Half a Billion Wiped Out as Chainlink Devs Dump – Trustnodes

Half a Billion Wiped Out as Chainlink Devs Dump


Chainlink team, August 2019

Some $600 million worth of paper value Link tokens have vanished amid what appears to be continuous selling by the Chainlink team.

The 2017 ICO-ed Chainlink token, which back then raised some $32 million, has a very skewed distribution where the team seems to have kept some 650 million Links, with just 350 million currently circulating out of a total of one billion.

What appears to be a marketing blitz began earlier this year, with 4chan’s /biz/ becoming almost unreadable amidst all the Link “spam.”

A 10x rise in weeks made us wonder whether there is something here, so leading to our surface review of this project on July 3rd.

“I’m financially ruined,” someone commented in that article ten days after it was published. “How is this legal???” asked someone else.

On July 6th, the Chainlink team published a statement that to anyone with a brain basically said something like: this has gone up enough now, dump. Or in their words:

“We do sincerely appreciate our community’s continued support and understanding as we expand the number of people working on Chainlink, and we will of course do our best to ensure that our expansion plans are accomplished responsibly, carefully managing the company’s resources, capital and LINK.”

They were basically telling the public they will begin selling some of their huge holdings ostensibly to hire more people like a “Technical Documentation Writer” despite having raised $32 million less than two years prior.

Chainlink dump, August 2019
Chainlink dump, August 2019

The above chart has been shared on social media, so we haven’t quite verified it, but we had a look.

According to etherscan data there have been 14 chunks of 700,000 Link sellings for a total of 9.8 million links so far, or an estimated $30 million.

Chainlink selling, August 2019
Chainlink selling, August 2019

For some 40 days Chainlink seems to have been selling, by going through a small chain of addresses to end on Binance, this huge amount of funds.

In addition, there is something extremely interesting because we have never seen this before or at least not on a Binance chart:

Chainlink Binance chart, August 2019
Chainlink Binance chart, August 2019

That last big green candle is 29th of June. Then we have this kind of proportional wicks. Price oscillates wildly, but kind of settles on what presumably is the “real” activity.

This was happening before the big green candle as well and it’s just… it doesn’t look natural. After the green candle, it sort of looks ridiculous.

Presumably the aim there is to foment fomo, or hope. Something like o look, it’s going up – for maybe a minute.

That can perhaps be seen best in the second candle from the bit we have emphasize where that green candle has a wick that kind of returns to the previous price, but the real direction is down.

That then continues as price falls, with trading volumes on the 30th of June at quite an incredible $863 million for a token that then had a market cap of $1.4 billion.

Such trading volumes are now at just $70 million while the market cap is at about $850 million.

Meaning there may have been some shenanigans here, with the project itself called by some as a Json Parser.

That being it’s just a way to call to an API or have an API read from a smart contract with the ostensible innovation here being that you can go through many nodes/servers that do that parsing for you, instead of you just connecting yourself to the many or the one API as you want.

The project doesn’t quite address the veracity of API’s data, the entered data. It just focuses on ensuring that the data does in fact come from an API and that data has not been changed so you can be sure it is whatever the API says.

The problem is obviously whether the API itself has the correct data, with API here being basically people entering information and so “broadcasting” them through the application programming interface.

The problem is obviously ensuring the veracity of the entered data themself. This could potentially be solved by having more than one data provider, but even a scriptkiddie can do that himself.

So Chainlink, from what we gathered anyway, appears to be mainly kind of a template, or middleware as they call it, that allows you to DIY smart contract connections to APIs.

You’d think if you can code a smart contract, then you wouldn’t need these chainlink intermediary servers to get the data from multiple APIs for you as you can just connect directly and do it yourself, but this could potentially evolve to be a bit more useful by allowing people to be the API, instead of being just some sort of conductor.

That however might be a bit ahead of its time as there’s the scalability issues and all the rest, so maybe leading to this “hiring” of “technical writers.”

Copyrights Trustnodes.com

Comments (38)

  1. After these projects come to fruition, there are investors that feel they missed out on a sure thing and they fomo. The taoists call this “going all in at 4”.

