Can the Litecoin LTC-20 protocol replicate the success of BRC-20?

LTC-20 has an extremely low threshold for participation, and you can enter the Litecoin inscription market with as little as a few dollars.

Original title: "Litecoin LTC20 protocol, the next speculative market that will be born hundreds of times and thousands of times?" "

Written by: Simi Sammi

One Encrypted New Narrative——New Paradigm Investment Opportunities

In the past two weeks, the brc market has exploded, creating many myths of getting rich. You must have seen similar remarks: "If you spent 300 US dollars to inscribe the ordi inscription on brc20 in March, based on the cost of 3 US dollars for a piece of 1000, it is now worth 1.5 million US dollars."

The occurrence of each round of wealth creation movement in the currency circle is essentially "the evolution of the Token distribution method", which is also the best pipeline for producing encrypted rich people in each cycle.

16 years of POW computing power to generate coins, 17 years of ICO (ETH exchange project Token), 18 years of IEO (trading platform currency exchange project Token), Fcoin transaction mining (mainstream currency exchange platform currency), VDS resonance mode, 20 Years of DeFi (provide liquidity in exchange for Token), swiping airdrops (gas fee Token for gambling projects), 21 years of play to earn......

Then to the recent BRC20, deploy, mint and transfer inscriptions on Bitcoin. It is a more decentralized and fairer Token distribution method.

Its principle is similar to signing Yi Yangqianxi's signature on a hundred-yuan bill. The inscription is limited to four characters and is issued in limited quantities, so its value is higher than that of a hundred-yuan bill of the same face value, because it has a basis for hype. The level of the premium is dynamically determined by multiple factors such as narrative, scarcity, and consensus foundation.

The current market value of Brc20 is about 487 million US dollars

Two reproducible success models - time machine investment rules

The most difficult thing in investment is timing, followed by price selection. It is difficult to grasp whether and when a new track will break out. In the process of 0-1, it may take a lot of time and capital cost on the countless 0s before the 1 appears.

Therefore, whenever a new paradigm opportunity appears in the market, it is a relatively simple and high-odds way to find and bet on the track dragon two. For example, when hyping the oracle track for 20 years, I missed the leader $link (9 times in 130 days), and I can also invest in $band (16 times in 35 days); when DeFi Summer was hot, I missed the leader uni, and then there is the bsc chain cake (the second-level highest increase is nearly 100 times); if you miss crypto punk, there will be boring apes, Azuki, etc.

Capital is more inclined to proven business models and products, and prefers to make deterministic replications rather than high-risk and high-investment innovations. It is also a shortcut to win through continuous research on successful tracks and using the "time machine investment rule" to place bets on projects with similar soil.

Three LTC20 - the best speculative depression

Bit gold, Wright silver. Missed bitcoin's brc20, don't miss litecoin's ltc20.

Advantages of Ltc20

The various xRC20 protocols that have sprung up like mushrooms are a concrete manifestation of the market fomo, and users are eagerly looking for the next opportunity that will multiply by a thousand times. And ltc20 is the best solution at the moment.

On May 2, the Litecoin community launched a forked version of the BRC20 standard, called "LTC20".

Compared with brc20: Litecoin produces a block every 2.5 minutes (Bitcoin 10 minutes), which can get faster transaction confirmation, and at the same time the gas fee is extremely low (less than 0.1u per transaction, a few u to hundreds of u per transaction in Bitcoin) ranging), it has more advantages in terms of block generation speed, flexibility, transaction costs, etc.

Compared with drc20: The drc20 protocol launched by the dogecoin community currently has no official leadership, and the parties are divided and scattered. And ltc20 is an inscription market with official organizations and platforms. Secondly, Dogecoin has a higher gas fee per transaction, about 3 times that of Litecoin.

