Chainlink's Infosys Deal Falls Flat: Token Price Drops Amid Lacking Details
Chainlink's (LINK) recent partnership with Infosys has generated buzz in the crypto community, but the token's price took an unexpected hit after the announcement. On September 22, Chainlink and Infosys revealed a deal that would give LINK access to 1.7 billion customer accounts through Infosys's banking software.
The partnership sounds promising, but it lacks key details such as the names of participating banks, a timeline for implementation, and information on potential fees. As a result, traders viewed the figure as a testament to Infosys's reach rather than an immediate opportunity for Chainlink.
LINK dropped 4.4% within 24 hours of the news, trading at $12. This decline was more pronounced than both Bitcoin's 2.4% drop and Ethereum's 2.3%. Despite this setback, LINK has risen 8.3% over the past week and 9.1% over the past month.
The 1.7 billion customer accounts mentioned in the announcement represent those served by Infosys's systems, not a commitment from any banks to utilize Chainlink or hold LINK. The partnership provides Chainlink with a foothold in the legacy banking IT landscape, but this does not guarantee any immediate payment in LINK from a bank within that network.