Just two days after Litecoin’s Mimblewimble update was activated on the Litecoin network, they had a major hurdle. Two South Korean-based crypto exchanges warn investors of a big mistake and say they can delist the altcoin project.
Litecoin’s future on centralized exchanges disrupted by Mimblewimble
Bithumb and Upbit, South Korea’s two largest crypto exchanges by volume, made important statements about Litecoin during the day. The announcements come at a time when major investors are constantly waiting for Litecoin to feel bullish after the new update. Upbit warned Litecoin investors with the following words:
Simply put, MWED opens the possibility of sending “secret” transactions on a chain that hides the amount sent. Essentially, it makes it impossible and tax-free to track an amount sent by authorities in countries like South Korea. The developers also add that the updates increase the throughput and transaction processing speed of the network.
Altcoin may be delisted, investors beware
This announcement, which could become a major setback for Litecoin investors, could potentially lead to the coin being delisted going forward. According to the statements of Upbit, which we quoted as Somanews, the exchange is always trying to prevent money laundering, so if they see that they are going to deposit money on the exchange through Mimblewimble, they will have no choice but to remove Litecoin from the list.
The exchange also added that deposits made through the new technology will result in a permanent loss of funds as the exchange cannot be used to verify the amount traded or the sender. While Litecoin’s place on major CEXs is controversial, decentralized exchanges (DEX) welcome new functionality that makes Litecoin transactions more secure and decentralized.
Litecoin founder emphasizes transparency
Litecoin founder Charlie Lee said in a tweet on the occasion of the Mimblewimble update activation:
IN TERMS OF CHANGEABILITY AND PRIVACY, I BELIEVE MWEB GETS YOU THERE BY 90%. THAT’S GOOD ENOUGH FOR MOST PEOPLE. THIS IS THE DIFFERENCE BETWEEN LIVING IN A GLASS HOME AND LIVING IN A HOME WITH WINDOWS. PEOPLE WHO NEED 100% PRIVACY CAN LIVE IN A WINDOW-LESS HOME.