Former Goldman Sachs partner Mike Novogratz believes investors should sell the recent Litecoin (LTC) rally, emphasizing his belief that Litecoin is nothing more than a glorified Bitcoin (BTC) testnet and comparing the digital assets to silver and gold.
In a recent tweet, Novogratz came out swinging by comparing the value and relative utility of gold and silver to that of Bitcoin and Litecoin. In the tweet-nalysis, Novogratz highlighted the market cap ratio of silver to gold, which is roughly 0.17%, while Litecoin is 6.4% of Bitcoin.
Gold has an $8.5 trillion dollar market cap. Silver is $15bn That is .17%. $BTC has a $90bn mkt cap. $ltc is $5.7bn which is 6.4% of $BTC. Silver is at least useful for industrial production. $ltc is a glorified test net for $btc. I don't get this rally. Sell $ltc buy $btc.
— Michael Novogratz (@novogratz) April 3, 2019
Litecoin has been on an absolute tear since the altcoin moved above its 200-day moving average back in February. Since that time, Litecoin is up roughly 160%, including another 40% in the last week.
While Novogratz sees no value in Litecoin beyond being a testnet for Bitcoin (which some argue is quite valuable), the altcoin has locked down several high-profile marketing partnerships in the last few weeks. Namely, Litecoin recently partnered with both Glory Kickboxing, the world’s premier kickboxing organization, and K-pop concert production company, C&U Entertainment Global, to promote Litecoin at the upcoming Feel the K-Pop concert.
With this week’s rally at a standstill after a pull-back yesterday, LTC is currently down 0.11% over the last 24 hours while Bitcoin is down 0.9%. Litecoin has outpaced Bitcoin’s growth over the last week by around 20%.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.