/biz/ - Business & Finance

>>21638399
Collateral. Have a nice day.

>>21638534
Collateral to what? Your investment? So these are just shares? You'll have to elaborate

>>21638570
Read the whitepaper

>>21638399
>spoon feed me
Go back

Muh blockchain

>>21638570
> spoonfeed me please

You had three years. It’s spelled out in the whitepaper. Read it

>>21638399
The token has value because of speculation. That's it. Buy the rumor, sell the news. Ethereum makes it so you can code a token project into existence and advertise it on social media. Create a pre-sale and ICO where basically every neet under the sun is trying to "make it" so they invest ETH in the ICO. Sergey put 35% of the tokens away for Chainlink business partnerships and enterprise investors. That's where I see the problem with contract deployers holding a portion of the supply. That distribution just doesn't hold a candle to the POW type that Bitcoin uses.

So many coins exist because Ethereum allows that to happen. This could lead to a lot of great tech that uses smart contracts to communicate. It's also vulnerable to scams and projects that are only out to take your money. Those projects promise a product, have a roadmap for when it all will be done, and wind up not creating anything because they never were going to in the first place.

Crypto is 50/50 scam and speculation. That's just the nature of the space until maturity and adoption take place.

>>21638570
holy shit did you just come out of the womb yesterday?

>>21638399
Blockchains. How do they work? This is the basics of the basics of crypto 101, come on newfag at least do a minimum of reading before posting on this board

>>21638832
Thanks this was the exact answer i was looking for. Thanks for not being a dick like the others :)

>>21638720
>>21638774
>>21638831
>dont know amything

>>21638832
the actual answer

OP please read up on tokenomics cause you dont understand the very basics of decentralization

>>21638399
To allow for price discovery around their utility that is independent of the price of the platform they are on. If they just used ETH, it's like using the EURO and hoping for the best.

In reality, though, it's to print company scrip and sell it to speculators during a crowd funding round. They were selling the accredited investor dream to people without the finances to be accredited investors and letting them hope that their ICO tokens would allow them to ransom the utility of the dapp to the actual users. Essentially the token exists to exploit the greed of crowd funders. The first statement is just a white lie playing at moral justification.

>>21638913
Ok because you seem like a smart guy il admit to you what most here won't. The project is a scam in every sense of the word. This board has been scamming newfags for almost 3 years with this ponzi. Token unironically not required, bubble about to burst, avoid like the plague

>>21638534
Fuck thats based. Also is truthpilled. Read the fucking whitepaper op

>>21638399

>>21638399
To incentivize the node operators and act a collateral for the data. The LINK token is also a ERC-667 standard, which means it is able to carry information and trigger smart contracts.

>>21638399
I’ve thought the same thing, but I didn’t look further into it. I just assume that block chains need tokens and nodes to function.

>>21638913
Three years

>>21638399
Im so mad at this retarded thread

>>21639287
Got here last week so ha fag

Seriosuly tho super bummed I missed the x80 2017 fags got w link last week

token needed

>none of you can tell me what's in the white paper

>>21638832
This is a charitable answer. ICO's for sure democratized the IPO model. You as a mere peon were never going to get into say, the facebook IPO at the offer price like the big investors and make piles of cash literally instantly and only because you had a pile to start and the system is totally rigged to make invest banks extremely rich.
ICO took those fuckers out of it totally, but it also brought with it complete fucking scams of the highest order. It valued projects WILDLY beyond anything resembling reality and alot of people got hurt bad by this financially. Ultimately its is there fault, but this is the risk of taking regulators out of the picture, the scammers come out of the woodwork. And we all see it with chainlink now. The ICO took in 32 million dollars which probably 25 million more than they need to make that code and launch the network. They have since sold 10's of millions of dollars more and have made themselves wildly rich and they did it 100% off the sweat of your nuts. Many such cases, tezos and bancor come to mind as they took in 100+ millions each, and they have the BTC and eth, they don't need to sell there literally worthless shitcoin, they have momma and poppa in the fucking bank.
This is not at all different from wall street and IPO's, make no mistake, the difference here is merely that it was easy for anyone to get in and very easy for scammers or even well meaning dumbies to get super wealthy.

