Litecoin ‘Significantly Overvalued,’ Cryptocurrency Hedge Fund Claims

Proponents of litecoin, the seventh-largest cryptocurrency, have long touted it as “silver to bitcoin’s gold,” the medium of exchange to BTC’s store of value. Much like physical silver, though, litecoin currently trades well below its all-time high, having plunged to about $55 from a peak of $358. However, according to cryptocurrency hedge fund Multicoin Capital, even at that mark litecoin is “significantly overvalued.”

Multicoin, which is short LTC, lays out its bear case for the asset in a new report, authored by managing partner Tushar Jain.

A Maturing Market and a Diminishing ‘Coinbase Effect’

The Texas-based fund, via Jain, argues that LTC faces a variety of negative catalysts, with no bull case to offset them.

First, Jain alleges that litecoin’s 2017 bull run came predominantly as a result of naivety among retail investors and immaturity in the cryptocurrency market. As evidence, he cites the fact that LTC was the “least expensive per-unit asset on…