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 CoinTelegraph story link 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 LLP 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 LLP 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”. 

EllioTrades link:      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.

Impact of the Zeus Capital 'ChainLink Fraud Exposed' report

Unfortunately, The Zeus Capital FUD report appears to have negatively impacted the ChainLink price.   July 15 was the date the report started circulating while Chainlink was in the process of hitting an all time high of $8.92.  At the time of this article ChainLink was trading at $6.94 after hitting a low of $6.50 (~26% loss).   While Chainlink has been on a tear and was probably due for a pullback; the potential for a scandal scares many investors.   In fairness this asset class has had too many scandals, so investors will be quick to exit based on this Fear Uncertainty and Doubt report.

ChainLink Summary

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. 

Recently ChainLink has reported many significant partnerships and is a key player the new and very hot DeFi applications.    The Google Cloud Platform (with blue checkmark certification) tweet is a strong vote of credibility

Has the Zeus Capital LLP report provided a buying opportunity for ChainLink ?

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

• Friends listed on its website, do not agree with the narrative Zeus Capital is reporting that ChainLink is a scam
• There is no named person and or spokesperson for Zeus Capital. 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.

• No strong 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,”   Quantify Crypto was able to find many stories and images showing SWIFT and ChainLink are working together.

Unfortunately, whoever wrote the Zeus report may have shorted ChainLink made money.   At some point this short position will have to be closed when the price of ChainLink does stableize and starts going back up.

The platform Quantify Crypto 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. We are a new site, please check us out and let us know what you like and do not like about the site.

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 small positions of Bitcoin and Chainlink and other cryptocurrencies.