The speculative fervor surrounding the autonomous lender Compound’s new digital token rose another notch Thursday as its already relatively lofty price more than doubled in 24 hours.
The rapid ascent of the COMP “governance” token comes as something a surprise given it was released just Monday and is still only trading on a handful of lesser cryptocurrency exchanges.
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The token is so new that not even cryptocurrency data sites are using consistent methodologies for deriving COMP’s market value. The website DeFi Market Cap bases the calculation on the 10 million tokens in existence, for a market value of about $2 billion. But CoinGecko bases its figure on a circulating supply of 2.56 million tokens, for a market value of $537 million.
COMP may have gotten an extra jolt Thursday, when the big U.S. exchange Coinbase, which was an early investor in Compound, announced in a blog post that Coinbase Pro accounts could start trading the tokens next week in all supported jurisdictions except New York State.
CoinDesk’s Brady Dale reported CoinFlip, which runs a bitcoin ATM network in the U.S., would list the dollar-linked stablecoin USDC on its machines, partly due to COMP-related demand.
The crypto exchange FTX also now plans to list COMP along with a suite of derivatives that will allow traders to make leveraged bets on the token’s price, Dale reported.
The apparent runaway success of the token offers a glimpse into just how frenzied the speculation has become over the future of decentralized finance, or DeFi – blockchain-enabled systems, mostly using the Ethereum network, tha...