Zeus Capital has once again targetted the ChainLink project claiming the team carried out an unregistered securities offering
They claim the founders of ChainLink promised investors that the value of LINK was going to go ‘vertical’
Additionally, ChainLink founders control much of the ecosystem as is usually the case with a security
Timothy Peterson has pointed out that the lawsuit against Chainlink might be Zeus Capital attempting to recoup losses after unsuccessfully shorting LINK
The team at Zeus Capital has ramped up their accusations against ChainLink (LINK). The team recently compared ChainLink to the SALT project that was penalized by the SEC for carrying out an unregistered securities offering. In particular, they pointed out that the ChainLink founders, just like SALT’s, promised investors that the price of LINK would go ‘vertical’.
The SEC said the token counted as security because Salt told investors that it would take various steps to increase the price of the tokens and that those tokens could be sold at a profit on a secondary market.
Sergey Nazarov often talks about the $LINK value going “vertical” if the universe of blockchains that deploy it to get real-world adoption. Isn’t this the same as misleading investors that it would take various steps to increase the token’s price?
ChainLink Will Eventually Be Classified as a Security
The team at Zeus Capital has predicted that ChainLink will eventually be classified as a security based on the founders’ statements that the price of LINK would experience ‘vertical’ movement.
The founders’ statements about expected “vertical” price action and SmartContract’s full control over the “decentralized” Chainlink ecosystem puts substantial risk that $LINK will eventually be classified as a security.
$22k Already Awarded to Individuals Providing Info on ChainLink’s ‘Illicit Activities’
Zeus Capital classifying LINK as a security comes a week after they offered $100k in rewards for information on ChainLink’s ‘manipulative and illicit practices’. Zeus Capital claims to have already awarded $22,760 to those who have provided ‘insightful information on ChainLink’s questionable affairs.’
Below is a tweet from Zeus Capital updating the crypto community on the progress of the rewards program.
Zeus Capital’s Lawsuit Against ChainLink Does Not ‘Hold Water’
Timothy Peterson, of Cane Island Alternative Advisors, has since provided his insights regarding the possibility of Zeus Capital preparing a class action lawsuit against ChainLink. According to Mr. Peterson, Zeus Capital ‘is not a law firm so they are not preparing anything’. Additionally, ‘class status must be granted by a judge’.
Mr. Peterson’s comments were shared via a Twitter thread that also pointed out that Zeus Capital probably made a huge loss by shorting Chainlink hence the additional efforts to discredit the project.
Plaintiff must show damages. The damage is presumably Zeus lost their asses on their reckless short position. A million defenses to this: assumed risk, caveat emptor, etc. Could even be inferred Zeus is doing the manipulating with this stunt, to recoup short losses…
Who else would be in the “class” of investors? Those that went short on #Chainlink by following Zeus Capital’s ill-advised recommendation! If anything, the investor class could sue Zeus Capital with more success than they could Chainlink!!
Mr. Peterson went on to explain that he’d be happy to be an ‘expert witness for ChainLink’ if the lawsuit ever went to trial.
If this ever goes to trial, I’d be happy to be an expert witness for #ChainLink. Pass the word if you know someone at ChainLink. I’ve had expert witness experience in a past federal finance-related case and my credentials are impeccable.