Sunday, 05 July 2020

Litecoin could face trouble from exchanges if MimbleWimble is implemented

“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.”

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