>>21638399

>>21638399
this is what the token is officially for according to the whitepaper
but it's initial use was getting SmartContract (parent company) capital to continue working on Chainlink
easy way to raise $32mm back when they did without having to give away any shares in your company
so if SmartContract ever sells shares in their company, or sells the entire company and it's product (Chainlink) they will get 100% of that money and split it accordingly amongst shareholders in the company
from a business perspective, it's genius. no risk for them if things don't work out and if they do, they reap all the rewards. they're one of the few companies that have a native token where their success has nothing to do with the price of the token (except when they sell some like they've been doing to fund future development, but they have so many left to sell that price is negligible)

>>21638399

>>21638399
OP, i tried to answer this question myself here too. I even started a thread. Despite the meme answers collateral and payment for smart contract execution, i had an interesting discussion with a few high iq anons. We came to the conclusion that the tokens don't have any inherent value. They are pure speculation objects. No company would pay fees to a decentralized network in the form of pre mined and inflated tokens. Apart from that the functionalities can all be copied quite easily in a network between companies or simply put life in an interface. So the answer to your question is: The value is purely speculative, chainlink investors apparently are not in for investment but are rather enthusiast upfront financers of the devlopment team.

>>21639444
so this is essentially mining then right? operating the nodes? So what about coins with no mining? Are they scams?

>>21638570
jfc, read the white paper, or go through the archives. The time for spoonfeeding is done. 3 YEARS!

>>21638570
>You'll have to elaborate
no, you'll have to do your own research. spoonfeeding happens on leddit. now go back

>raining outside
>drinking coffee in my jammies
>watching my portfolio grow and analyzing charts

is there any greater comfy?

>>21639512
this is 100% accurate here. and also what i mentioned OP, it was a way for them to raise money through an ICO, which is a smart business move since they didn't have to give up any shares in the company. essentially, it was a kickstarter with benefits. the benefit being that if things worked out, people would buy out of speculation and token holders could sell to others who are speculating.
in this case, it was a win-win for Chainlink and for people that bought in during the ICO and in the past 3 years. the only people that will lose are people that buy after the top, and that could be at any $ number, we can't know that until it happens.

>>21638399
Imagine if Sergey used ETH for staking instead of LINK and suddenly all of the ETH is locked up in a project completely unrelated Ethereum.

>>21638832
>That distribution just doesn't hold a candle to the POW type that Bitcoin uses.
oh fuck right off you btc maximalist faggot. satoshi premined the fuck out of bitcoin. other lucky faggots mined fucktons pf btc for essentially free. as it is today, btc holds no candle over robust proof of stake systems. your fear that bitcoin isn't going to remain #1 is so strong i can taste it.

>>21639610
>SergK
Nice. Finna grab a big mac

>>21639583
mining? no, i wouldn't say it's mining in any way. it was to raise capital for the parent company to continue development without giving up shares in the company. as far as other coins/tokens, i really can't say. what i can say is that prices of coins/tokens in general are based on pure speculation and that's where they get their value, just like equities. people buying that speculate the price will continue going up and people selling that speculate the price will continue going down. that's really all it is.
>>21639610
>>21639680
just leave you retards, we don't mind answering questions. all you're doing is getting upset but bumping the thread for OP, you absolute spergs.

>>21639826
Are you a bit angry anon?

Node operators need incentive to offer truthful, quality data. Chainlink tokens are put up as collateral for contracts.

>>21638902
You're welcome. The new thing is DeFi. Now there's DeFi oriented tokens trying to take the next step and build some kind of ecosystem.

>"DeFi is an abbreviation of the phrase decentralized finance which generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum. In simpler terms, it's financial software built on the blockchain that can be pieced together like Money Legos."

