The DeFi liquidity platform was relatively unknown in wider crypto circles, but the huge surge in token prices last week certainly changed that.
Defimarketcap.io lists COMP as the largest DeFi token with a market cap of $2.3 billion. This figure is a little misleading as it uses the entire supply.
On June 18, Coinbase Pro announced that it would be accepting COMP deposits on June 22 and listing the DeFi token the following day, a week after the distribution began.
Coinbase owns COMP tokens as a result of a 2018 investment in Compound.
Coinbase intends to maintain its investment in Compound for the foreseeable future and maintains internal policies that address the timing of permissible disposition of its digital assets, including COMP tokens.
Two spurious transactions of COMP tokens yesterday totalling $100 million could have been made with tokens that Compound has lent market makers to provide initial liquidity on Coinbase, as suggested by one observer.
Compound Finance is very different from Bitconnect, but if a few whales can manipulate token prices that much in such a short space of time, its legitimacy must be questioned.