TechFlow News — Today, Zeus Capital released an article shorting LINK, calling the LINK ecosystem a modern version of the Dutch tulip bubble, citing the following reasons:
1. The price of LINK should be driven by node operators through staking or selling, but in reality, it is controlled by SmartContract, the company behind Chainlink.
Unlike Ripple, which limits the number of XRP released each quarter and regularly reports token sales, SmartContract has complete discretion over the sale of 300 million LINK tokens.
The report claims that on-chain Ethereum data shows SmartContract regularly transfers 500,000 LINK from developer addresses, routing them through a series of intermediaries before depositing into Binance.
2. LINK is overvalued, using equity-like rewards instead of dividend yields. The actual value of the LINK token lies between $0.25 and $0.50.
3. The upfront investment for a Chainlink node per computer is less than $300, with daily operating costs under $0.16. Assuming seven such computers are required, the total daily operating cost would be $1.11.
Assuming the node can handle 150 data retrieval requests per day, with each job costing 0.16 LINK, a node operator could earn 12.5 LINK per day. When comparing revenue to cost, the true value of LINK should be less than five cents.
4. In summary, the current price of the LINK token is the result of irrational hype and a series of market manipulations. Chainlink’s GitHub currently contains approximately 200,000 lines of code—valuing each line at $17,500 based on its current market cap.
One month ago, Zeus Capital published a 60-page short report on LINK. During the subsequent market rally, Zeus Capital suffered $17.53 million in losses due to being short on LINK.
