Hi Folks,
I was watching the LTC and illegitimate Lcash fork for the past week and wondering how much of the LTC price was already priced in.
Turns it out was about 5% as we can see from the drop the moment after the fork block occurred:
A similar thing occurs when a stock spinoff occurs. The main stock immediately drops by the amount the spinoff (let's call it Spun-Co) was worth. Usually Spun-Co sells off for the first few days as index funds, mutual fund managers, and individual holders who don't want the Spun-Co liquidate the shares.
As the value investor Seth Klarman wrote, this can be a value opportunity for good spinoffs.
As for the illegitimate LCash, pretty sure this one is just another Scam-Co
Idea of LTC is to go away from sha-256 and Lcash is using sha-256. Pointless...
looks like nothing was priced in the market is just down abit
cryptoslicex, appreciate your comments. I still think there was a 5% price-in for LTC/Lcash fork looking at the moment of the fork. Other coins (ETH, NEO, EOS, etc) were all down yesterday vs BTC but the timeline is different.
Only Litecoin cracked by 5% at that moment and also the BTC price was fairly stable over those few minutes in time.
Your probably right. Its hard to tell with a 5percent change crypto can move 50percent in a day haha