Compared with orc20: orc20 is a supplement to the brc20 ecology, the form of issuing coins is more flexible, Token can be issued additionally, and the namespace is not limited. Orc20 is more like an Ethereum erc20 representation on Bitcoin. To some extent, it deviates from the basic disk of the inscription hype. One of the questions it brings is, if Bitcoin is erc20ized, why don't we use Ethereum's erc20 directly?

The rise of brc20 has been advertised as a movement against centralization and giant wealth whales. The essence behind it is that retail investors hope to become serfs and sing, and let institutions, main forces, and trading platforms take everyone's orders.

There are only retail investors, and the market without the participation of main funds is like a pan of loose sand.

The core advantage of LTC20 compared to other xRC protocols is that with the halving narrative of Litecoin in August, market funds and flows will focus on Litecoin. LTC20 was driven by the wealth-creating effect of BRC20 before, and then supported by the halving narrative , will become a reservoir for capital overflow. There are more opportunities to attract main players, institutions, and trading platforms to enter the market.

The market value of LTC is about 6.8 billion U.S. dollars, and the overall market value of brc20 is about 500 million U.S. dollars. It only needs a little capital overflow from the market to ltc20 to create many investment opportunities of hundreds of times and thousands of times.

ltc20 development status

The upward momentum of LTC in the past two days has led to a surge in speculative interest in the token. The current notional value of LTC's open interest (OI) soared to $435 million, the highest level since the 2021 bull market phase.

A rise in OI after a price increase shows that more money is entering the market and trading the Lite halving.

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Source: Coinglass

One of the key indicators of network growth is the number of new addresses. LTC’s network activity has exploded to unprecedented levels. Daily active addresses surged to an all-time high of 832,000 on May 10, and daily transaction volume also peaked on the same day, compared with 331,000 for Bitcoin. For Litecoin, this is an important milestone.

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Source: Santiment

Unlike Bitcoin and Ethereum, which recorded transaction fee spikes during periods of network congestion, Litecoin users did not experience transaction fee spikes.

LTC20 Inscription Concept at a Glance:

The LTC20 ecology is currently in a very early stage, the infrastructure is not perfect, and there is no dedicated trading market. The official announcement is that the trading market is expected to open in the next three weeks or so.

LTC20 market development space

The threshold for LTC20 participation is extremely low, and you can enter the Litecoin inscription market with as little as a few dollars.

Users are less sensitive to prices, and only need a small price to have the opportunity to earn high profits, and they will be addicted to it and ignore their own costs. If there is an uninterrupted wealth creation effect, ltc20 has the opportunity to become the largest speculative market and flow pool for inscriptions.

Brc20 and ltc20 are not in antagonistic competition, but interdependent and develop together.

What Litecoin has to do is to make the inscription market, which was originally played by only 1% of people, go to 5%, 10% or even higher through a lower threshold and a smoother user experience, so that users will become more civilians in the future.

From this perspective, if Brc20 is benchmarked against the NFT market, ltc20 is more like a decentralized digital collection market. The height of Brc20 as the leader determines the upper limit of the track, while ltc20 and other xRC20 protocols expand the entire market scale horizontally, feed back brc20, and make the cake bigger together.

4. Halving is the biggest narrative of Litecoin

The halving of Litecoin is one of the next biggest narratives in the currency circle. The funds and attention of the entire market will be focused on Litecoin. The halving is expected to be on August 3. If the interest groups behind Litecoin want to make trouble, Now is the best time.

The market always moves in the direction of least resistance. We can try to jump out of the fixed thinking mode and transfer the bet on whether Litecoin will be halved from the price of $LTC itself to LTC 20.

Considering the cost of building momentum, the relevant inscriptions on the halving narrative are the best way to make a difference.

LTC20 is a very small fulcrum, only a few million to tens of millions of dollars in market making can detonate the market, and even leverage Litecoin with a market value of 6.8 billion US dollars.

Take the inscription $HALF of the Litecoin halving concept as an example, the total amount is 21 million, and the cost of each mint (1000 coins) is 1u. Suppose the main force uses tens of millions of dollars to push the market value of $HALF to 100 million dollars , $half increased by about 5,000 times, and ltc20 gave birth to a new wealth myth, which will eventually form a flywheel effect.

