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