I don't know if there is really a conflict of interest. Look on what happened when he did announced that he sold most of his Litecoins, the whole crypto market goes into a crazy correction and I don't know if that's intentional or that just happened and it's a coincidence.
Im on litecoin for months now and learning that the founder does this is not a good sign. It isnt a conflict of interest when you holding something you made, for the purpose to show that you believe on it. But this action makes me question if he does it for supporting a new altcoin then there is something happening behind it and that is a bad move.
He just want to prove that his not manipulating his own coin.
I get that but honestly by the timing and the reason is so shallow, nevertheless he can even do it without using his real wallet and identity on holding or manipulating? Right. There is some sort of much more deeper reason for it but to accuse a big person like him without proof is useless. I just keep myself open for possibilities that might affect after his actions.