Compound (COMP) is a decentralized blockchain-based protocol operating on the Ethereum network. COMP serves as the protocol's ERC-20 token, enabling decentralized finance (DeFi) functionalities directly on the Ethereum blockchain. Users can lend cryptocurrencies to earn interest or borrow assets through autonomous smart contracts.
Latest COMP Coin News and Developments
- Upbit Listing: COMP surged over 30% to $71.81 after Upbit announced a KRW trading pair.
- Founder Activity: Compound's founder, Robert Leshner, reportedly sold 50,000 COMP (~$3.19M) via Galaxy Digital, depositing the tokens into Binance.
What is Compound (COMP)?
Compound is an Ethereum-based software that incentivizes decentralized networks to operate traditional money markets. As a leading DeFi protocol, it eliminates financial intermediaries like banks, allowing users to:
- Deposit crypto into lending pools.
- Earn interest via cTokens (e.g., cETH, cDAI).
- Borrow assets with over-collateralization.
COMP tokens reward users for interacting with the protocol (e.g., borrowing, repaying).
Development Team
Founded in 2018 by Robert Leshner (CEO) and Geoffrey Hayes (CTO), Compound Labs has raised ~$71M from investors like Andreessen Horowitz. Key milestones:
- 2019: Compound v2 launched.
- 2022: Compound III (Comet) released.
How Compound Works
- Lending Pools: Each asset (ETH, COMP, etc.) has a dedicated pool.
- Over-Collateralization: Borrowers must deposit more than they borrow to mitigate defaults.
- Interest Rates: Dynamically adjust based on supply/demand.
COMP Tokenomics
- Total Supply: 10M COMP.
Distribution:
- 42% to users (4-year vesting).
- 24% to shareholders.
- 22% to team (4-year vesting).
- 7.75% for community governance.
COMP Price Analysis
| Metric | Value |
|---|---|
| Current Price | $46.32 (-0.36%) |
| Market Cap | $430.4M (Rank #118) |
| All-Time High | $909.34 |
| Circulating Supply | 8.93M COMP |
Future Outlook: Is COMP a Good Investment?
COMP peaked at $910.54 in May 2021 but fell to $26.41 by mid-2022. Analysts predict:
- Short-Term: Aligns with crypto market trends.
- Long-Term: Potential to outperform due to Compound’s robust DeFi infrastructure.
Price Predictions:
- CoinCodex: $636.78 by 2025 (+1,000%).
- DigitalCoinPrice: ~$250 by 2025.
How to Buy COMP
- Register on a reputable exchange like BTCC.
- Deposit USDT via fiat or crypto.
- Trade COMP/USDT pairs with flexible leverage (up to 10x for beginners).
FAQ
Q: Is COMP a governance token?
A: Yes, holders vote on protocol upgrades and interest rates.
Q: What’s Compound’s main advantage?
A: No intermediaries—loans are automated via smart contracts.
Q: How does COMP generate value?
A: Through DeFi adoption and governance participation.
Conclusion
COMP combines DeFi innovation with strong utility. For exposure to decentralized lending, consider adding COMP to your portfolio. Always conduct your own research before investing.
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