  2. What a dumb article. Reads like a kids school project.

  3. Pump up to 3$ then 5$

  4. Didnt read, not selling.

  5. Take this article down immediately, or there will be consequences.

    1. A $4 link bag holder has been spotted lmfao fucking cuck


  7. Sirs this is bed fud you fuck your motherfucker ok

  8. This article is so bad. It sounds like you just copied all your FUD from biz without really knowing anything about the tech or the project.

  9. have sex incel

  10. Very miss leading FUD piece. He starts off saying ” $600 million worth of paper value Link tokens have vanished”. This is not true. The project has sold only 30 million USD more worth of tokens, a very small responsible amount. the coin has a market cap of nearly a billion and the DEV crew has sold only 30 million, not much.

    The article then tries to belittle the value of oracles and Chainlink, “appears to be mainly kind of a template, or middleware as they call it,”

    well you could say the invention of the airplane is just a metal box that flies, or the internet is just cables connecting each other as well.

    Lastly the author does not state weather or not he is short or long chainlink (no disclaimer), which I think its clear he and his buddies have shorts opened, and then when they want to go long out will come the “Chainlink is awesome article”

    When you see articles like this it means buy, buy, buy, if they need FUD to help move the price down, your in the right coin!

  11. meanwhile the link selloff continues as weary chainlink bagholders trudge through the land of empty dreams and promises leaving a trail of lost money and opportunities behind. Occasionally on this trail of tears a figure can be seen weaving off weak with a skeleton bent from the weight of link bags and collapses, raising their finger in their dying moment to press the sell button. The others trudge on past the corpse of the once proud linky too lost in pain and fatigue to even notice the corpse. No conference now. No hope. Only death and bags. Death march of the linkmarines lead by general wojack.

  12. If Rory’s comment hasn’t made it clear, just know, you can’t dodge the Hodge.

  13. The article is spot on. Chainlink unraveled in a way that was more scammy than some of the most famous crypto exit scams since 2014, like Confido, Prodeum and VeChain.

    Honestly, withholding 70% of the entire premine with no obligations or performance holdbacks? What were you people thinking buying this? The absolute state of crypto “investors”…

    1. Ripple held back 70% of the premine and only years later did they promise (and deliver) to lock up the coins in a smart contract (at that point ripple pumped), ripple is a top coin now. From what I can see ( I am in Link ) link is selling the coins in a responsible and normal fashion, only 30 million dollars out of 1 billion has been sold.

      I bought in at 2 dollars after the big pump and have enjoyed pumps to 2.70 several times. If you bought the top your an idiot , its not the DEV teams fault, its yours, HODL your coins and ignore FUD like this.

      1. Ripple is hardly the example of a responsible project lol

  14. Its over…


  16. Welcome 4channers. This is open comments space (totes anon if you wants), bit like your chan but ples decorum. No you know… gud boy appearance, not the other one cus we no like delete comments and we do cans delet any we likes so.

  17. /biz reporting in. I fucking kek’d too hard on this

  18. Very interesting article. I will definately keep that in mind.


  20. anyone still holding is a clown honk

  21. Ting, ting… ahem i have an announcement to make, if you would just gather round…

  22. “Meaning there may have been some shenanigans here, with the project itself called by some as a Json Parser.”


    1. I was thinking that this one was a joke but in hindsight it was way more obvious than my low IQ could handle.

  23. i think this jason parser guy might have killed epstein. i’m not sure but-
    oh god. hillary clinton just flew over my house in a helicopter. someone please send help.

  24. You are a filthy gentile not worthy of caressing my feet. You’ll never make it.

  25. How do I get a refund of my time for reading this joke of an article?

    1. You apply at the call centre.

  26. Suckers, I sold pretty close to the top…bought another house….thanks chainlink….next stop XRP THE STANDARD.

  27. “The project doesn’t quite address the veracity of API’s data, the entered data. It just focuses on ensuring that the data does in fact come from an API and that data has not been changed so you can be sure it is whatever the API says.”

    So the coin doesn’t do something it was never designed to do? Ok.

  28. SEC need to investigate this one for sure. This is not acceptable in any way!

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