- Zeus Capital has seen multiple liquidations as LINK has rocketed to $13.88
- The promised crash to $0.00001 hasn’t happened, leaving Zeus Capital out of pocket by millions of dollars
- The FUDsters have reloaded and have another short in place
Zeus Capital, the mysterious company that claimed that Chainlink was a fraud and that a “fair value” of a LINK token was $0.155, seems to have been liquidated multiple times in their short trade. Evidence emerged over the weekend that the wallet thought to belong to the company had been liquidated at least twice, with over $10 million lost, caused by the rapid rise in the value of the LINK token, which has shot up 70% in the last week alone. However, they have found more funding and are hoping to recoup their losses with another short.
Zeus Capital Loads the FUD machine
Zeus Capital shot to fame in Twitter circles in mid-July when it published a lengthy report which claimed Chainlink was a “Russian pump and dump” scheme and it would soon fall to $0.00001. It has spent the three weeks since then paying Twitter influencers to post charts suggesting that the LINK price was about to collapse and posting promoted tweets made to look like trading advice.
It was soon suspected that Zeus Capital had taken a very heavy short position on LINK and were actively trying to dump the price through FUD, although the details weren’t known for some time. However, blockchain researchers recently linked a wallet to the company, a wallet that revealed a loan of 1.56 million LINK (worth $17 million at the time) against $21.97 million of USDC.
LINK Short Play Goes Spectacularly Wrong
Zeus Capital clearly took out a short position and then loaded the FUD cannon, but the stunt has backfired spectacularly – LINK has instead gone on a tear, resulting in multiple liquidations for the company. Two liquidation points, $11.28 and $12.80, were hit in the space of one hour on Saturday when LINK shot from $11.58 to $13.80. Crypto Twitter celebrated the liquidations in typical style, with the actions of Zeus Capital achieving the impossible and uniting followers of all tokens against a common enemy:
Link Marines Everyone on CT
Liquidating Zeus Capital
— moon is tweeting (@MoonOverlord) August 8, 2020
The LINK price action also made a mockery of a tweet send by Zeus Capital last week:
We’ve unlimited resources to go after $LINK.
You can’t short squeeze us.
The attempt to manipulate the market and save LINK from today’s flash crash is being documented and added to the lawsuits.
Everyone involved will face the consequences.$LINK will drop to $0.0001 as in March pic.twitter.com/OHQe7Kz63H
— Zeus Capital (@ZeusCapitalLLP) August 2, 2020
Zeus Has More in the Tank
Despite these huge liquidations, it seems that Zeus Capital has been able to find more funds with which to short LINK – the wallet currently has 510,628 borrowed LINK ($6.78 million) on $8.75 million USDC, meaning it still has a net worth of just under $2 million:
The LINK liquidation price is $13.57, and with the entire crypto community behind them, who’s to say that Zeus Capital won’t be facing further losses in the days to come?