Chainlink is a bubble that is waiting to burst, and the token will eventually lose 99% of its value, according to crypto investor and analyst ‘Cryptowhale’. The warning comes as the price of Link tumbled 23% to $15.41 in 48 hours.
Cryptowhale this week told his 28,000 Twitter followers that there are parallels with what is happening now to chainlink (LINK) and what happened with altcoins in 2017, the year of the historic cryptocurrency bull run.
An altcoin is any other cryptocurrency, which is not bitcoin (BTC). With a market capitalization of $5.8 billion, chainlink is the world’s fifth largest digital asset, making it one of the prime examples in the altcoin market.
“For months we’ve watched LINK grow exponentially. Its price has shot well beyond its intrinsic value through Defi hype, and greed,” opined Cryptowhale, warning investors not to “fall victim to the bubble.”
“Chainlink was created after the 2017 bubble, so it didn’t have its pump and dump moment. Instead, it’s having it now. Predicting the top is almost impossible, but we know how it will end. Once the hype subsidises, panic will take over,” the analyst added.
Cryptowhale illustrated a series of factors that make chainlink (LINK) a bubble – one that will inevitably pop. The token rises too quickly, is overbought and then FOMO sets in, pulling in large numbers of retail investors.
This is followed by a huge sell-off, 99% price correction, and eventually, uninitiated small investors will be left desperately clutching to an asset with diminishing value. The crypto analyst argues that chainlink may now be at any one of the above bubble stages.
Cryptowhale’s predictions may be reflected in the performance of Link over the past couple of weeks, and more so in the last few days. The coin plunged 23% to as low as $15.41 on August 18 after having reached a…