In what some might perceive as a move straight from alchemy books, Litecoin Foundation and crypto cold-storage card manufacturer, Ballet, are tapping into the historic tale of transmuting base metal into precious elements. They have jointly given a sneak peek into an upcoming sale of 500 silver collectable cards loaded with 6.25 LTC, set to commemorate Litecoin’s third halving event.
These tokens of the digital world, a fusion of blockchain technology and precious metal, will be made from fifty grams of fine silver. Branded as a limited edition with only 500 in circulation, they are expected to be priced around $1,000 each – a small premium over their tangible worth of roughly $621. This price tag melds the market value of the silver and of the litecoin it carries.
This innovative undertaking by Litecoin creator, Charlie Lee, and his brother Bobby Lee, co-founder of Ballet, aligns with the notion that if Bitcoin is the “digital gold,” then Litecoin is the “digital silver.” The Lee brothers seem to be piggybacking on the current swell of interest in the crypto project stemming from the imminent “halving,” a cyclical event in Litecoin’s lifecycle.
This halving, set to transpire this week, will effectively reduce the mining bounty from 12.5 to 6.25 LTC. Much like its progenitor, Bitcoin, Litecoin issues a preset number of coins as a reward for every successfully mined block of transactions. This payout, known as a “subsidy,” is programmatically reduced by half after every 840,000 blocks – a milestone occurring roughly every four years.
Adding an altruistic hue to this endeavor, all proceeds from these exclusive cards will be entrusted to the Litecoin Foundation, bolstering the blockchain’s growth and uptake. The launch timing is significant, as it directly follows the halving event.
The silver monikers also double up as promise keepers. Post the halving, Charlie Lee will reimburse some Litecoins to select miners who consent to transmit their newly halved block subsidies directly to the designated blockchain addresses on these metal cards.
But why silver? “It’s on a silver card,” explained Charlie Lee, “So even if litecoin goes to zero, it will still be worth the price of silver.”
It’s also pertinent to remember that these cards are not merely souvenirs. Their design incorporates crucial security features, including a layered QR code that hides the litecoin deposit address and an encrypted private key, ensuring safe offline storage.
While turning digital wealth into a tangible treasure like silver is undeniably attractive, critics could point at the secure storage hurdles that come with physical forms. The curiosity now lies in how the crypto community reacts to their coins metamorphosing into precious metal collectables. Will this fusion lead to a harmonious transformation or a storm in a silver teacup? We’ll find out after the sale in August.
Source: Coindesk
