ChainLink seems to have impressed the longstanding investment rating service Weiss. The company’s cryptocurrency-focused division has been tirelessly straining the project for the past week.
Numerous tweets in the last 24 hours dedicated to the digital asset speak for higher LINK prices.
The company’s investment analysts have even made an incredibly optimistic price forecast for the decentralized oracle network. However, they also neglect to mention possible shortcomings in the project.
Seasoned investment advisors are crazy about LINK
Weiss Crypto Ratings is a division of Weiss Ratings. Weiss Ratings was founded in 1971 and provides data to help investors make informed financial decisions. Today the company provides information on more than 40,000 stocks, mutual funds and ETFs, as well as security ratings for banks, credit unions and insurance companies.
The Crypto division was founded in 2018. The company humorously claims to offer investment advice without prejudice to other advisory firms.
In a FAQ it is written that Weiss Crypto Ratings reviews all projects without accepting any compensation from its organizers. It is further claimed that it is dedicated to serving its users rather than the companies it reviews.
Unlike most new cryptos, #Chainlink already has robust and growing adoption among legions of real-world users. This is one of the most important indicators we look for when looking for cryptos to invest in.
– Weiss Crypto Ratings (@WeissCrypto) June 17, 2020
However, recent coverage seems a little skewed. In the last eight days, the rating agency LINK has advertised five times out of a total of 11 tweets on Twitter, all of which were very optimistic.
The remaining tweets only delivered general news from the cryptocurrency industry. One was about an update of the cryptocurrency storage conditions for FinTech company Revolut.
Another was dedicated to the discussion about blockchain and international travel after COVID-19. Some others have advocated Bitcoin in a world of rapidly growing fiat money.
Interestingly, Weiss has only singled out Bitcoin and LINK in the last few days. In fact, as part of its overt LINK Shill campaign, the agency admitted that:
“The vast majority of the 2,647 cryptocurrencies listed on CoinMarketCap.com only trade in hopes and dreams.”
Of the five Pro-LINK tweets, four were published in the last 24 hours. Perhaps most notably, the inclusion of an actual price prediction for emerging crypto:
“We expect #SHORTCUT could trade up to $ 20. That is almost five times what it is being traded for today. Investors would be smart to keep LINK on their radar. “
… But why so bullish?
It’s hard to imagine how Weiss could get any more bullish at ChainLink. In an in-depth article on the digital asset on June 10, the company explained exactly why it is optimistic about LINK’s future price development.
Investment analysts Bruce Ng and Juan M. Villaverde argued that demand will increase thanks to the increased adoption of smart contracts. They described LINK as:
“Little known crypto at the sweet spot of the information explosion”
The authors refer to smart contracts as “the future of crypto”. Given that LINK represents a kind of bridge between blockchain platforms and real data sources, they expect the acceptance of LINK to increase in parallel with that of Ethereum and other intelligent contract networks. They write:
“[ChainLink is] the real data provider for smart contracts. All fees for these services are payable in LINK. “
Ng and Villaverde point to the explosive growth of the DeFi sector in recent years as a driver for smart contract adoption. The applications at the center of the decentralized financial revolution are based on intelligent contracts. They write:
“Chainlink is the fuel that smart contracts run on. And as the number of smart contracts grows exponentially, the demand for Chainlink will explode. “
Weiss identifies several platforms that are expected not only to keep LINK relevant, but also to be in high demand. The number of decentralized apps based on real data sources continues to grow.
These include Ethereum, Tezos, Fantom, Solana, Icon, HPB and Zilliqa. All of them are using or planning to use real data through ChainLink.
It’s not just Weiss Shilling LINK …
Cane Island Alternative Advisors argue in a similar way. In a recent report dated May this year, the investment advisory firm wrote:
“We see it as the only top 20 token with a broad, adaptable business application that can be easily explained to an average person: ChainLink is the first successful blockchain application that interacts with the outside world.”
Cane Island also found that the price of LINK was mainly influenced by two factors: the price development of ETH and the growth of LINK users.
The company stated that LINK’s applications are “practically unlimited” as it provides a bridge between myriad real industries that could benefit from the blockchain rollout and existing blockchain projects like Ethereum.
Given the broad application potential of ChainLink, Cane Island expects the growth of LINK users to continue. Since June 2018, monthly user growth has been recorded averaging 17% per month.
The World Economic Forum recently awarded ChainLink a 2020 Technology Pioneer. A press release on Tuesday stated that the blockchain will work with the forum to “define the global agenda on key issues” over the next two years.
Previous pioneers of WEF technology include Airbnb, Google, Spotify, Transferwise, and Twitter.
The elephant in the room?
The ChainLink project made a big impression on several high-ranking organizations. However, neither Weiss Crypto Ratings nor Cane Island nor the World Economic Forum point to the existing shortcomings of intelligent contract platforms.
Scaling issues aside, there are numerous examples of smart contracts vulnerabilities that resulted in investors or users losing capital. The most famous of these was of course the Ethereum DAO debacle in 2016.
The breach actually resulted in a chain split that returned earmarked funds, thereby forming the Ethereum Classic blockchain. Recently, there have been several examples impacting Ethereum and other smart contract platforms.
BeInCrypto reported a major vulnerability in an Ethereum DeFi project in April. Hackers paid off with around $ 25 million worth of cryptocurrencies from Lendf.me, a decentralized credit protocol operated by dForce.
More recently, the Bancor Project revealed details of a security vulnerability that may have resulted in a lack of funds. Given that smoothly functioning smart contracts seem to be vital to ChainLink’s success, it seems a little insincere to these organizations to mention one negative aspect.
The suspicious Schilling von Weiss and the inclusion of a five-fold price forecast even prompted some industry observers to question the motives behind the company’s glowing recommendations.
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