ChainLink: A Great Opportunity? Why Team dumped Tokens
ChainLink, the most famous decentralized network for using oracles is looking cheap. But should you buy?
Despite Chainlink being redflagged due to "the team dumping tokens", the majority of these narratives created among these events are pretty much flawed.
Quick Technical check of the Diluted Market Cap shows ChainLink entering levels below the weekly 50-EMA, which only happened twice in the past, prior to a recovery:
On the current chart, price is hitting a low boundary of the Fibonacci channel on the logarithmic chart.
In the midst of 2020 there were rumours of Chainlink developers dumping their LINK tokens, creating distrust with holders.
This also happened in 2019, creating a sell-off worth almost $0.5 billion dollars:
Half a Billion Wiped Out as Chainlink Devs Dump
At the time, it seemed like the devs are dumping their tokens because of some "insider information" knowing the project would fail or doesn't seem to have a grand future.
These conceptions are anything but true & is hurtful for the reputation of Chainlink.
These tokens are being used to bootstrap and subsidize the growth of the most widely used oracle network.
Reinvestment into a network's growth is a good thing, because projects that don't, stagnate and die.
The token movements happened for a number of initiatives including:
In short: The dumping of tokens have various benefits for the project and indirectly contributes to the growth of Chainlink.
As of today, 12.5% of tokens remains in wallets owned by the Chainlink Team.
See: Etherscan balances
The last time the Chainlink Team dumped tokens out of any of these wallets was 142 days ago for 500,000 LINK: https://etherscan.io/token/0x514910771af9ca656af840dff83e8264ecf986ca?a=0xbe6977e08d4479c0a6777539ae0e8fa27be4e9d6
Oracle functionality is crucial for any Blockchain developer as randomness can be guessed in decentralized applications. In order to use the oracles by Chainlink you need LINK in the deployed contracts address, for example 0.5 LINK is the minimum to use the VRF Generator by Chainlink. When the smart contract executes a function on an oracle, LINK is used as a fee in the transaction. This creates demand for developers who wish to build decentralized applications with real randomness and improved security.
Hopefully this article was of value to you & thank you for reading!
Despite Chainlink being redflagged due to "the team dumping tokens", the majority of these narratives created among these events are pretty much flawed.
Quick Technical check of the Diluted Market Cap shows ChainLink entering levels below the weekly 50-EMA, which only happened twice in the past, prior to a recovery:
On the current chart, price is hitting a low boundary of the Fibonacci channel on the logarithmic chart.
In the midst of 2020 there were rumours of Chainlink developers dumping their LINK tokens, creating distrust with holders.
This also happened in 2019, creating a sell-off worth almost $0.5 billion dollars:
Half a Billion Wiped Out as Chainlink Devs Dump
At the time, it seemed like the devs are dumping their tokens because of some "insider information" knowing the project would fail or doesn't seem to have a grand future.
These conceptions are anything but true & is hurtful for the reputation of Chainlink.
These tokens are being used to bootstrap and subsidize the growth of the most widely used oracle network.
Reinvestment into a network's growth is a good thing, because projects that don't, stagnate and die.
The token movements happened for a number of initiatives including:
- Subsidizing oracle networks to bootstrap a secure network of nodes
- Paying out community grants and blockchain integration grants
- Acquiring new technologies and funding security audits
- Hiring more devs to create software like OCR that lower gas costs by 90%
- Hiring more engineers to increase the rate integrations can occur
- Hiring more researchers to formalize the economics of staking
- Partnerships
In short: The dumping of tokens have various benefits for the project and indirectly contributes to the growth of Chainlink.
As of today, 12.5% of tokens remains in wallets owned by the Chainlink Team.
See: Etherscan balances
The last time the Chainlink Team dumped tokens out of any of these wallets was 142 days ago for 500,000 LINK: https://etherscan.io/token/0x514910771af9ca656af840dff83e8264ecf986ca?a=0xbe6977e08d4479c0a6777539ae0e8fa27be4e9d6
Oracle functionality is crucial for any Blockchain developer as randomness can be guessed in decentralized applications. In order to use the oracles by Chainlink you need LINK in the deployed contracts address, for example 0.5 LINK is the minimum to use the VRF Generator by Chainlink. When the smart contract executes a function on an oracle, LINK is used as a fee in the transaction. This creates demand for developers who wish to build decentralized applications with real randomness and improved security.
Hopefully this article was of value to you & thank you for reading!