LINK Between NEXO & Zeus Capital, Social Volumes Hit New Highs After the ‘FUD’
Crypto lending platform Nexo finance has been accused of trying to short Chainlink (LINK) that has been making a new high every other day last week.
A few days back, a report by Zeus Capital titled “The Chainlink fraud exposed,” called it “crypto’s Wirecard,” and for a 99% downside potential. The report, which had no working links or citations, is no longer available.
Over the weekend, Twitter users found a connection between Zeus Capital and Nexo. The website’s source code has several ‘Typeform' links connecting to Nexo’s website. Typeform, an online form building software, is also used by Nexo on its own site for its newsletter signups.
NEXO admitted the Typeform is theirs but said the link had been used for different marketing purposes as such easy to access by anyone.
According to Link Marines, Zeus Capital encouraged users to short LINK, and NEXO actually borrowed LINK from Aave to short the crypto asset as well. But according to NEXO, their OTC desks deal in LINK. Calling itself a DeFi-whale, Nexo defends that they have been handling $100+ million worth of transactions with the leading DeFi projects.
Moreover, a link between NEXO’s head of digital assets research, Simeon Rusanov, and Zeus Capital was also found.
“Simeon is basically LINK's biggest fan at our firm and his research even led to the risk team approving a higher LTV for the Nexo Oracle parameters for LINK,” stated NEXO and asked LINK marines to stop “unjustly” harassing him.
— ChainLinkGod.eth (@ChainLinkGod) July 19, 2020
Reportedly, Nexo is hiding the replies of people who are providing evidence about Nexo being the entity behind ZeusCapital.
According to Nexo’s official announcement on Telegram, it is “a cheap attempt at Chainlink’s and Nexo’s joint efforts and good work.”
Earlier this month, Nexo collaborated with Chainlink to boost its security and increase custody of user funds. The controversy has NEXO’s social volume hitting an all-time high with “Twitter growth beginning to ascend,” states Santiment.
While LINK prices have slid down from its ATH and are up 1.75% in the past week and 0.95% in the past 24 hours, NEXO’s has been down about 17% this past week. However, it is currently up 1.21%.
NEXO is calling people to be “smart” and not to “fall for this naive false flag operation,” and “hope you don't want bad karma in your corner.”
The company is hiring a professional investigation and forensics team to find the perpetrators who have been spreading this FUD.