Binance Smart Chain integrates Chainlink oracle, does this mean lack of confidence in their investment in Band?

Binance's "Binance Smart Chain" announced the successful integration of Chainlink's oracle solution. Chainlink's services will provide trusted data sources for applications on the Binance Smart Chain and pave the way for expansion into the DeFi field. However, this collaboration has raised questions about Binance's confidence in Band Protocol, in which they have invested. Is this indeed the case?

Binance Smart Chain Integrates Chainlink

According to an official announcement released by Binance Exchange yesterday, the "Binance Smart Chain" testnet has successfully integrated Chainlink's Oracle solution. This provides a better infrastructure for development teams or developers who wish to build DeFi protocols on the Binance Smart Chain in the future.

The Binance Smart Chain is a smart contract blockchain created by Binance Exchange, offering programmability compatible with the Ethereum Virtual Machine (EVM). According to the official statement, the Binance Smart Chain enhances the smart contract functionality to support compatible dApps while maintaining high settlement speeds and low transaction costs of the Binance Chain.

Chainlink is currently the most mature and well-known decentralized Oracle solution in the market. Since blockchains operate as data silos, when smart contracts require external data, Oracles act as middleware to provide real-world data to smart contracts. Oracles are considered essential infrastructure for blockchain applications. The integration of Chainlink will enhance the security and reliability of applications in DeFi, cryptocurrency payments, and asset management on the Binance Smart Chain.

In the announcement, Binance stated:

"Developers can use Chainlink's aggregation of data from multiple Oracles (nodes) and multiple data sources to create a trusted data source securely delivered to smart contracts. This provides end-to-end security for decentralized applications that use external data."

Did Binance Abandon Its Invested Project?

After the news broke, many users' initial reaction was, "Binance collaborates with Chainlink despite not using Band Protocol (Binance's 9th IEO project) it invested in?" According to an official announcement by Binance in November 2019,Band Protocol, in addition to providing price data for DeFi projects on the Ethereum chain by integrating Binance Exchange's API, Binance was planning to use Band Protocol to achieve "atomic swaps" on the Binance Chain.

Soravis Srinawakoon, Co-founder and CEO of Band Protocol, expressed in the announcement:

"We are excited to collaborate with Binance to enable DeFi through our OpenAPI. This allows everyone to access quality price data for over 600 cryptocurrencies on Binance, integrated into their decentralized applications. The exciting part is that since our platform can connect to any API online, this will provide us the opportunity to create more financial and enterprise use cases."

Chainlink Negative Report

Chainlink's token price has been a focus of attention this year, rising from $1.76 at the beginning of the year to a peak of $8.89, a surge of over 400%. However, not everyone agrees with the success of Chainlink in terms of value. In a report in mid-July, an entity named Zeus Capital published a report titled "The Chainlink Fraud Exposed," claiming to have conducted in-depth research on Chainlink and believing the project to be fraudulent. The current glory is allegedly to boost prices for future massive sell-offs, while emphasizing a bearish stance of a future -99.1% drop in token price.

Subsequently, there were reports that the report was led by the lending platform Nexo, which collaborates with Chainlink. However, both Chainlink and Nexo have not responded to these allegations.