Don’t fret. We’ve compiled a FAQ for you below—dive in and explore.
Chainlink is a decentralized oracle network. Oracles are critical in the DeFi ecosystem since they are responsible for sourcing real-time data and feeding them to the DeFi protocols. Since DeFi protocols deal with a lot of money, they need quick access to accurate data.
Chainlink was launched in June 2017 by SmartContract – a for-profit company. The co-founders are Steve Ellis and Sergey Nazarov.
The native token of the Chainlink network is LINK. Chainlink nodes that provide accurate data and price feeds are rewarded for their service with the LINK token. This way, the Chainlink nodes are incentivized to act in the system’s interest and not spam the network with bad data.
Chainlink nodes can stake their LINK tokens in the network to bet on different data contracts and provide data. The more LINK you stake in the network, the more data contracts you receive, and the more rewards you get.
You can now buy LINK at CoinSmart with CAD/EUR/USD.
Crypto Asset Statement
Most recent update: November 3, 2021
This overview provides a summary of certain risks involved trading any crypto asset and is not exhaustive. Investors are encouraged to conduct their own research prior to trading any crypto asset.
No securities regulatory authority has expressed an opinion about the Crypto Contracts or Chainlink, made available on the CoinSmart Platform, including an opinion that Chainlink is not itself a security and/or derivative. Changes to applicable law may adversely affect the use, transfer, exchange or value of your crypto assets and such changes may be sudden and without notice.
Prior to listing Chainlink on the CoinSmart Platform, Simply Digital Technologies Inc. (SDT) conducted due diligence and determined that Chainlink is unlikely to be a security or derivative under Canadian securities legislation. Our analysis including reviewing publicly available information concerning:
Like all crypto assets, there are general risks associated with Chainlink including: volatility risk, liquidity risk, short history risk, demand risk, forking risk, code defects, regulatory risk, electronic trading risk and cyber security risk. For additional information of general risks associated with crypto assets, you may refer to the Risk Statement. Further, Chainlink provides oracle services to DeFi applications. However, oracles are regularly targeted by hackers via flash loan exploits. While Chainlink has so far shown very admirable security, one of these hacks could have a very negative impact on LINK’s valuation.
As a reminder, this Crypto Asset Statement is not intended to be exhaustive of all risks associated with trading Chainlink and we encourage you to conduct your own due diligence to determine whether trading Chainlink is right for you.
SDT is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re Simply Digital Technologies Inc. dated December 21, 2021 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.