tl;dr
Litecoin has partnered with Coinut, a Singaporean crypto exchange, to introduce Wrapped Litecoin (WLTC) tokens on Ethereum. This collaboration aims to enhance interoperability between the two protocols, providing access to new features. Despite this, Litecoin's price has dropped post-announcement, a...
Litecoin has partnered with Coinut, a Singaporean crypto exchange, to introduce Wrapped Litecoin (WLTC) tokens on Ethereum. This collaboration aims to enhance interoperability between the two protocols, providing access to new features. Despite this, Litecoin's price has dropped post-announcement, and the popularity of token wrapping may not attract widespread adoption.
The offering of WLTC tokens is intended to bridge the Ethereum and Litecoin blockchains, allowing users to access Ethereum's ecosystem seamlessly and gain features such as ERC20 smart contracts. Coinut has established a secure infrastructure for token wrapping, partnering with companies like Coinbase and Fireblocks for storage solutions. However, the long-term viability of wrapped LTC tokens remains uncertain in light of market interest.
Litecoin just announced a new collaboration with Coinut, a Singapore-based crypto exchange, to offer Wrapped Litecoin (WLTC). These tokens will be wrapped via the Ethereum network, enabling new interoperability between these two protocols. WLTC will be pegged 1:1 with Litecoin, facilitating a maximally smooth experience.
According to the press release, the main goal of WLTC functionality is bridging the Ethereum and Litecoin blockchains. WLTC users will retain an equivalent value from their LTC tokens, and also gain access to several ETH apps. WLTC users will enjoy some of the more specialized functions of Ethereum’s blockchain, like ERC20 smart contracts. These smart contracts can open up a whole world of specialized dApp features, such as staking, yield farming, lending/borrowing, and more.
Coinut, for its part, has created a secure infrastructure for token wrapping. For example, it partnered with two companies for storage solutions: Coinbase for cold storage and Fireblocks for hot wallets. The WLTC program will offer many new opportunities to users, but that won’t guarantee market interest alone. The long-term viability of wrapped LTC tokens might signal whether token wrapping is still relevant after 2023’s higher activity.
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