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Compound Climbs to #19 on CMC 1 Day Before Coinbase Pro Listing
Compound Climbs to #19 on CMC 1 Day Before Coinbase Pro Listing

Will COMP Soar or Drop After its Coinbase Pro Listing?


Five days after Compound (COMP) launched and began trading on Uniswap and elsewhere, it has finally been listed on CoinMarketCap. The price per token has increased from $58 to $307 during that 5-day period and has given early investors a return of 190%. COMP's value in BTC has also grown from 0.00751139 BTC to 0.03140415 BTC. With a market cap of $756,182,928 Compound is currently ranked #19 on CoinMarketCap just below Houbi Token.

 

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So far Compound has had one of the most successful token launches in recent history. This might be due in part to multiple exchanges listing the token in the days following its launch. This includes Poloniex, Idex and MXC, with a Coinbase Pro listing coming tomorrow.

As we've previously mentioned, Compound is backed by multiple VC's including Poychain Capital and Coinbase Ventures. It is likely that they have assisted the DeFi token with listings on exchanges. It is possible that we will see COMP listed on even more exchanges in the future.

 

What Does Compound Do?

Compound is a lending protocol based on the Ethereum Network. It is an ERC-20 token with a total supply of 10,000,000 and a circulating supply of 2,561,279 COMP.

Essentially it is a DeFi lending protocol with high interest rates that makes it attractive to lenders. Some coins, such as BAT are receiving interest as high as 22% on the protocol. Currently it is ranked as the #1 DeFi protocol on DeFi Pulse with $542.2 M locked in.

This high interest rates and price of the token has caused suspicion, with some users on Twitter drawing unflattering comparisons.

 

 

COMP & The Future

With Compound's listing on Coinbase Pro tomorrow there are two probable outcomes. The first being a price increase. Seeing that Coinbase Pro is one of the most popular cryptocurrency trading platform in the US, demand for COMP could increase.

The other outcome is a possible dump once COMP is listed on Coinbase Pro. Seeing the massive price increase and attention the token has received recently, it could be an opportunity for early investors to take profits. Should that occur, expect a drop in COMP's price.

In the long term however, Compound will be a very interesting DeFi token to follow. Seeing the massive interest rates it offers, COMP could be a massive success. This does depend on if the high interest rates it offers is sustainable.

 

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Written by Jonathan Ganor

Writer & cryptocurrency aficionado

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