SFOX, a cryptocurrency prime dealer that caters to institutional investors and high-volume professional traders, has made litecoin the fourth cryptocurrency listed on its platform. The Palo Alto-based company, which was founded in 2014, made the announcement on Thursday, stating that it chose to add support…
SFOX, a cryptocurrency prime dealer that caters to institutional investors and high-volume professional traders, has made litecoin the fourth cryptocurrency listed on its platform.
The Palo Alto-based company, which was founded in 2014, made the announcement on Thursday, stating that it chose to add support for litecoin trading in response to demand from its institutional client base.
“Because we cater to investors who are accustomed to Wall Street standards, we only add cryptocurrencies we are completely confident in,” said Akbar Thobhani, CEO of SFOX. “Litecoin has utility and liquidity, and is supported by a great team at the Litecoin Foundation. We are happy to deliver on our promises and provide our customers with an option that they’ve been asking for.”
Per the announcement, clients will now be able to trade litecoin against both USD and bitcoin, and LTC creator Charlie Lee commented that the move would help increase litecoin’s liquidity and make the coin more accessible to institutional buyers.
“This partnership provides increased liquidity and institutional exposure for Litecoin,” said Lee. “SFOX is backed by several well known investors, which speaks to the company’s business model and team. We look forward to providing support through the Litecoin Foundation to help make this partnership a success.”
Indeed, though not well-known among retail cryptocurrency investors, SFOX has backing from names that are much more familiar. Last month, CCN reported that SFOX had closed a $22.7 million Series A funding round led by Tribe Capital. It also attracted investments from other notable firms and personalities, including Y Combinator, Khosla Ventures, Blockchain Capital, and Airbnb co-founder Nathan Blecharczyk.
SFOX said that has processed over $9 billion in transaction volume since its launch in 2014 and has seen its client base grow 12-fold in 2018, even as the cryptocurrency market has taken a steep dive from its all-time high.
Analysts remain divided on whether litecoin remains a high-growth investment product. Mati Greenspan, senior market analyst at eToro, published an August report speculating that litecoin is “massively discounted” relative to its fundamental value. However, cryptocurrency hedge fund Multicoin Capital recently disclosed that it is short LTC, arguing in a report that the coin faces a number of “negative catalysts” that will likely prevent it from participating in the next sustained market rally.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: January 24, 2020 10:59 PM UTC