I found out something so interesting today. I went to my exchange wallet and i was surprised to see a coin called LBTC, i was like wow.
Well, before today, I've been wondering if there's anycoin that could grow so big as bitcoin did? Well i looked through lots of coin i saw the bullish gaps and i thought to myself, i don't think any coin could. But today was different.
I actually thought that my eyes was deceiving me but it turned out that they were not.
As of then Bitcoin was $115, 927 but the coin was $116, 143š±. I was shocked and like š³
I really thought it might be a mistake, then i decided to look at things and research about this coin and this is what i found.....
The LightningBitcoin (LBTC) coin was launched in 2017, with its mainnet going live in December 2017.
*The LightningBitcoin (LBTC) project was created and promoted by a Chinese developer and entrepreneur named Jack Zhang (Zhang Zhengwen).
He was the lead behind the fork that created LBTC from Bitcoin in December 2017, aiming to combine Bitcoinās decentralization with faster transactions and a Delegated Proof of Stake (DPoS) consensus model.*
I went forward to ask why no one knew this coin, this was what i got....
This is because LightningBitcoin (LBTC) never reached the scale and popularity of Bitcoin (BTC):
Too Many Forks
In 20172018, the number of Bitcoin forks (Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, LBTC, etc.) was plenty. The majority of them were not unique, as the society was divided and disorientated. Bitcoin Cash was the only several forks that received significant momentum.
Lack of Adoption
Bitcoin has the best network effect - millions of users, miners, exchanges, and businesses accept it. LBTC had never had such adoption, or developer backing, and it failed to compete.
Trust and Branding Issues
Bitcoin has earned credibility since 2009. LBTC was a new fork, a fork governed by a different model (DPoS), and the same track record was not available. It was viewed by many in the crypto community as a speculative fork with little long-term vision.
Poor Marketing and Community Support.
In contrast to Bitcoin, which boasts of a huge following worldwide that is advocating its use, the LBTC community and development activity became inactive within a short time. Most of the users lost interest without vigorous advertising and sustained growth.
Regulatory/ Exchange Listings.
Bitcoin is everywhere and known even by governments. LBTC was listed only in several smaller exchanges and therefore it was not as accessible and difficult to trade, which restricted its expansion.
In short: BTC became the ādigital goldā of crypto, while LBTC was just another fork that couldnāt keep up in adoption, branding, and trust.
I still went ahead to ask
"Why does it have the same bullish effect with bitcoin"?
*Even though LightningBitcoin (LBTC) is nowhere near as popular or valuable as Bitcoin (BTC), youāll sometimes notice that it moves in the same direction as Bitcoin ā rising when BTC rises and dropping when BTC drops. Hereās why:
Bitcoin Dominates the Market
Bitcoin is the largest cryptocurrency by market cap. When Bitcoin is bullish, investor confidence spreads across the whole crypto market, including small coins like LBTC.
Correlation Effect
Many altcoins (including forks like LBTC) are highly correlated with BTC. Traders and bots tend to follow Bitcoinās price action. So when BTC pumps, most coins get dragged* up with it, even if their own fundamentals are weak.
Shared Identity as a Bitcoin Fork.
LBTC literally is a branch of Bitcoin. Such association causes traders to treat it as a mini-Bitcoin. Forks such as LBTC tend to follow the same trend as BTC does when it undergoes a bullish momentum due to the psychological and speculative relationship.
Low Liquidity & Speculation
Cryptocurrencies such as LBTC have low volumes of trade. This is such that even minor bursts of purchases (particularly when the entire market is in a bullish mode) could cause the price to shoot up and give the effect of a great bullish impact.
Investor Psychology (Herd Effect)
When Bitcoin is on a run, the investors begin to find cheaper options that would appear like Bitcoin but cost significantly less per coin. This is an advantage to LBTC as there are traders who seek to speculate that forks would track the price of BTC.
But hereās the catch:
Unlike Bitcoin, LBTCās bullish effect is usually short-lived and speculative. BTC rallies based on global adoption, institutional investment, and real use cases. LBTC mostly rides the hype wave, so it can crash just as quickly.
I also went ahead to ask
"Why is not listed on binance and other exchanges market place?"
The main reason LightningBitcoin (LBTC) isnāt listed on Binance, Coinbase, or other top exchanges comes down to a mix of credibility, demand, and risk factors
Low Demand & Trading Volume
Exchanges only put coins on board which are appealing to a sufficient number of traders. LBTC had never enjoyed a large user base and regular demand and therefore placing it on a large platform would not create much activity.
Weakness in Community and Development.
Coin success is often characterized by a team of active developers, frequent updates, and a huge fan base. The growth of LBTC did not continue the same pace as it started after its launch, and the interest of the community had diminished - which made the platform unappealing to large exchanges.
Exchange Reputation and Risk Management.
Binance and other companies take their reputations seriously. Enlisting poor or dead projects may hurt trust. Exchanges became cautious since most of the Bitcoin forks of 20172018 became deserted or low-value projects.
Listing Fees & Requirements
Projects typically pay a lot of money to become listed on Binance or Coinbase, complete very long documents, and undergo rigorous audits (security, legal, and team background). It does not appear that the team of LBTC did this process well.
Regulatory Concerns
The presence of some forks and small coins produces some red flags among the regulators due to the obscure governance and absence of transparency. This is another reason as to why they are not listed on exchanges.
In short: LBTC didnāt have enough adoption, community trust, or ongoing development to convince big exchanges that it was worth listing. Instead, it only got listed on a few smaller or mid-tier exchanges.
But something got my attention, this coin is actually listed as Web3 so i went further to ask "Why is recognised as a Web3 coin?"
LightningBitcoin (LBTC) is sometimes referred to as a Web3 coin because of the way it was designed and marketed when it launched in 2017
How?
Delegated Proof of Stake (DPoS) Consensus.
LBTC is based on the Proof of Work (PoW) in Bitcoin, but it is built around DPoS, which is a system in which token owners vote on delegates to authenticate transactions. This form of governance is more related to the Web3 principles of community participation and decentralization.
Smart Contracting Vision and Scalability Vision.
It was initially positioned as the LBTC team called it more than money. They even marketed it as a fast, scalable, smart-contract-capable blockchain, to support decentralized apps (dApps) ā a feature of Web3.
Quicken Transactions and Usability.
LBTC is built on the concept of lightning-fast transaction time and reduced fees so that it can be more useful in dApps, gaming, or in digital identity, which is directly associated with the Web3.
Branding & Positioning
A large number of post-2017 projects identified as being of the Web3 movement to differentiate themselves with Bitcoin. LBTC went on to press with user control, decentralization, and practical utility more so as a store of value.
Community-Controlled Direction
Through DPoS voting, LBTC provided more weight to token holders in upgrades and decisions. That corresponds to the vision of Web3 which is to decentralize power to communities.
What actually made me sad was; The reality, though, is that LBTC didnāt live up to its Web3 vision. While it has the design traits of a Web3 coin, it didnāt gain the adoption or developer ecosystem that true Web3 blockchains (like Ethereum, Solana, or Polkadot) have today.
#hivelearners #leofinance #niche #bitcoin #finance #decentalizedcoin #web3 #blockchain #ecency
