Chainlink which recently entered the top 10 cryptocurrency list by beating BNB and LTC, is allegedly involved in ‘Pump and Dump’ technique.
The Chainlink officials flag the research report as FUD and term it as a paid dis-info campaign.
Chainlink continues to surge in the market maintaining its eighth position in the coinmarket cap listings.
‘Chainlink Fraud Exposed’ Claims Asset Management Firm
Zeus Capital, an asset management firm and activist investor, recently released 60 pages document. The research paper claims that Chainlink as a company and its token LINK is a near-complete fraud. The main takeaways of the extensive report were:-
- The report claimed that the company manipulates the market with traits of the classic pump and dump techniques.
- Two of the founders of the Chainlink are constantly selling LINK from their vast reserves into the market with a discounted price to selected institutions over-the-counter(OTC). Which incentivizes the purchasers to sell their holdings quickly looking into the profits and thus creating a downward spiral.
- LINK lacks functional decentralized ecosystem. It is classified as a security token and hence the investors’ funds are put into the substantial risk of dealing with unregistered securities.
- LINK’s tokenomics model is a conflict of interest between holders, clients and the founding team with respect to the price of LINK.
- The people behind this project are very few who work part-time and remotely. They are focused on marketing and community building with very little professional knowledge.
- Chainlink’s Oracle solution services are expensive.
- The developers of the project are making constant changes to the code while the executives are avoiding being associated with the project.
- The Chainlink’s token LINK is overpriced, intrinsic value is projected to be in between $0.05 to $0.20.
Chainlink Flags Zeus Capital Research Claims
Chainlink with its official tweet claimed Zeus Capital as a paid campaign. It states that they intended to spread misinformation on chainlink so that the investor sell-off their holdings and they could make money. Hence the research papers are only to scare the investors without concerning about their financial welfare.
Zeus Capital sent emails to all their investors attaching a copy of their report. However, facing heavy criticism from the netizens over the reports, twitter initially deleted the tweets from Zeus Capital and later suspended their account for violating twitter terms – @ZeusCapitalLLP
Chainlink Continue to Thrive the Market
Chainlink’s token LINK, however, continues to lead its way to the moon with approximately 2.52 per cent increase in the price. At the time of recording, LINK was priced at $8.40
Conclusively, FUD on Chainlink might not have proved effective as the claims of Zeus Capital are also flagged by netizens. Well, the truth behind Chainlink being adopting pump and dump technique would be revealed soon. On the other side, LINK is currently surging with good volume and expected to continue in the coming days.