Question is is DeFi another bubble waiting to pop or will there be legitimate decentralized applications creating the foundation for a new sector of digital finance and shit.

Still, take a look around. What do you see going on? All I see is new tokens, /biz/ shilling them, and the same scams constantly being traded. Who is using cryptocurrencies as they were designed for?

Again, is this what crypto will only be? Speculation and cashing out when you "make it"? In the mean time, yeah go ahead and try to day trade if you know how. There's money to be made. I don't think most people give a shit about what the coins actual do but that they make them money as soon as possible. If that's the case, shut the whole thing down now.

>>21639287
10+yrs

>>21638570

Anon instead of insulting you I’ll just say: lurk more and keep an eye out for chain link info dumps, read the pdf chainlink summary, read the whitepaper. You’re not even asking level 1 questions this is level zero shit and people will just mislead you for fun if you’re this stupid

>>21639419
Exactly. If you get burned on buying into an ICO, that's because others are selling to make a profit. This isn't the stock market that opens and closes at a certain time of the day.There's just token projects promising to deliver on some kind of blockchain driven product that is trying to solve problems that don't exist or are still theoretically possible.

Like Ripple. The XRP token isn't necessarily needed. RippleNet is the main product of Ripple that allows global transfers of money for a micro fee.

>>21638570
LOOOOOOOOOOL

>>21639898

very very insightful. i just see new tokens cropping up with weird use cases and don't know what to think of them so your reply clarified a lot to me ty

>>21640068

that's where my confusion was... I look at stuff like Ripple and try to connect the dots as to why they would need a token in the first place. but u guys btfo'd me i should read the white papers and see what they say the token use is for. my b

>>21639826
I'm not a BTC maximalist. I'm a fair distribution promoter. Satoshi mined Bitcoin, but he wasn't the only one in the beginning. Hal Finney was mining. There were OG miners in 2009-10. Satoshi mined 1.1 million bitcoins to secure the network and get it off and running. He promoted no use of GPU's and he didn't foreshadow mining pools and asic mining. Bitcoin took off faster than expected due to more people understanding just how revolutionizing Bitcoin was. The first ever decentralized cryptocurrency EVER. 30 years of research to come up with it.

Bitcoin is great. Blockstream is not.

>>21639898
>Question is is DeFi another bubble waiting to pop or will there be legitimate decentralized applications creating the foundation for a new sector of digital finance and shit.

Both of these are correct. DeFi will expand until it is overbuilt, and then recede, leaving only those applications which are able to survive both market expansions and retractions.

>>21640155
DYOR is all I can say. If you want to make money, learn about trading as much as you want. YouTube channels, learn TA, and the ins and outs of trading. If you're in it for the long term, pay attention to projects that make the most sense, have a steady development, and isn't trying to solve a problem that does not exist yet.

>>21640288
Oracles seem to be a focused type of blockchain tech that everyone is saying is needed to make smart contracts work with the real world. I'm all for Chainlink's oracles and everything, but how can you trust them to make it happen? If Chainlink is more revolutionary than Bitcoin, why didn't they have oracles completed and usable at the time of the ICO? There's too many projects who say there token system does this or that, but it needs 2-3 years of development. So what they're saying is they need a good amount of money up front to pay programmers and marketers to make their product. Sorry, but I'm not funding your "company" until you have a product I can use and its better than legacy services.

all this fud and misdirection meanwhile I'm watching my rank drop by 10 on ethplorer, I see you /biz/ I see you

>>21639826
>robust proof of stake systems
Who are these mythical creatures i keep hearing about? How the fuck can they deliver PoS while ethereum, with its army of top developers first mover advantage, struggles to launch PoS? I'd like to see Tesoz,Polka or any so called "eth killer" handle even a third of ethereum traffic

>>21640517
>why didn't they have oracles completed and usable at the time of the ICO?

Because having a working, let alone profitable product has never ever been a requirement of tech startups, blockchain or otherwise.

>Sorry, but I'm not funding your "company" until you have a product I can use and its better than legacy services.

