December 9, 2022

MimbleWimble threatens to delist Litecoin

Once in the top 5 cryptocurrencies, Litecoin is now in 18th place with a capitalization of $4.9 billion. this position is under threat after the MimbleWimble update, which caused the risk of delisting from the leading South Korean crypto exchanges.
MimbleWimble threatens to delist Litecoin

Image Source: Cryptocurrency Exchange StormGain

The MimbleWimble (MVEB) update allowsusers to make confidential transactions by consolidating multiple transactions into a single record. Blocks are also checked, but the record of previous transfers now looks like a bunch of random characters. Since the previous history is not involved in the write, the performance of the network is increased.

MVEB was launched in Litecoin last week andOn May 23, the leading South Korean exchanges - Bithumb and Upbit - issued a warning to investors about the risks associated with this. In particular, payments made with MVEB cannot be refunded for any reason. And there is a possibility of Litecoin delisting, as confidential transactions interfere with KYC (customer identification) and AML (anti-money laundering) policies.
MimbleWimble threatens to delist Litecoin

Image source: cafe.bithumb.com

In 2019 under pressure from regulatorsSouth Korean exchanges have already carried out a massive delisting of anonymous coins, as a result of which they lost about 25% in value in a month. Now their fate threatens Litecoin, which, with a similar development of events, will correct to $53.

At the same time, MVEB is less secure anddegree of confidentiality than Monero or Zcash, and with the development of quantum computers, the presented protection algorithm will lose its relevance. But such arguments are unlikely to stop South Korean stock exchanges from tightening the screws.

The problem is exacerbated by the recent collapse of Terra(LUNA): Representatives of the largest South Korean crypto exchanges were summoned to parliament to clarify the circumstances of the loss of funds by a large number of investors, and the Seoul police sent them a request to freeze the assets of the Luna Foundation Guard to prevent further withdrawal of funds by potential attackers. The negative background strengthens the likelihood of an early delisting of Litecoin.

Analytical group StormGain

(platform for trading, exchanging and storing cryptocurrency)