Litecoin User Pays 200 LTC To Send Only 8.88 LTC

Why the Litecoin price is not a true reflection of its Actual Price
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On May 23, 2019, a Litecoin user paid 200 LTC to send just 8.88 LTC in what can only be described as an epic mistake.

According to Litecoin.com, the transaction that caused a ripple of effects in the network went down within block 1636831.

“It’s a rare and unfortunate occurrence when it happens, but yesterday on the 23rd of May 2019 someone paid a 200.00360600 LTC transaction fee valued at $17,536.30. The transaction according to data provided by blockchair was issued at 08:59 within block 1636831.”

The huge fee actually caused a quick rise in the entire network’s fees. Transaction fees rose more than 10x after the mistake. Litecoin.com addressed the issue and explained what probably occurred.

“The blunder has caused an anomalous spike in the average transaction fees paid on the network for the day, raising it from around 5¢ up to 70¢ returning it to levels last seen at the markets peak around $400 in December of 2017. What’s more concerning is that the value being sent for this exorbitant fee was 8.88199425LTC / $778.77, over 20x less than the fee.”

It seems that the user is a business and not a sole individual. The address is dialect new but has had a lot of funds move through it.

“The move appears to be a consolidation of funds as over half the inputs ended up back where they had originated. This address was first seen on the network back in 2018–04–05 at 05:33 and has had a total of 2,573 Transactions made valued at 2,870,071.19794546 LTC / $211,490,071.48 move through it with a final balance of 323.18795635 LTC / $28,747.57.

The address frequently adds and removes thousands of coins meaning it is more likely than not owned by a business on the network and not one individual.”

With the Litecoin halving event coming in August, the value of that 200 LTC fee is likely to climb. When the costly mistake occurred, the 200 LTC was valued at around $17,000. But a day later, as Litecoin surged, 200 LTC was worth over $20,000.

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