In a recent YouTube video, the popular pseudonymous crypto analyst known as Chico Crypto explained why he believes Chainlink ($LINK) is on a trajectory toward a $200 valuation. He discussed Chainlink’s recent developments, potential partnerships, and its role in the evolving landscape of traditional finance and cryptocurrencies.
Chainlink is a decentralized oracle network designed to bridge the gap between smart contracts on the blockchain and real-world data. It’s a critical component in the blockchain ecosystem, as smart contracts, by their nature, cannot access data outside their network. Chainlink provides a reliable way to bring in external data to the blockchain in a secure and tamper-proof manner.
The network relies on a variety of oracles that independently fetch data from external sources. These oracles then aggregate this data and feed it into the smart contracts. This process ensures that the data is accurate and the source of the data is not a single point of failure.
The LINK token is an integral part of the Chainlink network. It is used as the currency within the Chainlink platform. Data providers are paid in LINK tokens for their services, and users who require external data for their smart contracts pay using LINK. This token economy incentivizes the operation and security of the network. The LINK token operates on the Ethereum blockchain as an ERC-20 token, making it compatible with a wide range of wallets and other Ethereum-based services.
Chico Crypto started by highlighting Chainlink’s resilience, likening it to the character Joe Dirt for its ability to persist despite challenges. He noted Chainlink’s significant price increase from around $5.85 in mid-September to over $11, alongside a market cap growth of $3 billion in just a month and a half.
A key focus of the video was Chico Crypto’s prediction that Chainlink could be involved with Hong Kong’s central bank digital currency (CBDC). He based this prediction on several factors, including Chainlink’s past successful partnership predictions and its potential involvement with Standard Chartered, a bank working with Hong Kong on digital currency initiatives.
Chico Crypto referenced the recent partnership between the Depository Trust & Clearing Corporation (DTCC) and Chainlink. He emphasized the significance of this collaboration, as the DTCC processes a vast majority of global securities transactions. He played a clip from Chainlink’s SmartCon, where Steven Prosper, Executive Director of DTCC, discussed the potential of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) in supporting multiple blockchains.
The video also discussed Standard Chartered’s role in piloting stablecoins and CBDCs using the Universal Digital Payments Network (UDN), developed by the China-backed Blockchain Services Network (BSN). Chico Crypto pointed out that BSN has integrated Chainlink’s oracles, suggesting a connection between Chainlink and Standard Chartered’s initiatives.
Chico Crypto highlighted Chainlink’s interaction with Invest HK, a Hong Kong government department focused on foreign investment. He played a clip from Chainlink’s SmartCon featuring King Leung, head of financial services and fintech for Invest HK, praising Chainlink’s vision and CCIP. Additionally, he noted Joseph Chan of the Hong Kong SAR’s attendance at SmartCon, discussing Hong Kong’s CBDC pilot program and hinting at Chainlink’s potential involvement.
Looking ahead, Chico Crypto pointed out that Sergey Nazarov, co-founder of Chainlink, is scheduled to speak at the Hong Kong Fintech Week. Nazarov’s topic, “Cross-Chain Interoperability: The Missing Piece for Tokenized Real-World Assets,” was highlighted as potentially significant, especially in the context of Hong Kong’s efforts to tokenize its currency.
Chico Crypto concluded by inviting viewers to share their thoughts on his predictions and the future of Chainlink. He emphasized the importance of community discussion and engagement in understanding the evolving landscape of cryptocurrency and blockchain technology.
Interestingly, in the past ten days since this video was released, the $LINK price has increased from $11 to over $16.
Featured Image via Pixabay
