ChainLink (LINK) is a decentralized oracle network (DON) that serves as a bridge between on-chain and off-chain data, linking smart contract platforms with external data sources. As part of CoinDesk’s efforts to provide value, this equity analyst-style report is an initiation and declaration of asset coverage, using a combination of fundamental, technical, and on-chain analysis.
LINK’s native token serves as the payment mechanism on the network itself, and holders of LINK are also able to stake the asset itself for additional returns on various decentralized finance (DeFi) platforms. ChainLink’s efforts have led to an expanding network of oracles, meant to increase the reliability of data transfer.
One timely feature that ChainLink boasts is its Proof-of-Reserves (PoR) offering, meant to bring transparency and verification of third-party reserves. Paxos, TrueUSD, and BitGo are among ChainLink’s PoR customers. A strategy that some traders may consider is to monitor whether LINK’s price declines toward its 20-day average of $6.92 before increasing and/or decreasing their holdings.
Given the often-opaque nature of this space, I think it’s necessary, to a certain extent, said CoinDesk Deputy Editor-in-Chief Nick Baker. It’s essentially an initiation and declaration of asset coverage, using a combination of fundamental, technical, and on-chain analysis.