Earlier this week it was reported that Mark Zuckerberg’s crypto project Diem was eying an asset sale. The association, as such, is considering this option two years post-Diem’s launch in order to monetize its intellectual property and any other economic value left in the crippled, once high-flying undertaking.
However, the project’s founders have already started branching out. In what is the most recent development, Diem’s co-creator & chief economist Christian Catalini has now become an advisor and is helping build Chainlink. In fact, Stanford cryptographer Dan Boneh too would work alongside Catalani.
The official announcement highlighted,
Diem co-creator & chief economist Christian Catalini & Stanford cryptographer Dan Boneh are now advisors helping build #Chainlink. Their expertise will contribute to the development of the Cross-Chain Interoperability Protocol (CCIP) as a global standard.
The CCIP is basically a new international standard for decentralized inter-blockchain messaging, data, and token movements. With CCIP, users would be able to move tokens and execute smart contracts across different blockchains via the Chainlink network.
In addition to working on CCIP, Catalini and Boneh are also set to bring their respective expertise in crypto-economics and cryptography to support the Chainlink Labs team on research that expands on the economics section of the 2.0 whitepaper.
Well, Chainlink’s fundamentals have become strong over the years, and under the novel mentorship, the project is bound to thrive even more.
What about the token’s short-term though?
Even though the overall market cues dictate consolidation at the moment, Chainlink is heading its own way and its investors are once again paying the consequences.
After surviving the bloodbath of December, Chainlink somehow managed to pull itself back up, rising from the abyss of losses. As the candles turned green LINK recovered by an exceptional 57% in a month. However, the crash that followed witnessed the altcoin plunge back to $15.2.
This resulted in the network once again realizing major losses as at one point over 57 million LINK became the victim of the crash. The last time Chainlink witnessed such losses was right before the recovery.
This was also verified by the fact that at the moment more than 66% of all addresses on the network are far away from observing any profits. Shockingly, the present situation is the worst LINK investors have seen in over 3 years.
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Even during the Covid-crash of March 2020, at least 36% of investors were still better off than others. The only other time the network witnessed such a huge chunk of its investors in a loss was back in December 2018 when losses befell over 80% of the total investors.
Additionally, at this stage, Chainlink’s correlation with Bitcoin is rising back up. On 17 January, LINK’s correlation with BTC stood at -0.73. However now, it stepped into the positive territory and is all the way back to +0.6. It means the prevailing market condition’s effects are having a much stronger impact on the token. So, unless Bitcoin goes back into recovery, LINK and its investors would continue to remain vulnerable to losses.
