ADVERTISEMENT

Chainlink accused of being a fraud in dubious report

  • A dubious report published by Zeus Capital accuses Chainlink of being a fraud.
  • The report predicts a collapse of Chainlink due to the closure of its operations and the alleged rejection by the community, and was aimed at crashing the LINK price.

A 59-page report published by fake research firm Zeus Capital is accusing Chainlink (LINK) of being a scam. The report is titled ‘The Chainlink Fraud Exposed – An Investigative Report on Why Chainlink is the Crypto’s Wirecard’. Initially the fake research firm sent the report via an email. Then Zeus Capital created accounts on the social networks Twitter and Reddit along with a website.

The aim of the report seems to be to manipulate the price of LINK and turn the current uptrend into a downtrend. In the last few weeks, Chainlink has achieved one of its best performances in the top 10 cryptocurrencies, reaching new historic highs in its price. Therefore, a sudden drop would have given significant gains to the person or entity betting on the crash of LINK’s price.

At the time of publication, the fake research company has deleted its social networks, but keeps the website active (www.zeus-capital.com). At this point the report is still online, but for security reasons it is advisable not to visit the website. Furthermore, some members of the crypto community tried to contact Zeus Capital. However, the sole research company by that name is based in the UK and stated that it does not work with cryptocurrencies.

The report’s allegations against Chainlink (LINK)

The report has the appearance of a legitimate document and on the surface seems to follow the required methodology of a serious investigation. But its argumentation focuses mainly on the criticism of Chainlink’s policy. Furthermore, as mentioned, the report seeks to get investors to set up a short position that would benefit the creators of the report:

We believe that the house of cards is about to collapse as operating activities on the network are fading, the pool of potential clients is quickly depleted, and the crypto community is realizing who the fool on the table is… Based on our findings we have opened a short position in LINK and recommend you do the same with a target price of USD 0.07 and potential upside of nearly 100%.

According to community member Lil Bubble, the report came to him via an email address linked to the NexoFinance platform. Therefore, according to community speculation, Nexo or a NexoFinance employee is the main suspect as the author of the report.

The accusation is also supported by further investigations into the website of the fake research firm Zeus Capital. In reviewing the contact address on the website’s code, community members discovered a reference to “nexofinance”. This account is also used on the Nexo platform website. However, Nexo co-founder Antoni Trenchev stated the following:

Nexo has nothing to do with it and its author is trying to insinuate such a connection through false flag stuff that Nexo is somehow involved.

The co-founder of Nexo also revealed that they hired a team of investigators to get to the bottom of the matter. The investigations are still in their early stages and, for now, any conclusions seem rushed.

About Author

Avatar

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

Comments are closed.

Libertex ribbon

Send this to a friend