London, July 16, 2020 – Zeus Capital, the asset management firm and activist investor, has published an extensive report on LINK, Chainlink’s proprietary token, making a clear case why investors should exit long positions in this cryptocurrency, as the inflated price is enormously out of sync with the company’s dressed-up appearance and shaky fundamentals.
The report unveils severe discrepancies between the token’s intrinsic value of USD 0.07 and its current market price of USD 8.50, revealing downside risk in excess of 99%.
After having performed an in-depth research of Chainlink, Zeus Capital has built a very strong conviction that the company, its product, and the LINK token are a near-complete fraud.
Here are the key takeaways of the short sale thesis:
- There is abundant evidence of market manipulation with traits of classic “pump and dump” techniques, such as trading on inside information, front-running the general public, unsubstantiated claims of progress, artificial transactions to imitate adoption, bogus partnerships announcements, and any other trick in the book to drive up the price prior to dumping LINK onto innocent investors.
- The two founders behind Chainlink, are constantly selling LINK from their vast reserves into the market, as well as at a substantial discount from the current price to selected institutions over-the-counter (OTC), thus incentivizing purchasers to lock in profits by quickly selling it further, creating an inevitable downward spiral.
- LINK’s characteristics, such as the lack of a functional decentralized ecosystem, combined with recent decisions by the Securities and Exchange Commission (SEC), leave no doubt that LINK will be classified as a security token, thereby putting the whole enterprise and the investors at substantial risk of anything from dealing in unregistered securities to court orders for the disgorgement of proceeds.
- LINK’s tokenomics model is broken with an inherent conflict of interest between holders, clients, and the founding team with regards to the pricing of LINK – we have no doubt that a clash and a crash are imminent.
- The people behind the project are a handful, mostly remote, part-time consultants, focused on marketing and community building with very little professional and/or leadership experience. It begs the question of how an overdressed oracle-development project could justify a market cap in excess of $2.75 billion while purporting made-up progress with almost no IT software developers on its staff and fronting business operations out of a co-working space.
- Chainlink’s service offering is prohibitively expensive and it makes no economic sense for companies to adopt its oracle solutions. MakerDAO, UniSwap, Compound, etc. are internally-developing alternatives, which will eventually render the promise of LINK obsolete.
- The few software developers associated with the project are making frequent but cosmetic changes to the code in a never-ending product beta, while executives who previously took the bait are either fleeing the project or trying to avoid association with it.
- Three independent valuation methods suggest that the token is massively overpriced, as its intrinsic value is estimated to be in the 0.05 to 0.20 USD range at best.
Access the Full Investigative Report on Why Chainlink is the Crypto’s Wirecard “Chainlink Exposed”
About Zeus Capital
Zeus Capital is an international asset management company focused on alternative investments, market inefficiencies, and event-driven opportunities. Zeus Capital deploys capital based on an unparalleled combination of deep fundamental research, predictive analytical tools, and cutting-edge technology to derive alpha-rich investment ideas.