Conference Pumps Chainlink – Trustnodes

Conference Pumps Chainlink

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Chainlink pumps, July 2020

Chainlink has suddenly jumped to a market cap of close to $3 billion and is nearly overtaking litecoin to now tenth position in crypto rankings.

The ethereum based token has doubled in the past week and is up some 4x since March, rising from about $2 to now $8 as can be seen above.

It has also seen significantly increased volumes of $1.6 billion, up from the usual $300 million in June.

The recent straight up line appears to be due to the announcement of a conference to be held in August.

They expect speakers from Microsoft, Oracle, ConsenSys, Synthetix, Aave and a lot more, with this seemingly being more a somewhat general defi conference but with a Chainlink focus.

The rise of decentralized finance (defi) has also propped up chainlink which is kind of a template to connect smart contracts with centralized APIs to increase robustness as instead of getting say the price from one exchange, the chainlink nodes can feed the price from many exchanges.

The need for more than one price feed was shown in February when derivatives decentralized exchange (dex) bZx saw the price of wBTC plunge due to a flashloaner shorting it before then spot selling it on Uniswap which apparently was the only one that fed into Kyber’s price.

bZx used only Kyber for the price setting of its derivatives, and therefore to manipulate it was somewhat easy for the skilled coder.

bZx then announced they will use chainlink, but some call this project just a json parser as conceptually there’s little reason why the dapp can’t set itself multiple API price feeds to the smart contracts.

Having the skills and knowledge to do it, however, can be another matter. Thus just delegating this important aspect to another project may well be an easy choice for some dapps.

For that they have to pay the link holders with link tokens which thus conceptually gives it some value, but 65% of these tokens are held by the chainlink team.

That gives them considerable potential influence over the price as shown last year when they were accused of crashing it by selling significant amounts.

Yet instead of that sending it to the wilderness, it appears to have led to only a pitstop with this much shilled token on /biz/ not only recovering, but doing so with a bang.

And why not. Jason Parser is a great guy, but busy dapp devs may well let specialists deal with Oracles as nutshelled in our interview last year with a Chainlink dev.

Also this token has been one of, if not maybe the only one, to keep at least some in a party mood during the bear years of 2018 to ??? well hopefully 2020.

But it is also a token that can fall just as quickly as it can rise, especially if the devs suddenly need more money for that Jason Parser guy.

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