LINK SCAM OR LEGIT

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Metaglobal

Bforum Member


There are hundreds of cryptocurrencies and blockchain projects working to transform the world of finance at a global scale. In this article, we'll take a look at LINK, one of the most popular stablecoins on the market today. What is LINK? Is it a scam? Let’s find out the answer

What is LINK?​

The LINK token is the inherent currency of the Chainlink network. This is an Ethereum-based token that helps power the Chainlink decentralized oracle network, which means it runs all the operations on the Chainlink network.

LINK token is used as an incentive to compensate node operators for participating in tasks that lead to blockchain success. It is currently trading at $14.75 amounts to over a 21,000% increase from the launch price.

At the time of this writing, the LINK token has a circulating supply of over 460 million tokens. Which is about 46% of the total supply, making the token limited. 35% of LINK token is given to the decentralized oracle network operators and another 30% to the overall development of the ecosystem.

What are the features of LINK?
  • Scarcity
LINK’s issuance amount is finite and has scarcity. The issuance amount of LINK (LN) is capped at 100 millions by year 2021.
Amount In Circulation: 6,262,599LN​
  • Volatility
LINK (LN)’s value is determined by the demand and growth of the ecosystem
Current Value: 34.05USD​
  • Transparency
Every transaction is recorded and visible on blockchain




Pros
  • Allows secure interaction between smart contracts and off-chain data​
  • Potential to allow smart contracts that mimic current financial agreements​
  • Financial reward for feeding reliable data securely into Chainlink​
  • Partnerships with big companies like SWIFT and Google Cloud​
Cons
  • Questions as to whether LINK tokens are actually necessary for project​
  • Systems can work with a single oracle, allowing for data manipulation​
  • It’s not open source​
  • Very high circulating supply.​

Is LINK a Scam?​

There are two main advantages to Chainlink which separate it from its counterparts also working with oracles, and they are its distributed sources and distributed oracles. Most oracles are centralized, whereas Chainlink is a network of decentralized oracles. Traditionally oracles are third-party services offered by centralized entities that are not subject to blockchain consensus mechanisms, and therefore the reliability of the data is questionable. Incorrect data being transmitted to the blockchain could result in smart contracts performing the incorrect functions, and with just one oracle as the source that data could also be tampered with by people with malicious intent.

But there are more subtle disadvantages to those who are looking to invest in Chainlink. The first of these subtleties is that the LINK token is considered by many to be somewhat unnecessary to the network, as they are only used to pay oracle operators. Many believe that this could have been done with some other cryptocurrency that is less tied to the project, meaning that the value of LINK is directly correlated to network usage, so operators are unlikely to be motivated to run oracles without a ton of usage to ensure they get compensated fairly.

LINK is the lack of promotion and communication by Chainlink. As stated earlier, after the Initial Coin Offering, and even leading up to it, there was a lack of promotion and communication by Chainlink. This led many to believe they were scammed. Thankfully nowadays they are much more active on many social media platforms. They also have a fervent fanbase that are sometimes referred to jokingly as the “Link Marines”.

This is a high-risk cryptocurrency because nobody knows if it will pay off. There are no standards and no clear way to compare oracles on a network–you can’t even see what kind of data they’re providing. Most of the other traditional oracles were around long before Chainlink and have already proven their effectiveness in the world of business.



Is LINK A Scam? We can't confirm yet. Please, however, do it in a responsible manner. Don't invest a lot of money in LINK and always go for low-cost positions. Otherwise, you may find yourself in a difficult situation, both financially and emotionally. Leave your impressions about LINK at the comment section down below.
 

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