Our first report on a blockchain company, The Chainlink Fraud Exposed, caused tidal waves in the industry and we have been overwhelmed by thousands of emails and hundreds of phone calls of both love and hate messages, stories of fortunes made and lost, encounters with the founding team, independent research that has been conducted and much more.
One of the recurring questions is what some of the red flags are that tip off a colossal pump-and-dump scheme such as Chainlink.
Here is what we are looking for and why we think Chainlink tick all the boxes:1. Massively promotional CEO who actively looks for publicity and spends a lot of time courting investors etc and is very media savvy
Sounds like we just described Sergey Nazarov? For those familiar with the project, you should already know about Sergey’s godlike status across the community. Most certainly, if there is a dictionary of a “Massively promotional CEO” his picture ought to be there.
2. Huge CEO/Senior Management compensation package NOT tied to cash flow or Earnings but just to Sales and/or the stock/token price, creating the possibility of egregious wealth creation if the stock/token goes up a lot. Huge pledging of collateral by the CEO in return for margin loans to fund a billionaire lifestyle.
The team’s remuneration is tied to nothing else but time and rigorous dumping of LINK. Four years and everything will be vested. 1 year left.
We have received innumerable reports of San Francisco residents that a lavish lifestyle, fueled by easy investor money, has gained Sergey state-wide notoriety.
Splurging money with no earnings to show for is a clear sign that enormous amounts of LINK are being dumped on the retail which foolishly bids up any dip in the price. BTFD until the music stops.
3. Management compensation generally way out of line with peers despite notably less profitability.
Pretty self-explanatory. At current LINK levels, these guys are sitting on MORE THAN THREE BILLION OF U.S. DOLLARS!!! Don’t be the fool letting them cash out on your hard-earned cash.
4. Glossy future projections that have a habit over a long period of being proven to be too optimistic.
Need we remind anyone that there is not even a date for the mainnet launch? How about all these “partnerships” that we have never heard about after the press release hit the wire?5. Questionable product quality, ie defects (boon??) or debatable technological leads over similar products.
The most recent mid-March sell-off has exemplified that. Chainlink is slow. Expensive. Exclusive. Delivers wrong information for hours on end in the most volatile of times.6. Some evidence of self-certifying, whether it be through strange international subsidiaries or not having an Auditor or experiencing unusual and slightly sudden end of quarter surges in revenues, up to and including the last day
Audited what? These guys have lied about Google. About SWIFT. About Oracle. We expect them to announce a partnership with Apple or Microsoft soon. Or maybe Trump. Or Biden. Whoever gets to sit in the White House.
7. Unusual or unverified and large Receivables in a business where the product is exchanged for cash upfront
LINK dump all the way. What could possibly go wrong for the retail.8. Evidence that the company is existing on a shoestring, not paying Suppliers, Employees, Landlords etc.
Not directly applicable, since they got about 5 people who are not part-time remote workers - perfect to manage a $3 billion-dollar company.9. High employee turnover, especially in the LEGAL and FINANCE areas. Co-founders or Board members leaving
SmartContract’s Chief Operating Officer left. The Chief Marketing Officer is avoiding association with the project. The legal and finance team has no turnover because they quite simply do not exist.10. Aggressive pursuit via paid third parties and/or “heavies” of any critics or people who have too many questions, which in any case are “boring” and “old”
Sound familiar - mass-scale reporting of our Twitter account is a perfect example. Following a coordinated attack, our Twitter account has been suspended. Instead of proving us wrong, they are censoring us. Well done, LINKMarines. You should be proud of yourself.11. Dislike of Hedge Funds
Or anyone daring to not be buying their worthless LINK (that’s us!! :)12. Possible Narcissistic Personality Disorder on the part of the CEO. Additional points if he/she uses Twitter a lot
13. Large cabal of outcasts/weirdos/bloggers/Twitter groups who have been saying for years that everything is amiss but just get a lot of criticism because the stock keeps going up ergo they must be idiots
Literally what every LINK marine has been saying. They even threatened bodily harm to the Zeus Capital team - no person, no problem. Stalinist methods of an expat, some habits are probably DNA-encoded.
Just like Wirecard - everyone who dared to question the status quo has been tormented and even spied upon.14. Weak Board, preferably also small and ideally in hock in some way to the CEO, who therefore do his/her bidding. Helps if some of them are related physically to the CEO
If only they had a board..15. Gullible media, gullible analysts and dozens of paid bloggers who produce Price Targets out of nowhere based on “Option Value” or put another way products that are at least 5 years away from having any material impact
The Chainlink narrative in a nutshell.
Chainlink’s leadership is exhibiting typical egomaniac behavior and the lead pied-piper Sergey Nazarov is leading his community to financial ruin. Enron, Bitconnect, Wirecard. The pattern is clear. We sincerely hope you are on the right side of the fence here - either holding no LINK or being short.
Since the report was published, we see accelerated selling of LINK both on the spot and the futures markets, probably by Chainlink themselves and we maintain a price target for LINK of $0.07 per token, or a 99% drop from current levels.
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