Crypto Hype Over Halving Leaves Litecoin Owners Holding the Bag

What was supposed to be a sure-fire way to drive up the cryptocurrency Litecoin’s price is at risk of quickly turning into a liability.

Hype around Litecoin’s so-called halving, which has been trumpeted as a catalyst for reducing future supply, helped more than quadruple its price this year. But as the event itself has neared, investors have turned sour on the fourth-largest digital token, pushing it down 18% last month.

The halving, which Litecoin founder Charlie Lee said will take place on Aug. 4, cuts the number of coins awarded by 50% to the miners who run the computers ...