/biz/ - Business & Finance

[Anonymous No.49854337]

why is LINK pumping despite BTC being at 20k

[Anonymous No.49854352]

because nobody redeeming it sir

[Anonymous No.49854456]

>>49854337
Because we're in a bear market

[Anonymous No.49854470]

>>49854337
its not pumping you stupid shit

[Anonymous No.49854546]

>>49854470
>it's not pumping

[Anonymous No.49854740]

>>49854470
$7.
it should be lower given the circumstances

[Anonymous No.49854797]

>>49854546
zoom
the
fuck
out

[Anonymous No.49854919]

>>49854337
there might actually be some truth to this theory that link tokens which have been placed on lending protocols are being used massively in a series of carry trades to buy eth and earn profits through staking. There is no way to earn passive income from link right now without lending it, and there is no way to make money borrowing link without shorting it. Other protocols have some sort of staking or rebate or other benefit to holding that shifts the game theory equilibrium away from just borrowing and shorting them, but link's staking isn't out yet so there is no reason not to short.

All these lending protocols have always been making money off their users by using their stacks to short, thereby earning you 20% apy you are so stoked on but simultaneously weakening your underlying investment. Link, having no staking mechanism yet, has probably been the worst offender. The death of defi which is unfolding in front of us is unironically bullish for link because it means people will withdraw their tokens from these protocols and cause liquidity issues for lenders and borrowers hoping to short or maintain their short positions. If this is really why chainlink labs released their paper on the staking roadmap prior to consensys, then ari and sergey really are playing 4d chess.

[Anonymous No.49854968]

well, matic is also pumping while btc is dumping because polygon is on another level its literally bringing mainstream companies to the web3 space

[Anonymous No.49854982]

>>49854968
should i pick up a bag of matic?

[Anonymous No.49855004]

>>49854919
>If this is really why chainlink labs released their paper on the staking roadmap prior to consensys, then ari and sergey really are playing 4d chess.
Yes.

[Anonymous No.49855215]

It was the same when everything died last time. LINK shit itself along everything else but not nearly as badly as everything else. Probably because it's one of the few shitcoins that might actually stick around and it underperformed in the bull market then as it did now.

[Anonymous No.49855589]

>>49854919

So you’re saying that they prematurely pumped the price that way the sell the news moment didn’t plunge the price?

[Anonymous No.49855610]

>>49854337
LINK pumps are historically leading indicators for a crash

[Anonymous No.49855944]

>>49855589
It did a couple of things. When people saw that link staking was coming and that it was estimated to be at around 5% vs eth's estimation of 4%, people started pulling their link off of protocols and into wallets again in order to prepare for staking. This reduced liquidity available for lending and made future shorts more expensive. Additionally, it pumped the price. If you have a short position using link which you borrowed with collateral, you really don't want to get margin called by increased link prices. So it was a mixture of decreased liquidity and the beginning of a cascade of short squeezes that we will hopefully see play out this week. But imagine this: if all this liquidity pools start collapsing through bank runs like bancor and shorts getting liquidated, we'll have removed the cause of links price suppression and also caused a massive buy back as groups have to cover their shorts. This would super charge link's price potential in the short term. If all this stuff is true it will be a week or more of daily green dildos on the link chart. In a down market like what we're seeing right now, this could also have secondary effects. If bitcoin and eth are going down 5% a day and link is one of the only top market cap tokens doing 10-15% up every day, well obviously the market will react to that and sell their other positions to get into link. It could be a perfect storm. Well, we'll probably know one way or the other by the end of the week.

[Anonymous No.49856022]

>>49854546
yeah looks like it.