Charlie Lee, the founder of Litecoin, once again warned investors about the importance of taking into account the associated risks when working with cryptocurrencies.
In an interview with YouTube channel Crypto Love, Lee returned to the topic of warnings he voiced at the end of 2017, when the price of Litecoin and other cryptocurrencies was at its peak.
"Cryptocurrencies do carry significant risks. I've seen a lot of bear markets or 90% drop. When Litecoin traded around $200, I said it could fall to $20. When the price drops, a lot of insecure investors come out, and those who bought about $200 and above and sold for $20, lost 90% of their portfolio. If you can't survive a 90% drop, don't buy it," said Lee.
Litecoin approached $20 last December and is currently trading around $120. Li hopes that the cryptocurrency has already reached its minimum for the current cycle.
He also touched on the upcoming Litecoin Halvening, which is less than a month away.
"Halvening is always a kind of shock to the system. After halving the award for miners, some of them will lose profitability and will be forced to shut down their equipment. If a high percentage does, the release of the blocks will slow down for a while. In the case of Litecoin, the complexity changes every three and a half days, so there is a possibility of slowing down the release of blocks by seven days, after which everything will be fine," he said.
At the same time, Li believes that the upcoming decline in Litecoin's issue should already be reflected in the price of the cryptocurrency.
"Everyone knew he was coming from the beginning. But the point is, people expect to see the price rise. That's why a lot of them buy because they expect the price to go up. It's a self-fulfilling prophecy - the price really goes up because they buy," Lee added.
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