A new report sheds some light on Compound (COMP) in the altcoin news, showing that investors are dumping the Compound tokens as soon as the project gets listed on exchanges. We can also see that the majority of the supply is now held by speculators.
Flipside Crypto issued a new report and stated that investors are dumping their Compound (COMP) tokens as soon as the opportunity arises. In fact, the report shows that major exchange listings are acting as catalyst. One visual (shared below) designed by the company shows the COMP flows.
In the report, we can see that as soon as COMP was getting listed on major exchanges like Binance or Coinbase, there were some major flows from the investors to exchanges. In addition to the fact that investors are dumping their COMP holdings as soon as the token gets listed, there was allegedly a larger transfer already made from “the Compound team to DeFi. This correlates with the unannounced listing of COMP on Uniswap”.
The Coinbase news showed that when trading on the exchange continued on June 23, it caused “a large drop in price and was probably driven by this one investor liquidating on the markets.” Below is the breakdown of the COMP price by Nomics.
The report also finds that the vast majority of Compound investors are dumping their coins once there is a listing. The majority of them, according to some sources, are actually speculators who do not engage in lending and borrowing. The report states:
“Compound users hold 23.8K of the active supply, while wallets who are not using the protocol hold a whopping 680.4K.”
Nonetheless, the price of Compound has experienced rapid growth in the last couple of months, overtaking Maker (MKR) in total value locked (TVL) and Ether (ETH) as one latest report from ConsenSys DeFi showed:
“On June 21, for the first time, Compound’s TVL surpassed that of Maker’s. By the end of the quarter, $392M USD was locked in Maker and $570M USD was locked in Compound.”
There haven’t been any comments from the Compound team or anyone related to the token, even though the CEO once stressed that they are not debating any false information.
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