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Litecoin could face trouble from exchanges if MimbleWimble is implemented

Chayanika Deka

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Source: Pixabay

“This is risky. EB hasn’t been implemented on a live chain AFAIK, so it’s new. It will take a lot of time, care, and auditing to make sure it is up to snuff. If not, coins can be lost or total supply inflated. Which brings me to my second disclaimer,” tweeted a Litecoin developer under the pseudonym “ecurrencyhodler.” Litecoin creator Charlie Lee, Grin developer David Burkett, along with ecurrencyhodler, have published Litecoin’s draft proposal for MimbleWimble implementation as a solution to scalability and privacy.

While it has been long touted as a game-changer for LTC, it could also lead to the delisting of the cryptocurrency on major exchanges, especially at a time when delisting of privacy coins like Monero, ZCash, and Dash has become a trend in Asia after exchanges like Coincheck, Upbit swung the axe and disabled trading of these coins.

The Financial Action Task Force’s [FATF] controversial travel rule that requires exchanges to collect and record customer information related to cryptocurrency transactions has sparked considerable outrage as it challenges the very purpose of a privacy coin’s being. To comply with this, OKEx terminated the trading of five privacy coins.

Will Litecoin be painted with a broad brush?

The current period is hostile for privacy coins. With Litecoin hopping onto the bandwagon with the MimbleWimble block proposal, the coin could come under unwarranted scrutiny, despite a positive response from the community.

Since private transactions mean that the total supply cannot be audited, this could bring trouble for the cryptocurrency from regulators. Developer “ecurrencyhodler” expressed his concerns regarding the same and tweeted,

“The third disclaimer I’d like to bring up is how government regulators, bankers, and exchanges respond. In the past few months, we saw Coinbase delist privacy marketed/focused coins like ZCash and dash. We saw similar things with OKEX. Opt-in MW will put LTC on the same page.”

Chayanika is a full-time cryptocurrency journalist at AMBCrypto. A graduate in Political Science and Journalism, her writing is centered around regulation and policy-making regarding the cryptocurrency sector.

1 Comment

1 Comment

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    David Peace

    October 24, 2019 at 9:38 pm

    Yes probably,Mimble Wimble is going to cause huge problems ongoing. It seems exchanges worldwide are willing to sacrifice privacy coin listings in order to maintain their licenses. So what happens to privacy coins now? there is an established & rapidly growing use base for Monero at least, XMR is becoming coin of choice on Darknet Markets but is that how Monero want to be perceived? & will it last when XMR is delisted from all major exchanges? not to mention the less well used privacy coins? does not look good going forward for privacy coins

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