Will Litecoin’s MimbleWimble Upgrade Become Its Doom?
June 08 2022 - 6:00PM
NEWSBTC
Five major South Korean exchanges announced their intentions to
delist Litecoin (LTC). The cryptocurrency recently implemented an
update to improve its privacy and scalability features. Related
Reading | Litecoin Reveals Rollout Date For MimbleWimble, Will
LTC See Relief? As a result, Upbit, Bithumb, Korbit, Gopax, and
Coinone will stop offering to their customers. The update has made
Litecoin incompatible with South Korean regulations. In the
official delisting announcement posted by Upbit, the platform
claims the following trading pairs will be unavailable as soon as
today, June 8th: LTC/KRW, LTC/BTC, and LTC/USDT. The core reason
behind this decision, the exchange said, is: (…) it is believed
that the upgrade has been carried out with a selection function
that does not expose transaction information. The decision is
guided, the post continued, by South Korea’s Specific Financial
Information Act. This regulation demands exchange platforms to
check a blockchain’s transaction for “transparency”. In that way,
Upbit and other South Korean exchanges can verify that the user or
the transaction doesn’t violate the country’s anti-money laundering
regulations. The rule is also aimed at preventing bad actors to
obtain funds via illegal activities. The South Korean exchanges
claim the MimbleWimble update will provide the Litecoin network
with these capabilities: (LTC) has room to see the addition of
technology that makes these transfer records unidentifiable, so we
decided to designate it as a significant issue. So far, there have
been no deposits made using the Mimblewimble function with Upbit,
and we do not plan to reflect deposits in the future. The
MimbleWimble and Litecoin’s new privacy features seem to affect
South Korean exchanges. However, privacy coins have been outcasted
from major trading platforms over the past two years. Monero (XMR),
Zcash (ZEC), and others suffered from a similar decision taken by
many exchanges across the world. The MimbleWimble could unleash
this possibility for LTC. Litecoin Unaffected By South Korean
Exchanges’ Decision At the time of writing, LTC’s price seems
unaffected by recent developments. The cryptocurrency continues to
move sideways and trades at $62. Larger cryptocurrencies, such as
Bitcoin and Ethereum, continue on the same path as they remain
rangebound and unable to break above local resistance. Only Cardano
(ADA), due to a surge in network activity, and Chainlink (LINK),
due to its roadmap on staking, seem to be decoupling from the
overall market. Research firm Santiment noted: Crypto prices
chopped wildly in the opening week of June, but the result has been
mainly no movement for Bitcoin and Ethereum. Altcoins, on the other
hand, have shown major decouplings from one another, with ADA, LINK
and HNT performing well. Related Reading | Litecoin Drops 87%
Trading Volume In Q1 2022 Additional data from material indicators,
for low timeframes, records an increase in buying orders from
retail investors. Larger investors seem to be selling into the
current price action, but it is too early to tell if this trend
will sustain for the coming days.
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