A report by Flipside Crypto states that traders are liquidating their Compound (COMP) holdings as quickly as the chance presents itself; with main trade listings performing as catalyst.
COMP flows. Supply: Flipside Crypto.
Change listings led to dumps
The report states that as quickly as COMP was getting listed on main exchanges like Binance (BNB) or Coinbase, there have been observing main flows from the traders to exchanges. As well as, there was allegedly a bigger switch constituted of “the Compound staff to DeFi. This correlates with the unannounced itemizing of COMP on Uniswap”.
When buying and selling on Coinbase ensued on June 23, it brought about “a big drop in worth, in all probability pushed by this one investor liquidating.”
COMP worth. Supply: Nomics.
Most of Compound customers are speculators
The report finds that the overwhelming majority of Compound customers are speculators who don’t interact in lending and borrowing, stating, “Compound customers maintain 23.8K of the energetic provide, whereas wallets who aren’t utilizing the protocol maintain a whopping 680.4K.”
Nonetheless, Compound has experienced rapid growth within the final couple of months. It overtook Maker (MKR) in complete worth locked (TVL) of Ether (ETH) in accordance with a current ConsenSys DeFi report:
“On June 21, for the primary time, Compound’s TVL surpassed that of Maker’s. By the tip of the quarter, $392M USD was locked in Maker and $570M USD was locked in Compound.”
We approached Compound Finance CEO Robert Leshner for remark, however he stated “I will not go on report and debate false info, it provides credence to unhealthy reporting and smears. I’ll nonetheless, after your article is printed, level out how flawed it’s.”
— to cointelegraph.com