FUD Alert! Mysterious institution releases a lengthy bearish report on "LINK," crypto community collectively defends the oracle leader.

The Chainlink project, a decentralized oracle network, has seen its token price surge by over 360% this year, with the price nearly doubling since July. The Chainlink community believes this is just the beginning of a bull market for the project. However, in recent days, some investment institutions have claimed that Chainlink is a scam project, citing substantial evidence that it is a typical "pump and dump" scheme.

Zeus Capital Releases Alarming Report

An enigmatic entity named Zeus Capital has published a report titled "The Chainlink Fraud Exposed", claiming to have conducted in-depth research on Chainlink and asserting that the project is a scam. The report alleges that the current success of Chainlink is merely a result of price manipulation to facilitate future massive sell-offs, while emphasizing a bearish outlook with a projected -99.1% drop in its token price.

Zeus Capital's main accusations against Chainlink are as follows:

• Evident market manipulation: insider trading, deliberate trading to coincide with adoption and partnership announcements.
• Centralized nodes: control over all operational nodes, undermining decentralization and node independence.
• Likely to be classified as a security: may face SEC crackdown for being unregistered, potentially harming associated institutions and investors.
• Decreasing mainnet usage: Chainlink's actual usage does not align with its price behavior, with a record 50% decrease projected.
• Fabricated strategic partnerships: partners use Chainlink merely as a supplementary data source and exploit its fundraising capability.
• High adoption costs: adopting Chainlink does not justify economic costs, and competitors are poised to eliminate Chainlink.
• Lack of professional talent: focus solely on marketing and community management, lacking leadership for a project with a market cap of nearly $30 billion.
• Falsified code updates: few developers superficially update the code, with informed senior members having already left the project.

Speculative Strategic Partnerships

The report points out that most of Chainlink's strategic partnerships are superficial, including past collaborations with the global banking telecommunications association SWIFT and last June's partnership with GCPCloud (Google Cloud), enabling interaction with Google's enterprise cloud data warehouse service BigQuery.

Months later, Chainlink's website has removed images of Google and SWIFT. Zeus Capital believes this is part of a carefully orchestrated "pump and dump" scheme, with such speculative "strategic partnerships" serving as arbitrage tools for insiders.

Note: The Google image has been removed; SWIFT still appears on the official website.

Zeus Capital emphasizes that over the years, Chainlink has released numerous project partnership press releases, none of which have materialized into core users in the ecosystem. Instead, both projects have benefited from the positive publicity generated by the partnership announcements.

Chainlink Community Dismisses Claims

This report has circulated within the Chainlink community on Twitter, with members generally dismissing it as filled with false information. They believe this is one of Zeus' tactics to spread FUD (Fear, Uncertainty, Doubt) intentionally to short Chainlink's token price.

Note: FUD stands for Fear, Uncertainty, Doubt, which refers to spreading false information in the market to influence investor sentiment and actual trading.

A Twitter user named @ChainLinkGod points out that the report is not worth attention, merely attempting to incite negative sentiments among the public. Other community members stated that besides the report being false, even the company's website is fake, and advertisements are needed for tweets to reach users.

Although the report spans sixty pages and appears professional, there are inconsistencies. Despite Chainlink's mainnet being live, Zeus Capital claims it still operates on the Ethereum testnet and is resorting to any means for the mainnet to launch as planned.

The report was released yesterday evening when the Chainlink token price was $7.95. Zeus believes its value is at most between $0.05 to $0.20 and strongly advises users to sell immediately, claiming to have maintained short positions on LINK tokens for investors.

If Zeus Capital has indeed been continuously shorting in the past, it likely has incurred significant losses. Some users mentioned that the institution might be trapped in losing positions, prompting the deliberate release of negative news, and it is currently unclear if the institution is in good standing. As per the investigation, their Twitter account @ZeusCapitalLLP has been deactivated.