This is my post for Steemit Crypto Academy Trading Competition Season 6 Week 3. And this week I am joining the team FRONTLINE with Professor @shemul21 and Professor @abdu.navi03.
1 – The Pair I Trade: LINK/IDR
1.1. About LINK
1.1.1. A Brief Introduction of LINK and Its History
Chainlink (LINK) is the crypto token of the blockchain technology named Chainlink. LINK, within the Chainlink network, is used to pay network operators for their duties (including securing the network). In addition, the network's smart contract agreements are also collateralized using LINK token within the network. However, like most other crypto tokens, LINK has also become a trading asset, and is on the list of popular tokens.
Chainlink is a blockchain oracle. Blockchain oracle, in the blockchain world is a term to define “a network or protocol or ecosystem that facilitates data traffic between off-chain (non-blockchain technology) and blockchain, and vice versa”. If we took the on-chain and the off-chain as two different worlds, the blockchain oracle acts like a bridge that connects the two worlds.
Chainlink was born in 2017, when Sergey Nazarov and Steve Ellis started to co-author a paper. A Cornell University Professor, Dr. Ari Juels joined the team later in the same year and acted as a technical advisor, and on September 4th that year the three published the paper entitled "ChainLink: A Decentralized Oracle Network”. The paper later became the first version of the Chainlink blockchain white-paper.
A number of experts have then been involved in the development of Chainlink as consultants, for example Andrew Miller, Evan Cheng, Hudson Jameson, Jake Brukhman, and Brian Leo. The newest, at the end of January this year, Chainlink has hired Christian Catalini, co-creator of Meta’s Diem and cryptographer Dan Boneh as Technical Advisers. They will both be primarily responsible on the issues of inter-blockchain messaging, data, and token movements.
In the first quarter of 2019, Chainlink registered its trademark in the Cayman Island, under the corporation named Smartcontract Chainlink Limited Sezc.
In April 2021, Chainlink published its second version of white-paper, entitled “Chainlink 2.0: Next Steps in the Evolution of Decentralized Oracle Networks”, which currently available for download on https://chain.link/whitepaper.
Chainlink code is written using two programming languages, Solidity and GoLang, and is now available as an open source application where everybody is welcomed to use and contribute. Chainlink has been licensed by MIT (Massachusetts Institute of Technology).
Chainlink is built on Ethereum technology and therefore uses a Proof of Work (PoW) algorithm. Its token, LINK, is made in ERC677 standard, an extension of the ERC20 standard (the original token standard on the Ethereum ecosystem).
The technology offered by blockchain oracles such as Chainlink, can be used to record important data on the blockchain. But, what if, we wanted to record certain data on the chain but wanted to keep another related data secret? To this question, Chainlink has integrated itself to DECO in 2020. DECO is a creation of one of the Chainlink original writers, Dr. Ari Juels. The technology known as Zero-Knowledge Proof (ZKP), which powers DECO allows the protection of sensitive related data when certain data is recorded on-chain.
Chainlink's ability to process data from several off-chain computing functions allows it to be used in recording more complex data such as recording the official results of an election.
No less than 58 DeFi projects are using Chainlink technology at the time of writing as seen at https://chain.link/use-cases/defi. Amongst all are:
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Beyond DeFi, Chainlink technology has also been used in by several projects. The following table showing some of the projects amongst that use Chainlink technology:
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1.1.2. The Token Statistics
At the time of writing, according to CoinGecko, Chainlink (LINK) was ranked #24 by market cap. The price chart for the last 7 days was green, which indicated a positive price movement (uptrend) when compared to the previous 7 days. See the screenshot below.
At the time of writing, LINK is trading at USD15.77 per token, signaling a 3.00% increase in price in the last 24 hours.
The following is the all-time LINK price chart image as screenshotted from CoinGecko. The history of LINK has been recorded on CoinGecko since November 9th 2017. Since then the price of LINK token, just like other major coins, has experienced significant ups and downs. And, similarly to most other coins, LINK has also experienced a "spring" towards the end of 2021 at which time we witnessed a period of very significant uptrend in cryptocurrency trading.
Below is LINK token’s table of statistics and related-data. The data that builds this table was collected from CoinGecko.
| Aspect | Value |
|---|---|
| Token Name and Ticker | Chainlink (LINK) |
| Market Capitalization | USD 7,366,747,709 |
| Market Cap Dominance | 0.36% |
| Market Cap Rank | #24 |
| Total Supply | 1,000,000,000 LINK |
| Max Supply | 1,000,000,000 LINK |
| Circulating Supply | 467,009,549 LINK |
| All-Time High | USD 52.70 on May 10, 2021 |
| All-Time Low | USD 0.148183 on Nov 29, 2017 |
| Website | https://chain.link/ |
| Blog | https://blog.chain.link/ |
| Explorers | Etherscan; Ethplorer; |
| Arbiscan; Chain; | |
| Blockscout; Bscscan; | |
| Polygonscan; Snowtrace; | |
| Ftmscan; Meter; | |
| Social | Reddit; Twitter; Telegram; |
The Whitepaper (currently is version 2) is available for download on https://chain.link/whitepaper.
