Chainlink (LINK) is one of the hottest crypto projects in years. It’s been up as much as 1,000% this year and has attracted a large community of followers.
I haven’t bought in or recommended it. And I don’t plan to. I’ve spent a lot of time evaluating crypto projects. I’ve made some good calls, made some bad calls, and learned some lessons. And from my perspective, I don’t believe chainlink’s ascent has been very “organic.”
Take a look at some of the Twitter search results for chainlink keywords. Here they are for chainlink bullish. Compare that to the same search for bitcoin bullish on Twitter. There’s a huge difference in quality of the results. Bitcoin’s results seem logical, reasonable, and I see some notable personalities making good arguments. Chainlink’s results seem very… artificial and low quality.
On top of this, chainlink is showing signs that it may have peaked. Cointelegraph had a good article this week about how LINK has corrected recently — on top of insider selling.
Chainlink’s native token had fallen over 60% from its peak of $20 mid-August, bottoming out at crucial support levels around $7.50 on Thursday, September 24. The six week downtrend appears to have been accelerated by multiple sales of large chunks of LINK from what UK crypto publication Trustnodes reports is the dev address.
This ‘dev address’ has been selling batches of 500,000 tokens, worth approximately $4.8 million per batch at current prices, regularly over the past six months.
The developer/insider sales aren’t a huge amount as a percent of the overall market cap. But they’re still significant.
I may have just “missed the boat” on chainlink. But there’s simply something about it I don’t fully buy into. I don’t think its oracle model is as much of a sure thing as its believers think it is. Time will tell.