Charlie Lee, Litecoin founder said he has ‘faith’ that the crypto market will start to move cogent again soon. This statement was made in an interview with CNBC’s Fast Money.
Charlie discussed the recent Bithumb hack and the implications of all the exchange hacks on cryptocurrencies and traders in a conversation with host Melissa Lee and FM Brian Kelly.
In an attempt to give a response to the latest attack on South Korea’s largest crypto and the way it affects traders perception on cryptocurrencies, Charlie Lee agreed to the fact that traders being fearful doesn’t reflect the flaw in the cryptocurrencies themselves.
“It doesn’t really change the fundamentals of bitcoin, litecoin, and other cryptocurrencies…if a bank gets broken into does that affect the price of gold?”
He argued that crypto exchanges will have to constantly adapt to new threats since they are a lucrative target for cybercriminals.
“We’re very early in the crypto time frame… I think we’re getting better and better at it but we still have a lot to improve.”
According to Charlie Lee, a key difference between crypto trading the traditional financial system is the fact that investors themselves are responsible for the security of their own tokens when trading digital assets. He emphasized the fact that holding your tokens in an offline or cold storage wallet rather than on an exchange is the safest measure. Traditional investors do not really bother about this level of financial management.
Charlie Lee told CNBC in a different question that he is currently “excited about…lightning networks” and is bullish on this new technology; this takes Bitcoin, Litecoin, and other cryptocurrencies out of this irascible quarter.
“Technically Bitcoin has gotten stronger and stronger over the past few years where developers are working hard on getting the second layer solution for payments working on bitcoin and litecoin… that’s been going on really well”
He added that the total invested capital flowing into the crypto market does not really equate with these new technological developments.
“ …The price has dropped like 60%-70% over the past year but the price seems kind of disjointed from the actual development of bitcoin and cryptocurrencies… Over time I think the price will adjust. I believe we’re in the bear market right now but I have faith that the price will be rebound fairly soon.”
“It’s really hard to say. Could be a 3 to 4-year bear market or it could recover tomorrow,” was Charlie’s answer to the question, “how long do you believe this bear market will last?”