This is the mentality of someone who has enough money to wait. I'm not putting that down, but understand that many people who bought in at ICO could not have had this mentality.

>>21638399
YOU HAD THREE YEARS
>>21638832
BASED
https://www.youtube.com/watch?v=MIyBFNjc1kY
ITS MONKEY SEASON $1000 EOM LETS FUCKING GOOOOOOOOOOOOOOOOOOO

>>21640517
>but I'm not funding your "company" until you have a product I can use and its better than legacy services
No risk, no reward.

>>21640369
this is good advice, but i have to add that TA in crypto is barely useful, use it with confidence only when markets are stable.
also, keep in mind that when you're investing long-term, especially in tokens like link, you're not exactly investing in the success of the company and product behind it. sergey has even said that token price doesn't matter to him, and it really doesn't because their success or failure won't affect you, the token holder, proportionally. so when you're investing long-term into any project that seems promising, the main thing you need to take into consideration is how others will speculate the coin/token's price in the future based on the progress of the company/product underneath because that's the what affects price most.
also, following hype is a legitimate strategy to make big gains in crypto. follow projects, and when they moon, look for the native tokens of their competitors and do some research and invest if you see fit.
a perfect example of this is how link went from ~$0.30 to $16 in 3 years, but their competitors like BAND and TRB, made insane moves in a matter of months due to people thinking the same way by following the hype. BAND went from $0.30 to $18 in 4 months all because of the hype around LINK and people wanting to get in on a competitor knowing others would too, at a smaller market cap, giving it a lot of room to move up.
it's all a game of speculation. educated speculation and understanding what other investors in crypto are doing are going to make you lots of $
good luck OP

>>21638399
Flare.ghost.io

Flare kills 99% of shitcoins/PoS

>>21638399
>Why do companies like ChainLink or Orchid or a lot of others even have coins/tokens?
Do you understand you ask a question about blockchain company who offers blockchain solutions and only way to offer a solution is to be part of blockchain?
>How do they justify even putting a coin in the market, and why would the coin even have value?
"We have a solution to a problem, but we have no money to hire programmers to write a code. Plis buy our tokens, we will solve this problem." or "Look and my futuristic CGI webpage, if you buy my token, I will take your money and buy bitches in Pattaya, also I will give you this usless iphone app". Tokens have value, because it's pennystocks.
>Are the coins just glorified shares at a certain point?
Always has been, eth is a platform similar to fundme, kickstarter, but in new way, blockchain way, without any goddamn borders and gov regulations(some laws apply obviously)
>I don't understand why so many coins exist...
Do you, by any chance live under rocks? like a deep nuclear shelter room full of rocks?
It's surprising, at the same time I refuse to call this a b8, it's just to stupid for a b8...

>>21640807
Good opportunity to make money even with empty project who never fulfill their promises. It's a crapshoot. You don't have to have a working product, but come on why not have one? Something to use.

>>21638902
Found an answer you were looking for..... Based bias go back to plebbit.

>>21640876
Good stuff. Don't want anyone to get scammed, but it's our choice alone if we decide to buy tokens or not. The smoke will clear. Blockchain is just beginning to take shape. It will be different when the space matures in a decade.

>>21640876
can you give me some advice anon? Also should i keep throwing money into crypto such as chainlink?

>>21641317
They've done pretty well so far going the way they have.

>>21639898
This is why XRP is the only good coin, even though it tends to crab

>>21641406
is block chain a good choice to let it sit and grow for a long term investment?

>>21638570
Fucking retard

>>21638399
To incentivize honest decentralized data reporting. Who is going to run a node for free? Nobody. If you managed to get people to run nodes, who would report false data if they had nothing to lose by doing so? Everybody. It makes truth profitable, and lying not, without having to deal with a centralized entity that could be manipulated.

>>21638399
The Gentile is like any common housedog, when you want them to perform you give them a treat. The token is like our gift to them when they preform

>>21640876
Top quality post. Where else can I keep tabs on crypto anon? All I know is 4chan

>>21638399

>>21638570
Imagine not knowing how chainlink works. Read the white paper anon..

