Metalpha Technology Holdings, a wealth management company renowned in the cryptocurrency space, announced that it has partnered with the Litecoin Foundation, which is behind one of the popular altcoin projects, LTC. By partnering with the Litecoin Foundation, the company will strive for sustainable mining. Here are the details…
Popular altcoin Litecoin partners with wealth management firm
Metalpha Technology Holding Ltd, a wealth management company for cryptocurrencies, said Friday that it will work with the Litecoin Foundation to develop sustainable mining solutions for the Litecoin ecosystem. The Litecoin Foundation is a non-profit organization that maintains and develops products for the Blockchain of the same name. The partnership’s specific research areas will include developing derivatives, facilitating the use of renewable energy, improving energy efficiency and reducing carbon emissions from mining on the Litecoin network.
Metalpha will develop financial derivatives for LTC tokens, further aiming to support crypto miners with market hedge products and reduce the environmental impact of crypto mining. Hedging is a risk management strategy used to offset losses on investments by taking an opposite position on a related asset.
Miners will be able to mine independently of the market
Cryptocurrency mining is a resource-intensive activity that relies on powerful computers to process and verify transactions for proof-of-work (PoW) blockchains such as Bitcoin and Litecoin. Miners often receive network tokens sold on the open market as rewards to cover large costs and generate profits. However, the drop in crypto prices has caused confusion for miners as they have not been able to convert the high costs.
This is where hedging comes into play. This allows miners to continue their operations by generating coins regardless of market movements. Meanwhile, Metalpha and the Litecoin Foundation added that they will work with universities and research institutions to advance sustainable blockchain innovation, support public education around the Litecoin network, and improve network awareness, adoption and scalability.
What is the latest situation in Litecoin price?
Litecoin’s price action has been moving in an overall ascending pattern over the past few months. Metalpha partnership, on the other hand, does not seem to accelerate this momentum for now. Ranking 16th with a market capitalization of $6.8 billion, LTC’s value is around $94.16. The cryptocurrency hovered between $93.62 and $95.79 on a daily basis. So, it’s moved pretty sideways in the last day. As it is known, the coin had seen $ 410 at all-time highs. But it’s been almost two years since he broke the record.
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