Coinbase exchange on Tuesday evening launched trading in its own token for the Compound (COMP) project. COMP became available on the decentralized Uniswap exchange at the beginning of last week and during that time showed an impressive growth of several hundred percent.
The first deals on Coinbase took place at a price of $ 427, which exceeded previous highs, but soon the token exchange rate returned to levels of about $ 300. Over the next hours, COMP continued to decline and at the time of publication is trading at around $ 212.
Analysts at Galois Capital suggestthat some of Compound’s early investors decided to take advantage of Coinbase’s liquidity. Since the opening of deposits on Coinbase, he sent 25 transfers at 2,000 COMP to the exchange wallets and could try to sell them at the time of the opening of trading.
According to analysts, Bain Capital or Coinbase itself may be behind these transfers. They also admit that a whale may still have between 25,000 and 87,500 COMP. An alternative version is the provision of tokens for marketing purposes.
Observers note that the recent increase in activity in the space of decentralized finance has a fundamental difference from the ICO mania 2017-2018.
“The previous time, when the demand for Ethereum (ICO) increased sharply, along with this, ETH went up. Now the demand for Ethereum (DeFi) is growing again, but there is no effect on ETH, ”says Mythos Capital founder Ryan Adams.