Prominent Names Within the Crypto Space Abandon Ship, Cashing Out

Last week I penned an article about the history of Bitcoin and how the community around it has dramatically changed. This isn't just Bitcoin however, it is all Cryptos. In the beginning, as I discussed last week, the Bitcoin community was all about helping each other grow and prosper, it had its own micro economies and because of this it boomed.

Fast forward to today, and as I discussed in last week's article, the landscape is nothing like it once was. "Getting rich quick" topics are all the rage on Bitcointalk, and no longer can small businesses, even use Bitcoin as a form of payment, due to skyrocketing fees.

As I mentioned, this has led to a large number of the original veterans of the Crypto space, leaving all together, as the vision they once saw is long dead. Little did I know just a mere week ago, just how over the mark I was in this assessment.

The trend appears to be continuing and is now moving to high profile names within the Crypto space, with two in particular now cashing out of their cryptocurrency positions almost entirely.

The first is Charlie Lee, the founder of Bitcoins little brother, Litecoin. Litecoin is often referred to as Bitcoins silver and is thus heavily attached to the success of Bitcoin. This has caused Litecoin to skyrocket in value over the course of the year.

In fact, this time last year, it was trading at a mere $3.67 USD per Litecoin. Fast forward to today, where it is sitting at roughly $320 USD per Litecoin. A phenomenal gain of well over 9000% in less than one year!

You cannot blame Charlie Lee for cashing out, but what is shocking, is the fact that this has happened, given that Lee has been one of the biggest promoters and pushers of Litecoin in the past and how still, there are those stating that the price can never go down. A warning sign, noticed by any contrarian investor.

Charlie Lee of course had an explanation that had nothing to do with the parabolic rise of Litecoin, stating that he suddenly now believe his ownership of Litecoin to be a "conflict of interest". You can read his full reddit post here.

The second prominent figure to cash out of the cryptocurrency markets is the founder of the original Bitcoin.com website.

Emil Oldenburg, of Sweden has been a massive supporter of Bitcoin and it comes as a shock to many to learn that not only has he cashed out of Bitcoin, but is now dismissing it as a valid form of money. He even went as far as to state that Bitcoin is currently "the most risky investment a person can make".

During his interview with Breakit, Oldenburg goes on to explain why he sold out of his Bitcoin position, which will come as a surprise to many, but not myself, as it is exactly what I have been talking about in this article and preceding ones;

“It’s a group of fanatic bitcoin talibans who themselves do not use bitcoin everyday to want it like this. They see bitcoin like digital gold and a technical experiment, not something you should actually use. It will never be a currency used in everyday life or for people who run companies.”

The markets have simply not priced this in yet. The ones who had the foresight to be a part of Bitcoin from inception are sending up red flags and are even publicly stating that they are cashing out of their positions.

Yet, the price of Cryptos continues to trend higher. Perhaps these announcements will be looked back upon as the beginning of the top for Cryptos, perhaps not. Only time will tell, but what is certain is the fact that high profile names are taking notice of what I have been stating for close to half a year now, the community around Cryptos has dramatically shifted and changed. What sparked its meteoric rise is no longer in place and sadly, is likely never coming back.

- Source, As Originally Seen on the Sprott Money Blog