Posted 9 months ago | by Ben Armstrong
Dubious Asset Management Firm Publishes Report on Chainlink
An asset management firm has shared a report affirming that the Chainlink project will be experiencing a 99% drop while experts suspect malicious intentions behind its publishing.
With cryptocurrency scams on the rise and the recent Twitter hack bringing bitcoin back to the spotlight in association with scams, the existence of dubious firms like the one publishing the report brings indications of propaganda and disinformation campaigns taking place.
To learn more about the doubts behind the legitimacy of the report, the claims it makes, the recent Twitter hack, and other news related to the crypto world, make sure to watch the latest Youtube video!
Zeus Capital: Legit Firm or Impersonation Scam?
An Asset Management known as “Zeus Capital”, recently published a document titled “The Chainlink Fraud Exposed” which provided information intending to compare Chainlink to the Wirecard scandal.
There is a Zeus Capital known as a reputable investment banking operation based in the United Kingdom, which has launched multiple startups and Initial Public Offerings (IPOs), but the same Zeus Capital didn't publish the alleged exposé.
The similarity in the names suggest an impersonation attempt but is not the only red flag when it comes to the document’s creator, as a Whois search reveals that the website was not registered until 7 months ago and there are no records of any previous publications from the firm or an important web presence.
With people being skeptical about Zeus Capital, some users have been trying to contact the firm via telephone by calling their supposed offices in London and HongKong to no avail as calls are forwarded to a voicemail, which has increased the doubt around its existence.
The Twitter account for the company has also been suspended as the result of rule violations.
The Report Claims that Chainlink is Going Down
The report indicates that the firm valuates the actual value of Chainlink’s token (LINK) around 7 cents instead of the $7.95 it had at the time of the report’s publication, a downside potential of 99%.
The recommendation of the alleged financial firm was a “Strong sell” due to the “abundant evidence of market manipulation with traits of classic ‘pump and dump’ techniques”, with the report going as far as calling the project a “classical going-down-to-zero fiasco”.
These quotes from the report suggest there could be an agenda behind the publication more than an objective report of its pros and cons, as most reputable firms would approach an in-depth analysis of any potential investment specially when practically no crypto project goes down to zero as to talk about it being “classical”
The report has a length of 58 pages containing multiple information that is correct about the project and some valid criticism, which suggests it was written by someone with actual knowledge of the crypto market and provides it with a sensation of legitimacy.
There are also reports of crypto investors receiving emails from the firm despite never subscribing or using their services, an event that is highly unlikely for reputable firms to take part in.
The report finishes with a call for all crypto whistleblowers to step up and report any indications of fraud in the crypto industry with the firm offering to act as an intermediary between them and regulatory bodies.
The Crypto Community is not Taking the Report Seriously
“Fear, Uncertainty, and Doubt” (FUD) is a term used for a disinformation campaign strategy that takes place in the marketing, public relations, and propaganda industry intending to disseminate negative perceptions of a target.
This seems to be the case with this report as the intention of disseminating false information, sensationalism, and doubt around ChainLink by mixing it with facts is a classic technique in this type of campaign.
Timothy Peterson, an Investment Manager for Cane Island Alternative Advisors, Tweeted about the report:
“Looking at the Zeus Capital website & #ChainLink report ($LINK): Can't be 'independent research' since they have an active position. Claim to be in NY and London but none of the SEC/FCA required disclosures appear in their report”
Despite the publishing and sharing of the report, Chainlink has not experimented with any steep drop in its value as it is only -2.9% in the last 24 hours with the value changes being consistent with those in the last days.
For now, it looks that the report has not had a significant impact on Link chain or crypto enthusiasts’ opinion on it but there are still plenty of discussions around the legitimacy of the report.
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