1.2. Where to Trade LINK
Currently LINK is available for trading on many cryptocurrency marketplaces including major ones such as Binance, HitBTC, KuCoin, Huobi, UPbit, FTX and many others.
Below image is screenshotted from CoinGecko, showing a table listing the spot market for LINK tokens. This table was arranged by trading volume, the highest at the top.
The top 10 LINK spot market based on market capitalization at time of writing as seen on the screenshot above were:
For perpetual trading, LINK is also available on many exchanges including Binance, Bybit, KuCoin, Bitget. Below is a screenshot showing the LINK perpetual market list table, as seen on CoinGecko. This table was arranged by open interest, the highest at the top.
The Top 10 market offered highest open interest on LINK perpetual markets at time of writing were:
Meanwhile, based on CoinGecko data at the time of writing, LINK is available on eight trades in the futures market as shown in the screenshot of the CoinGecko webpage below. The screenshot shows the table ordered by open interest, the highest on top.
The 8 LINK futures markets as seen on CoinGecko were:
2 – My Opinion on This Token Today
2.1. Why I Traded This Token
The only reason why I traded this token was because at that time I saw that this token was included in the token that was forming an uptrend. And price performance has looked good in the last twenty-four hours. I think most people would have this reason as the main, if not the only, consideration.
2.2. How Long It Can Rise
Currently it is still very difficult to estimate this. We understand that currently the price of crypto tokens is very volatile and can change very quickly following the volatility of the crypto market which is still very uncertain. I think, the short-term trading, intraday, is the safest one at a time like this. I personally dare not expect great success in times like these. Being able to avoid bigger losses and market traps can actually be considered an advantage under certain conditions. Understanding the conditions, as well as my recent trading experience, I think the upward trend in LINK prices will only last for another day or two.
3 – Token Analysis and Trade Plan
At the time of writing, I found that LINK/USDT price chart on a 30 minute timeframe on TradingView showing an uptrend. I immediately analyzed the chart with the Median indicator and found that the Median indicator had given an uptrend signal some time ago and with a tendency to continue the price rising pattern, as shows by the marker (1) in the below image. In the analysis process I combined the Median with the RSI (Relative Strength Index, marker (2) in the below image). Both confirmed each other's signals that the uptrend will continue for some time to come.
Following that, I logged in to my UPbit account and checked LINK on IDR market. The combination of two EMAs (15 EMA and 50 EMA) convinced me more that it was a good time to enter the market.
So I made up my mind and placed a limit order buy for 1 LINK at the price of IDR 224,000.- (USD 15.56).
I confirmed the order.
The order was successfully filled a few moments later. The total amount of money I finally paid for the transaction, including fee was IDR 223,947.- (USD 15.55) as seen in the image below.
4 - Recommendation
At the time of writing, paying attention to the trend of price movement, I dare to recommend LINK for short term trading with sufficient caution.
For long term trading (HODL), I think several aspects can be considered, such as:
- Token popularity. LINK is one of the most popular crypto tokens and is among the top 30 tokens by market capitalization;
- Technology popularity and adaptability. Chainlink as the "mother" of the LINK token has become a fairly popular platform especially in the world of DeFi (Decentralized Finance), it has been adapted by many Decentralized Applications (DApps).
So, assuming everything related to blockchain technology goes well, I believe LINK has a great future. And so I dare recommend it.
Thanks
Thanks, Professor @shemul21 and Professor @abdu.navi03.
Pictures Source
- The editorial picture was created by me.
- Unless otherwise stated, all another pictures were screenshoots and were edited with Photoshop CS 3.
Reading Sources and Suggestion, Important Links
- https://chain.link/;
- https://blog.chain.link/;
- https://www.coingecko.com/en/coins/chainlink;
- https://coinmarketcap.com/currencies/chainlink/;
- https://azcoinnews.com/what-is-chainlink.html;
- https://www.investopedia.com/chainlink-link-definition-5217559;
- https://cointelegraph.com/news/chainlink-launches-startup-program-to-provide-blockchain-resources-to-early-stage-projects;
- https://www.gemini.com/cryptopedia/what-is-chainlink-and-how-does-it-work;
- https://zipmex.com/id/coin-info/link-id/;
- https://pintu.co.id/market/link;
- https://www.bizapedia.com/trademarks/chain-link-88404315.html;
- https://www.coindesk.com/business/2022/01/27/chainlink-labs-hires-diem-co-creator-christian-catalini-as-technical-adviser/;
- https://www.forbes.com/sites/michaeldelcastillo/2020/11/03/how-to-track-official-election-results-on-ethereum-and-eos/?sh=1cbe1d363269;
- https://chain.link/whitepaper;
- https://chain.link/education/blockchain-oracles;
Shared to twitter : https://twitter.com/aneukpineung78a/status/1507526479365967872.
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