LTC Risk

LITECOIN (LTC)

INTRODUCTION
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‍There have been no expressed opinions by a regulatory authority in Canada about Litecoin or any of the other Crypto Contracts or Crypto Assets made available through Satstreet Inc., including an opinion that Litecoin itself is not a security and/or derivative. There may be sudden changes without notice to applicable laws that may adversely affect the value, use, transfer, or exchange of any of your crypto assets. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other provinces and territories of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement or the Satstreet Inc. Services Risk Statement. The below provides a summary of risks associated with Litecoin and is not a complete list of all risks and does not take into account an individual’s specific risk tolerance or situation. Investors are encouraged to conduct their own research prior to trading any crypto asset. Satstreet Inc. clients should read the Satstreet Inc. Services Risk Statement for the general risks associated with crypto assets made available through Satstreet Inc.
A copy of the Satstreet Services Risk Statement is available at https://satstreet.com/services/risk-statements
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DESCRIPTION

Litecoin first surfaced in October 2011, two years after the Bitcoin’s genesis block was mined. Litecoin was first released on Github by its creator, the well-known computer scientist Charlie Lee – a Google employee and later director of engineering at Coinbase. Litecoin had the initial aim of supplementing Bitcoin’s economy, rather than competing with it. The crypto community quickly accepted this narrative, calling Litecoin the “silver to Bitcoin’s gold,” which made the digital asset one of the highest-valued coins and a top five crypto for a long time. In November 2013, it witnessed a huge price surge that catapulted the asset into the public limelight. Lee sparked controversy in mid December 2017 when he publicly declared, while LTC was enjoying an all-time price high, that he had sold and donated all his Litecoin holdings in order to focus more objectively on the currency’s development. Litecoin’s price subsequently tanked. Many irate LTC holders blamed Lee for this – instead of taking into account the end of the 2017 bull run – for allegedly “dumping” his own cryptocurrency. Litecoin is a fork from the Bitcoin Core source code, with a few key differences that distinguish it from Bitcoin: it has a faster block generation time (two-and-a-half minutes versus Bitcoin’s ten), a larger total coin supply, and use of the Scrypt hash function as opposed to Bitcoin’s SHA-256 encryption.Litecoin also implemented several upgrades that were initially slated for deployment on the Bitcoin network, such as Segregated Witness (Segwit), with the aim of increasing its transaction throughput. It has also integrated a layer 2 scaling solution called the Lightning Network.

Litecoin (LTC) : https://whitepaper.io/coin/litecoin
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RISKS OF LTC

Any investment in cryptocurrency and digital assets, such as LTC, can include the following general risks:(i) volatility risk and liquidity risk(ii) short history risk(iii) demand risk(iv) forking risk(v) code defect risk(vi) regulatory risk(vii) electronic trading risk(viii) cyber security risk

For additional information of risks associated with cryptocurrency and digital assets, you may refer to the Satstreet Inc Services Risk Statement. In terms of specific risks, as LTC has no central working group or authority to disclose material information to the public regarding LTC. Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be a complete overview of all such risks and, in addition, there may be other risks that come with exposure to LTC. We encourage all users to perform their own due diligence to assess the risks associated with LTC and to determine whether this level of risk is acceptable to them. Neither LTC nor Satstreet guarantees the value of LTC, and holders of LTC will not have any recourse to LTC or Satstreet if the value of LTC declines for any reason whatsoever.

SATSTREET EVALUATION OF LTC

Satstreet Inc. has reviewed and assessed LTC prior to making it available through our services and has concluded that LTC is not a security or derivative under Canadian securities legislation; however, there is a risk that this conclusion could change in the future and that, in such event, Satstreet will be required to halt, suspend, and then remove LTC from its platform as described in the Satstreet Inc. Services Risk Statement.

Further, as indicated above, no Canadian securities regulatory authority has expressed an opinion about LTC, including an opinion that LTC is not itself a security and/or derivative. Based on publicly available information Satstreet has reviewed LTC, including, but not limited to, a review of the following: The creation, governance, usage, and design of LTC, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created LTC. The supply, demand, maturity, utility, and liquidity of LTC. Material technical risks associated with LTC, including any code defects, security breaches and other threats concerning LTC and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them. Legal and regulatory risks associated with LTC, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of LTC, and (ii) statements made by any securities regulatory authorities in Canada, other regulators in IOSCO-member jurisdictions, or the regulator with the most significant connection to LTC about whether LTC, or generally about whether the type of crypto asset, is a security and/or derivative.

Last Updated: June 2023

Risk Statements

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