Roughly $600 million in the market value of LINK tokens has been erased after a series of bulk sales triggered in July. Following a 4chan media blitz conducted by the Chainlink development team, valuations have fallen by nearly 60% (after reaching highs above $4.80 on June 29th).
ChainLink Market Value Evaporates
After Chainlink raised $32 million in its 2017 ICO, crypto analysts were already criticizing its skewed distribution metrics. Out of a total of one billion LINK, the development team held 650 million Links while allowing the 350 million remainder to circulate throughout the market. Despite the questionable foundation created by these unfavorable scenarios, ChainLink valuations rose by more than 3,710% in less than two years.
4chan Media Blitz Inspires FOMO
However, large portions of these gains accumulated after an apparent marketing blitz on 4chan’s /biz/ board was conducted earlier this year. In a matter of weeks, ChainLink valuations experienced a ten-fold rally that caught many in the market off-guard, with TrustNode asking some tough questions:
For months now 4chan’s /biz/ could easily be mistaken for /chainlink/, leading one to dismiss the project. The astronomic recent rise of about 10x in weeks could also lead one to just call it a 4chan pump, but is there actually something here?
Shortly thereafter (July 6th), the Chainlink development team issued a statement that should have been viewed as an ominous warning signal for any crypto investor with bullish exposure:
We do sincerely appreciate our community’s continued support and understanding as we expand the number of people working on Chainlink, and we will of course do our best to ensure that our expansion plans are accomplished responsibly, carefully managing the company’s resources, capital and LINK.