It has been said, or hoped, that the next altcoin season which may be already brewing, will be predicated on performance and the building of top-class cryptocurrency and blockchain projects. This was suggested by Binance CEO Changpeng Zhao, and the big winners so far have been the cons showing good work.
The likes of Cardano and Chainlink as two examples show how projects moving well through their road map are being rewarded with booms in their token price. However, the problems associated with the cryptocurrency ecosystem still persist and it looks like greed may well rule the roost still.
This can be seen in what looks to be happening with Chainlink and its successful LINK token, The coin has seen a 370 percent surge in value this year, but it appears that the trading space is not happy with just seeing this token grow — they are getting the knives out and looking for a fall.
The Big Short
An interesting campaign has made its way into the cryptocurrency space that sees a company called Zeus Capital looking to get a report out that claims Chainlink is a scam company in the same vein as Wirecard and that people should not be trusting them.
If this report was to gain much momentum and be widely reported, regardless of its truth or not, the price of LINK could take a massive fall and if the right people had shorted the price at the right time, there would have been huge sums of money to be made.
Overall, it appears that the feeling around this report is that it is not too based in fact. And there are even links back to a crypto competitor of some sorts, NEXO. However, NEXO denies the links.
Still, the point of this is that while Chianlink has made some impressive gains as a company and appears to be driving the cryptocurrency and blockchain space, there are still some that are hoping that it faces a hurdle that will scupper the gains seen by LINK.
Why Chainlink matters
LINK has become one of the most talked-about altcoins. In July alone, the now ninth-largest crypto by market cap has gained close to 80%, with blockchain analytics firm Santiment identifying LINK as its top-ranked emerging cryptocurrency.
LINK has been tied to part of the case for an altcoin season, but this also has to do with its power in the emerging DeFi space. As the DeFi market continues to experience significant growth, the need for decentralized oracles for smart contract protocols, like the type offered by Chainlink, becomes even more important.
But, even with this good work, and the potential it constraints, Chainlink still has many people saying the rise in the price of the coin is a speculative bubble. They may well be right, but there is enough evidence that this is no DOGE pump.
The problem is that people are now looking for the price to fall and are hoping to cash in on the short rather than support the project. It is not only because the project itself is the only one worth supporting, it is a problem because this is the cryptocurrency mindset still.
Crypto started as a get rich quick idea in the mainstream and the potential was shelved away. Now that potential is starting to be realised, the major drive is still more based on making money than making changes in the blockchain space.