ARB Letter - Chainlink Pump Coming
007 - Have you heard of Chainlink?
Sunday - September 5th 2021
INTRODUCTION TO CHAINLINK
What’s up size lords and aspiring size lords. Had some spare time this weekend and wanted to dive into a high conviction thesis and position that I currently have. None of this is investment advice and should not be construed as such. Seriously lmao.
As initial context to anyone new to the ARB Letter, outside running a large financial meme page and online business/brand, I’ve been involved in crypto since 2017, so while I am by no means a professional, I have been through 2 bull markets, some vicious bear markets, and have fortunately been able to generate great returns over 4.5 years. I can share what I do know. I have bet on shitty alts and picked some absolutely great ones too. Chainlink will be one of those great ones. I can feel a big pump soon.
I engaged in some active trading over the years but I am mostly in long core positions in blue chip crypto like BTC, ETH, and Chainlink: the topic of this overview. Do your own research and diligence, but I am extremely bullish Chainlink in the short and long term. In fact I wanted to release this sooner because as I finish this Chainlink is pumping over $32. Wanted to get this out before we potentially see a much bigger rip higher. I might add that I am a close follower of LINK community members on Twitter and online, I will plug them in this as they are excellent resources to follow.
WHAT IS CHAINLINK?
Andy, what the fuck is Chainlink? Calm down my children. Let’s start from the top. Depending on how you approach crypto you may or may not have heard of Chainlink. It’s a sleeping giant. The official description of Chainlink is as follows:
Chainlink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Smart contracts are pre-specified agreements on the blockchain that evaluate information and automatically execute when certain conditions are met. LINK tokens are the digital asset token used to pay for services on the network (Chainlink).
But Andy I’m an autistic degenerate day trader who consistently loses money on awful investments, what the fuck does that even mean? My Monke Brain no comprehendo….
Chainlink is found everywhere across the broader crypto ecosystem. Over the past three years, the underlying oracle technology – a way to feed external data into programmable smart contracts – has been integrated into over 300 projects.
Essentially you can think of Chainlink like as the key conduit and glue between real world events and activities on the blockchain itself. Ultimately it is a blockchain-based cryptocurrency network that provides a link between real world data and smart contracts. Mass crypto adoption doesn’t happen without it. You can buy Chainlink on a number of exchanges including Gemini and Coinbase.
Added to this, the Chainlink Network is driven by a huge open-source community of data providers, node operators, smart contract developers, researchers, security auditors and more. Moreover, the firm aims to ensure that decentralized participation is guaranteed for all node operators and users that look to contribute to the network (Coin Quora).
Chainlink launched the token LINK in 2017 under 20 cents and it remained under $1 until 2019. Come 2020, the price began to rise rapidly. In fact, the price increased from under $2 in early 2020 to a high of $51.89 on May. 9, 2021.
I have had a position in Chainlink for about 1 year, it currently makes up 13% of my crypto portfolio. My entry is not as great as I would like, sitting around $30.00 ( I got eager during first half of this bull run). I think LINK makes big moves from here to the ATH range of around $50. Usually LINK is a slow mover behind anything BTC/ETH pumping, but it does typically follow them.
However, its utility within decentralized finance (DeFi) gives it a unique edge over its peers and the resiliency to weather multiple crises in the crypto industry (InvestorPlace.com)
ETHEREUM AND CHAINLINK
Due to Chainlink’s large presence on Ethereum’s network, its price is closely correlated to that of Ether. When ETH broke the $4,000 level in May 2021, LINK broke $50, setting an all time high of $52. If you believe that ETH can break out to $10,000 as it transitions to a proof-of-stake model, then LINK can likely reach $100. Additionally, if other blockchain networks adopt smart contracts, such as Cardano (ADA), that also serves to benefit LINK (Benzinga).
Chainlink price has been consolidating while the rest of alts have already rallied higher in recent weeks and some even set up new all-time highs.
Right now based on the LINK/ETH ratio I think longing here is a no brainer given broader crypto momentum. As long as support around the $25 level holds along with BTC/ETH stabilization, a bullish breakout looks inevitable.
Important to also note LINK is built on Ethereum in accordance with the ERC-20 standard for tokens, so the two are more or less linked in many ways functionally (no pun intended).
There have been a whole host of exciting partnerships and developments with the ChainLink team in 2020 and 2021 Including:
You can see a full list of active Chainlink Partnerships HERE.
Chainlink has an insane community with a cult-like following. I think the project is solid but this is definitely worth a mention for anyone looking at Chainlink as a potential investment, as you are sure to come across some meme absurdity if you follow Chainlink on Twitter or the web. Sometimes the LINK community can seem crazed, but i’d argue that is because they understand how valuable Chainlink is. Holders of LINK often dub themselves “LINK Marines” anecdotally claiming to hold no matter what the price of LINK does. They also love Pepe the frog memes. I warned you.
Chainlink is mooning to $33 right now as I type this so certainly be prudent if you choose to ape in. I am of the opinion we see an aggressive move past $40 very soon and will end 2021 over $100 USD. Not financial Advice. Let me know if you are bullish or bearish Chainlink in the comments. Resources and a Chainlink Dad Hat below for hardcore Marines.