Chainlink (LINK) Comes Close to New All-Time High After 11 Percent Rally. Will It Tank Like Compound (COMP)?

Opinions
Tue, 06/23/2020 - 17:40
Alex Dovbnya
Chainlink (LINK) pops 11 percent on the China news, but the brutal collapse of Compound (COMP) should be a cautionary tale for greedy buyers
Cover image via stock.adobe.com
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The price of Chainlink (LINK) has rallied by more than 11 percent over the last 24 hours, occupying 13th place by market capitalization.   

The token surged to $4.87 but fell short of surpassing its current all-time high of roughly $4.93 that was set on March 4. 

image by coinstats.app

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China adds more fuel to the fire

The most recent spike came after China’s Blockchain Services Network (BSN) made an announcement about integrating Chainlink’s oracle network. 
 
With the help of this collaboration, the government-backed blockchain platform, which was launched back in October 2019, wants to implement its ambitious plan to create the internet of blockchains.

According to BSN co-founder Yifan He, they will introduce a working demo of its cross-chain services powered by Chainlink this September: 

This collaboration with Chainlink, IRITA, and SNZ Pool will help us achieve this goal and ensure that BSN users reach new levels of security, reliability, and interconnectivity. 

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World Economic Forum Recognizes Chainlink as Technology Pioneer for This Innovation

Beware of a Compound-style plunge  

From March 6 to March 13, the price of Chainlink collapsed by 72 percent amid a broader cryptocurrency market sell-off.

After fully recovering from the ‘Black Thursday’ plunge by mid-May together with other top coins, LINK extended its gains in July.

However, given the enormous 40 percent crash of the Compound (COMP) token, it is unlikely that another altcoin rally is going to have legs (even with China’s endorsement).

As reported by U.Today, blockchain analytics firm AnChain.AI accused the token of being a coordinated pump-and-dump scheme after its wild price action in Q2 2019.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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