Debunking Zeus Capitals's Chainlink FUD attack

ChainLink Summary

Partnerships are important for any company.   This is especially true for Chainlink.  Chainlink is a decentralized network of oracles for the blockchain.  Most of you probably understand what a decentralized network is, but what is this oracle thing?  

An oracle is a bridge that connects a blockchain network to the regular internet, similar to an API.  Ethereum has long promoted that their smart contracts are able to program any application.  This is only possible if the smart contract can import and use external data.  Without the ability to utilize off chain data, smart contracts are limited in functionality to creating and transferring tokens, this makes Chainlink and other oracles essential if Ethereum is to expand its use cases beyond a platform to send and receive tokens.  Chainlink is currently a token on Ethereum, however its oracle technology can be utilized for any blockchain that is looking to use off chain data for its smart contracts. 

ChainLink lists over 230 parnerships on its website all with a verification link.  This impressive list includes Google, Oracle, Swift, Gartner, Dapps and many leading cryptocurrencies.   They are a key player in the new and very hot DeFi applications marketplace.    The Google Cloud Platform (with the blue twitter checkmark certification) is a strong showing of credibility.

The Friends of Zeus Capital?

On a website it is very easy to put a list of “Friends” and add associated links with titles to give a perception that other legitimate sources have a co-operative working relationship.   The list of friends on the Zeus Capital LLP homepage is impressive and diverse.   However, do the “friendship” links provide support or disagreement with the Zeus Capital thesis that the cryptocurrency Chainlink is a pump and dump scam?

Four of the first five “Friends” on the list are leading cryptocurrency new sites.    Odd on this list is “Venture Beat” which has a focus on gaming, in fact they do have an article on their website about Chainlink being a pump and dump (more on that later in the article).   The other 4 sources do not have an article stating that they view the Zeus Capital Chainlink Fraud Exposed  report as being viable.   The news link for the CoinTelegraph story describes the accused association about Nexo Finance being behind the Zeus Capital report.   I did a quick search on the CoinDesk and TheBlock websites, But I could not find a story about Zeus Capital on either site.  

CryptoNews did have a story about the Zeus Capital report but it was far from an endorsement,  referring to the Zeus Capital website the CryptoNews story states: ‘Zeus Capital claims to be an “asset management and research firm,” although its website appears to be very low on content – hosting very little other than the aforementioned report.’

The most laughable friend inclusion is from YouTuber EllioTrades FUDTV, the video headline is “CHAINLINK SCAM EXPOSED! DO NOT BE FOOLED! …”   While the headline sounds very supportive of the Zeus Capital claim, it is clear they did not actually watch this video.   This is a great video that looks in detail at Zeus Capital report (8 minutes in) which he states “Chainlink got hit with a huge, what I am calling a Scam … This is an opportunist attack here on Chainlink”.    The video goes in great detail highlighting the suspect elements of Zeus Capital report while providing evidence that Chainlink is not a scam.   My favorite line in the video “Never believe a short seller”.  

https://www.youtube.com/watch?v=1YWq5ZRbMlg

Also, on the Zeus Capital friend’s list is Venture Beat, with an article that tells of suspicions trading of Chainlink that occurred in late June and early July of 2019.   Venture Beat makes references to AnChain.ai data in the article.   However, later in the article it does state, “AnChain did note the possible impact of the CoinBase effect in its report. In a follow-up email, AnChain.ai said that the pump-and-dump data appears to precede the CoinBase debut of the Link token.”   In the opinion of Quantify Crypto, there is nothing in this story and report that links Chainlink founders or employees to this trading activity.

Key conclusions to the Zeus Capital LLP report

In the opinion of Quantify Crypto, the Zeus Capital LLP research report is weak on evidence that Chainlink is a scam.   The Zeus Capital LLP itself leaves many questions,

• Friends listed on its website, do not agree with the narrative Zeus Capital LLP is reporting that Chainlink is a scam
• There is no named person and or spokesperson for Zeus Capital LLP. Always be leery of anonymous sources, which this report clearly is.
• The name Zeus Capital LLP is very similar to the name Zeus Capital LTD a valid firm.

• There is no evidence is in the document that Chainlink in fact is a scam. Many claims are made without providing factual support.
• The Zeus Capital report states on page 43 of its report: “Another grossly misleading speculation from Chainlink has the “partnership” with SWIFT. However, it turned out that none of project’s current integrations are on top of the SWIFT connection to date,”

Just performing a few hours of research has shown the Chainlink had many significant working projects with very real partnerships.   An attempt by Zeus Capital to show it has any friends, positive testimonies and partnerships has been very weak.   I will end a response of Marc Zeller of Aave who is listed as a “Zeus Friend”

Alexander and John Barry are a father and son team that created the platform QuantifyCrypto.com which provides live cryptocurrency prices, technical analysis, news, heatmaps and more. Our flagship product is the trend algorithm, designed to be on the correct side of significant cryptocurrency price moves.

None of this is meant to be financial advice and I do not have any financial expertise. Although I worked at the New York Stock Exchange for over 23 years, it was as a developer supporting computer systems, not as a stock trader.

Full discloser: I do own Bitcoin and Chainlink along wtih some stock positions.