Halved inscription half wealth creation effect—fomo funds poured into ltc20—increased use cases of ltc, driving up the price of ltc currency—Litecoin miners make money/exchanges get traffic—inscription Summer—industry positive externalities (web2 traffic Influx)

Perhaps the bulls in the market have not yet formed a strong Schelling point, enough to push the Litecoin market value to a new climax, but this consensus Schelling point is enough to detonate Ltc20.

The speculative game under the five positive sum game

Gambling is a zero-sum game, either you die or I die. The essence of speculation is a "positive sum game". The result of a positive sum game can be that most of the participants are winners. This is the charm of speculation.

The general trend of LTC20 is positive sum game, incremental market.

If the market is regarded as a chess game, use "panoramic thinking" to analyze the core interests and goals of all market participants.

Litecoin official and the organization behind it: the core interest is the currency price and ecology. As a veteran mining currency, if there is no response to the halving every four years, Litecoin will be eliminated by the market and gradually disappear in the long history of encryption. The emergence of LTC20 has increased the usage scenarios and frequency of Litecoin. The double narrative of halving + LTC20, using tens of millions to hundreds of millions of dollars to market the Litecoin inscription market, creates a network effect and marketing value that is far greater than directly pulling Litecoin itself is much more useful.

Litecoin miners: The popularity of brc20 has made bitcoin miners the biggest beneficiaries. The leader has played a demonstration role, which will make Litecoin miners and mining machine manufacturers more intuitively feel the benefits of promoting the development of ltc20.

Trading platform: The essence of an exchange is a traffic business, and the core KPIs are users and traffic. For projects that can create topical heat and attract users to trade, they are willing to contribute to the flames. Whoever can become the core trading market of LTC20 Token first will have the opportunity to become the next big traffic pool.

Media: The core appeal of the media is to pursue hot spots and create topics. Litecoin halving, as one of the biggest crypto narratives in the coming months, is a topic that all media cannot avoid. How to make the halving attractive and in-depth, ltc20 is a good material. This announcement will in turn boost the development of LTC20.

Retail investors: Fomo psychology, missed brc20 to get rich, and funds are eager to find the next exit.

For the entire encryption industry: the user portraits behind blind boxes, digital collections, cards, trendy games, etc. are mainly young people of Generation Z. Low investment, scarcity, curiosity, and experiential consumption are the core reasons that attract them. As an aborigine in the digital age, he is keen on exploring novel things and agrees that everything can be fried. LTC20 has similar properties and soil, and has the opportunity to become the next Web3 traffic entrance.

LTC20 is currently still a blank market, and it is an opportunity to bet on multi-party market games with super high odds. The cost of inscriptions only needs to range from tens to thousands of dollars, and you can win a chance to earn hundreds of times and thousands of times.

The chart below demonstrates the potential upside for LTC20 if the inscription trend continues. This is a blue ocean with a high probability of rapidly growing from 0 to hundreds of millions to billions of dollars in market value.

Predictive analysis of the development of things is important, but if the risk exposure is not calculated, it becomes a kind of obsession with self-brainwashing.

A single spark can start a prairie fire, but only if there is a source of that spark. The current risk point of Ltc20 is that the infrastructure is not perfect. For example, the trading market of Ltc20 has not been launched, and the 0-1 process cannot be carried out. Or when the market was launched, it coincided with the brc20 or $ltc market being cold, these are uncontrollable factors.

The market is a piece of grass, where the money is blown and poured. Before time gives the final answer, any affirmative or negative remarks such as "the Litecoin halving market is long gone" and "LTC20 will definitely develop" are nonsense with no reference value.

The real DYOR is to make a forward-looking prediction of the development direction of things, and at the same time do a good job of risk control, confirm the maximum risk tolerance, calculate the winning rate and odds, and finally decide whether to enter the game.