With price gains of more than 100 percent in August alone, Chainlink (LINK) is without doubt the crypto currency of the hour. The project’s developers are taking advantage of the situation and selling LINK in larger packages. At least 40 million US dollars have been collected for them so far.
The crypto industry is bringing forth its next dollar millionaires: The developers of Chainlink (LINK) have already raised around 40 million US dollars in August by selling parts of the LINK allocated to them, as an analysis shows. The Chainlink team has not yet commented on the sales of LINK. In view of Chainlink’s current market capitalisation of more than USD 6.5 billion and daily trading volumes of around USD 2 billion, the developers’ cash out is likely to play at best a minor role in the pricing of LINK.
Background on Chainlink and LINK sales
Chainlink is considered by many to be part of the DeFi crypto division, although not all experts share this classification. The idea of Chainlink is to feed real-time data from almost any kind of source into Smart Contracts. This service is used by various DeFi offerings, including Kyber Network (KNG). Users also include the crypto exchange Binance. In these cases, LINK focuses on the pricing of crypto-currencies. The concept of Chainlink is currently inspiring investors. On 1 August 2020, LINK was still quoted at a good 7 US dollars, but has since reached 17 US dollars and has even scratched the 20 US dollar mark in the meantime.
It is therefore not surprising that the developers want to share in this success. At the launch of Chainlink at the end of 2017, they were allocated 300 million LINKs, or 30 percent of all LINKs. Via the publicly visible block chain of Chainlink, it is now possible to see that 500,000 LINKs are withdrawn from the developer accounts each week and then resold in smaller tranches with a few days delay. The majority of these transactions are apparently processed via Binance. If these sales are extrapolated, this results in an income of about 40 million US dollars for August and about 60 million US dollars over the last 90 days. Nevertheless, the LINK reserves of developers are still huge and should be around 280 million.
In the summer of 2019, surprising LINK sales by the founders had caused criticism, but at that time they also accounted for more than 1 percent of daily trading. This accusation cannot be made in the current wave of sales from the Chainlink team.
Conclusion: Chainlink on the road to success
What the new millionaires do with their money remains their private matter. A year ago, they had already made profits in the double-digit million range. It is to be hoped, of course, that Chainlink will not lose its developers now, because the project is still in development and the conversion to an own Mainnet is still pending. The big plus point of LINK: The Altcoin has a clearly defined benefit for the crypto industry and is also positively accepted by customers outside the industry, including Google. Many market observers continue to see potential for LINK’s price gains and consider the risk of bubbles forming to be manageable.
You can buy and short Chainlink (Link) on Binance.