>>21640814
>YOU HAD THREE YEARS
you had 10 yrs to prove your block chain tech is worth anything in mainstream economy.

>>21640232
>I'm not a BTC maximalist.
you are
>I'm a fair distribution promoter.
you aren't. the early miners of bitcoin mined fucktons of btc for practically zero cost. you call that fair distribution? it ain't. it is no different than a massive premine or an ICO distribution to the founding team.
>fair distribution promoter
let's talk about that. who gets to mine bitcoin today? the ultra-rich. the elites with control of unbelievable sums of money and their massive ASIC farms. who gets to use ASICS... oh didn't you know, they're patented. So you get to mine bitcoin if you're fuckton wealthy and you have access to patented ASICS... but wait there's more. None of this does you any good unless you also have access to subsidized power through political connections, or cheap power due to happenstance of geographic locale.
gatekeeper 1
>ultra rich
gatekeeper 2
>accesses to patented technology with restricted access
gatekeeper 3
>ultra cheap power through political connection or lucky geograpic positioning
wow, promote that fair distribution some more faggot.

WHY do companies have stock?

What a fking retard

DZI is a rocket to the Mars, can't wait to see it on #JUSTswap. DeFinition.network

>>21638780
this

>>21638399
Absolute faggots
Complete triple niggers.
You just don't get it do you???
You still don't understand with your subhuman IQs
Everybody will use Link.
EVERYBODY.
VERYBODY
ERYBODY
RYBODY
YBODY
BODY
ODY
DY
Y

Every company, every manufacturer, every financial institution. Anything and everything that has an API to consume will use Chainlink.
Chainlink doesn't need ETH
Chainlink doesn't need ADA
Chainlink doesn't need QTUM
Chainlink doesn't need R3
Chainlink doesn't need ILP
Chainlink doesn't need anyone
BUT EVERYBODY NEEDS CHAINLINK
You think this is a pump and dump?
You think this is an exit scam?
You think this is a Ponzi?
Chainlink will singlehanded link entire economies.
Chainlink will stitch together every aspect of your pathetic existence.
Chainlink will be the glue that holds the entire digital universe together.

Ever hear of String Theeory?
This is the digital big bang.
This is the alpha event.
This is Chain Theory and it will encompass your entire insignificant existence from this point forward.

>>21641406
100% agree with you, that'll take some time though, like you said a decade or so, so for now we trade on speculation for entries and exits $$$ :)
>>21641410
honestly, if you'd asked me a month ago, i'd have told you to buy TRB and BAND, both of which would've netted you great gains
as for investing in LINK, look i like LINK, but i don't like coins/tokens that can't move much more from where they're at currently
LINK was a great buy 3 months ago even, but not so much anymore (i've had my LINK since after ICO 3 years ago, so that's the only reason i haven't sold my entire stack yet)
as far as advice i can give now, i'll have to say look into any DeFi protocol's native tokens
go to defipulse.com and look at which protocols are gaining in $ locked into them and buy into ones you find interesting after doing some research, preferably tokens for protocols offering something new or something people are hyped about
a good example is LRC (loopring)
i'm currently invested in it
i hate telling people to use twitter but it's great to follow all these companies and protocols so you're always in the know with what's going on
truth be told, it's much better than this board is nowadays. over there you'll find all the new DeFi opportunities to yield farm and also get in the know with what's on the up and up realtime vs. here where it's just shill threads on mostly scams, but that's why it's good to be here and crypto twitter, find cool stuff on either, cross check it here, if there's sentiment building that you think is legitimate, buy in
good luck anon
>>21641845
hey anon, glad i could help. refer to my reply t the anon above, same exact reply to you as far as where to keep tabs
good luck to you too anon

MOST IMPORTANTLY!!!!: do not ever have coin/token loyalty!!! that's how you lose out on opportunities
treat all these as what they are, money making opportunities
trade off loyalist hype