Summary ChainLink (LINK-USD) presents a compelling value investment opportunity amid current depressed prices and accelerating tokenization trends. Recent AWS (AMZN) adoption of ChainLink validates its real-world utility and could drive broader enterprise and DeFi adoption. I am accumulating GLNK ETF to dollar cost average, expecting significant upside if Web 3.0 and asset tokenization accelerate. Patience is key; I anticipate ChainLink will outperform the S&P 500 over a four-year horizon, with potential for outsized returns. The Value Investing Approach In the two decades that I've been writing about stocks and finance, the main thing that I've learned is that readers just want a hot stock tip. I've also learned that I'm not qualified for dishing out short-term price targets. That's because they don't work for me, or most prognosticators. The only sources that are backed up by successful outcomes in the momentum tranche of investing are Seeking Alpha's Quant Ratings and Investor's Business Daily's CANSLIM method. Both have terrific track records. The caveat with both of these techniques is that you must be tethered to your smartphone or computer to be able to fully capitalize on their investing suggestions. Although the majority of people are online 24/7 these days and may be able to take advantage of these services, I've been schooled in value investing and tend to take a less active approach to my finances. ChainLink Investment A few months ago I wrote about cryptocurrency ChainLink ( LINK-USD ) and how I believed that the depressed price was great for accumulation. Here's a link to that article which covers a lot of background information about the company and crypto in general. The price has hovered around $9 for almost three months and I've been adding to my position in the Grayscale ChainLink Trust ETF ( GLNK ), a spot price ETF, to dollar cost average down. It was selling for $30 six months ago. I'm slightly underwater on the investment and lag the S&P 500, but believe that if I'm patient, I'll reap the rewards. At the worst, I'll double my investment in four years which will be better than an investment in the S&P 500 based on historic trends. If the development of WEB 3.0 continues, and the tokenization of everything financial accelerates, then I've got a potential ten bagger on my hands. With the advent of social media forums such as Stocktwits and Reddit's Wall Street Bets ( RDDT ), ChainLink could even become a meme crypto. It happened five years ago, and lightning could strike once more. Amazon Web Services In the altcoin bull market five years ago, it was all crypto hype. Now we're talking about real world use cases. Two weeks ago, Amazon Web Services "AWS" ( AMZN ) adopted ChainLink for their cloud service. Although many small and bootstrap organizations utilize AWS, it's the corporate behemoths that are the big game for ChainLink. The partnership legitimizes DeFi applications much the same way that AOL's purchase of Time Warner in the 1990s solidified the Internet era. It's not an apples to apples comparison, but you get the drift. What the partnership offers is simplified enterprise adoption. Because ChainLink is now listed on the AWS marketplace, ChainLink Data Feeds, Data Streams, Proof of Reserve, and the Chainlink Runtime Environment will be available in a one stop shopping environment. As stated on the ChainLink Website : "At SmartCon, Vijay Krishnan, Sr. Partner Solutions Architect at AWS Cloud, announced the new AWS Chainlink Quickstart, a one-click solution enabling anyone to launch a production-ready Chainlink node. With this integration, node operators and data providers joining the Chainlink ecosystem can start connecting to blockchains within minutes or hours instead of weeks or months—significantly lowering the technical barriers to entry and accelerating the amount of high-quality data available to decentralized applications." ChainLink already partners with other hyperscalers such as Google Cloud ( GOOG ) and Microsoft's Azure ( MSFT ) which offer similar decentralized data solutions. The addition of AWS to the fold gives ChainLink a 64% exposure to the hyperscale market with AWS in the lead with a commanding 28%. This could propel market wide adoption of Decentralized Finance. It's only good news for ChainLink. ChainLink is secure. AWS is secure. It's a nice combination. It's also primarily what the Fortune 500 looks for when deciding on a software package. I am not alone in my belief in this, but we are in the midst of the fourth industrial revolution. The current era amalgamates A.I., robotics and Web 3.0 which is the tokenization of all things analog to digital. ChainLink is the bridge that converts off-chain assets into digital assets. Stocks, bonds, options and real estate are all becoming tokenized at an accelerating rate. With a 63% - 70% market share in the crypto oracle space, they're in the lead and I believe this will translate into increased revenues. Tokenization Growth (Wiseway Tec) Mr. Market The graph above (provided by Wiseway Tec), gives you a ballpark figure of the type of growth we are dealing with in tokenization Growth - CAGR [compound annual growth rate] of about 45% for the next few years. If you search for tokenization of real world assets, the Internet is rife with charts and graphs all coming to the same conclusions - this is where the action is going to be for growth investors. Right now, we have a unique opportunity to buy ChainLink as a token or as a spot-price ETF as a value investment. Value investments tend to sit, then run. Currently, ChainLink is in neutral. I'm taking a page from the Warren Buffett playbook and accumulating while the price is down. It's a Mr. Market situation if you follow the teachings of Benjamin Graham. Prices are low right now so Mr. Market is in a bad mood and gives a great price to purchase the shares. I don't think it will take more than a year for ChainLink to get in gear. It's not if, it's when. I'm prepared to wait.
