Zeus Capital accuses Chainlink of being a fraud

Zeus Capital has issued a dubious report accusing Chainlink of fraud. The report predicts that the chain will collapse due to the closure of its operations and alleged rejection by the community, with the goal of significantly lowering chain prices. Fraud research firm Zeus Capital released a 59-page report accusing Chainlink (LINK) of being a scam. The report is titled "Exposing the Chainlink Scam - An Investigative Report on Why Chainlink is a Wirecard of Passwords." Initially, the fake research firm sent the report via email. Zeus Capital then created accounts on the social networking sites Twitter and Reddit, and created a website.

The aim of the report seems to be to manipulate the price of LINK and turn the current uptrend into a downtrend. In the last few weeks, Chainlink has achieved one of its best performances in the top 10 cryptocurrencies, reaching new historic highs in its price. Therefore, a sudden drop would have given significant gains to the person or entity betting on the crash of LINK’s price.

At the time of publication, the fake research company has deleted its social networks, but keeps the website active (www.zeus-capital.com). At this point the report is still online, but for security reasons it is advisable not to visit the website. Furthermore, some members of the crypto community tried to contact Zeus Capital. However, the sole research company by that name is based in the UK and stated that it does not work with cryptocurrencies.

The report’s allegations against Chainlink (LINK)

The report has the appearance of a legitimate document and on the surface seems to follow the required methodology of a serious investigation. But its argumentation focuses mainly on the criticism of Chainlink’s policy. Furthermore, as mentioned, the report seeks to get investors to set up a short position that would benefit the creators of the report:

We believe that the house of cards is about to collapse as operating activities on the network are fading, the pool of potential clients is quickly depleted, and the crypto community is realizing who the fool on the table is… Based on our findings we have opened a short position in LINK and recommend you do the same with a target price of USD 0.07 and potential upside of nearly 100%.

According to community member Lil Bubble, the report came to him via an email address linked to the NexoFinance platform. Therefore, according to community speculation, Nexo or a NexoFinance employee is the main suspect as the author of the report.

The accusation is also supported by further investigations into the website of the fake research firm Zeus Capital. In reviewing the contact address on the website’s code, community members discovered a reference to “nexofinance”. This account is also used on the Nexo platform website.

The co-founder of Nexo also revealed that they hired a team of investigators to get to the bottom of the matter. The investigations are still in their early stages and, for now, any conclusions seem rushed.

Author : Reynaldo