Litecoin Foundation has made top contributions to the successes recorded by the cryptographic project. There is a rumor going around the Litecoin ecosystem, bothering on the Foundation’s financial crisis.
The existence and the fact about the crisis was confirmed on Twitter by the Litecoin Foundation’s co-founder, Xinxi Wang, who assured there is ground plan in place to sustain the financial capability of the ever-active ecosystem.
Virtually all cryptographic projects have Foundations that strategize and bring about sensitive projects to support the growth of any project they give their backing.
Litecoin Foundation is one of those active Foundations in the cryptocurrency space with records of notable impacts on the development of the ecosystem they support.
How Litecoin Foundation’s Financial Crisis Goes Down
As envisaged and whispered around the cryptocurrency space, the recent expenses and projects carried by Litecoin Foundation have been burdened on the creator of the digital currency, Charlie Lee.
As reported by Trustnodes, the Foundation is somewhat undergoing financial deficit. Last year it recorded about $1 million income, but shocking reverse is the case this year as the Foundation now reportedly accumulates roughly $70,000 deficits.
Actually, the one million dollars income garnered the previous year was from a huge donation which summed up to be $830,000 and relatively $200,000 on merchant sales.
Merchant sales this year was more like a twist of fate. According to the report, the Foundation invested $280,000 but could only return with relatively $200,000. That means it recorded $80,000 losses.
Another area to consider when figuring what could have initiated the close to bankruptcy situation is the deal with WEB Bank and TokenPay, which costs around $2.8 million.
Litecoin Foundation Co-founder Says It Won’t End in Bankruptcy
As the rumor goes round, the co-founder at Litecoin Foundation, Xinxi Wang took to twitter to share solidarity points, averring that the Foundation will sustain the present financial predicament rather than going completely bankrupt.
Wang went further by making an allegiance to the course of the success of Litecoin Foundation and the progress of its ecosystem.
“We will do more if we have more money and do less with less money…”
This shows that the aim will not be lost both in good and bad times. He then pointed out that efforts are being put in place to raise money in order to create a lasting solution, which would bring an end to the financial crisis.
He concluded by soliciting help from the members of the community, which was greeted with mixed reactions.