Chainlink Admin Censoring Mentions Of “Coinbase Oracle” On Telegram

As we reported earlier in our Chainlink news, the major cryptocurrency exchange Coinbase has become a direct rival to Chainlink (LINK) and the system behind the cryptocurrency – by launching a price oracle. Rumors later emerged showing that the Chainlink admin of the Telegram groups is censoring users for mentioning Coinbase’s oracle.

The Coinbase oracle has been described by many as an astute, bold and wise move. However, not everyone felt this in the same way and some interpret the exchange’s move as a direct competition with Chainlink.

If we take a look at the new oracle system by Coinbase, it is safe to say that it will – in a way – eliminate the middleman (which is Chainlink) and make their data available to any relayer who is willing to use it for smart contracts activation via the Coinbase Pro API.

The fact that they also chose Ethereum highlights how this blockchain is a market leader in DeFi and a boost not only for ETH but also for many DeFi apps that are built on the pioneer smart contracting platform.

The chess move (as many describe it now) in the Coinbase news is the following….

Coinbase is apparently using an Open Orcle Standard which is open source and does not require payments as it is free. This is probably why the Chainlink admin tried to remove any accenting of the system or indirect promotion of Coinbase’s new oracle.

Some people on Twitter even pointed out to the funds that Chainlink spent in building this oracle network – and how “easy” it was for Coinbase to match that.

Coinbase just created a free version of what took #Chainlink $32m dollars and 5 years to create. Turns out you don't need an ERC20 token that has 65% of it's total supply held by two devs. Admins in the telegram are now banning people who mention it. What an absolute shitcoin.

— Strong ETH (@EthereumWiki) April 24, 2020

And then again, this is the seismic shift that some observers say Chainlink’s business model will go through. Due to reduced demand and if different trusted exchanges follow the lead, this could happen and Coinbase could step up its game as a direct rival to Chainlink.

Perhaps of this challenge, the Chainlink admin on the Telegram groups hid the mentions of Coinbase. On the other hand, the robustness of Chainlink and unique competitive advantage is that it aggregates data from different sources while simultaneously incorporating threshold signatures and mixing.