In a recent development, approximately 17.95 million LINK tokens, valued at around $95 million USD, were transferred to Binance from Chainlink’s designated wallet address marked as “Chainlink: Noncirculating Supply.” The information was revealed by Wu Blockchain, a well-known blockchain news outlet. The transfer forms part of a total of 21 million LINK, worth roughly $111 million, that was moved from Chainlink’s four official wallets marked as Noncirculating Supply.
A total of 21 million LINK (approximately US$111 million) was transferred from Chainlink’s 4 official wallets marked as Noncirculating Supply today, of which 17.95 million LINK (US$95 million) was transferred to Binance. By @EmberCN https://t.co/TduY0lGQ5T
— Wu Blockchain (@WuBlockchain) June 17, 2023
The crypto community was quick to react to this news, expressing mixed sentiments regarding the motives behind the transfer. However, ChainLinkGod, the Community Ambassador of Chainlink, promptly addressed the concerns in a tweet posted shortly after the action took place, providing an explanation for the token movement.
According to ChainLinkGod, Chainlink is actively working towards creating a self-sustainable oracle economy, wherein user fees cover and surpass the operational costs of the network’s node operators, coordinators, and stakers. To ensure the smooth functioning of the network until full sustainability is achieved, Chainlink has decided to establish a longer-term and more predictable token release schedule. Tokens from the non-circulating supply will be utilized as subsidies, including oracle rewards to nodes.
Despite this clarification, the crypto community has expressed skepticism and raised questions about the motives behind the initiative. Some individuals have criticized the move, suggesting that it is merely a way to justify dumping more tokens by the project.
One user, Cato, went so far as to compare Chainlink to ICP 2.0, referring to the controversial Internet Computer (ICP) project. Cato expressed concerns that, similar to ICP, Chainlink’s continuous technological innovation is overshadowed by the team’s primary focus on selling tokens at a discount to retail investors.
-90% already and people buying today after it dropped 90% thinking it can’t get worse, don’t be surprised when it drops another 40%.
This is ICP 2.0: Yes, there is some technological innovation but the team is mostly concerned with dumping on retail for exit liquidity.
— Cato (@csk00000) June 16, 2023
The comparison to ICP carries weight as the latter faced significant backlash due to its perceived lack of transparency and concerns about the team’s selling pressure on the token price. Cato’s comment highlights the fear that Chainlink may face a similar fate, with the price of LINK already plummeting by 90%. They cautioned against assuming the situation couldn’t worsen and warned against further potential price drops.
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