Latest Poloniex News

  • Derivatives Traders May Have Manipulated COMP Rally
    Derivatives Traders May Have Manipulated COMP Rally
    Some analysts believe that Compound’s Governance Token’s dramatic rally and crash may have been engineered by derivatives traders. A number of analysts have suggested the meteoric price performance of the Compound Governance Token (COMP) may have been orchestrated using derivatives. After initially changing hands for approximately $80 each upon its June 18 listing on Poloniex, COMP quickly rallied 500% to post highs above $380 June 21 as news of a Coinbase listing appeared to entice buyers. COMP/USDT on Poloniex, 1hr chart: TradingView Since the high, COMP has shed 34% of its value and is currently trading for $253.  Was COMP’s rally driven by organic demand? In a June 25 article, independent crypto blogger and Decentraland product lead Tony Sheng noted that many traders over the past week or so believed that triple-figure priced COMP was extremely overvalued, resulting in bears paying from 5% to 10% in daily fees to short the asset using derivatives. Despite this bearish sentiment and the fact that COMP tokens can be earned through yield farming, COMP prices continued to rally aggressively, with Sheng suggesting that disproportionate volume on FTX’s derivatives largely fuelled the rally. While spot listings on FTX and Poloniex generated $1.5 million in 24-hour volume leading up to COMP’s Coinbase listing, more than $6 million worth of perpetual swap contracts were traded on FTX over the same period. With COMP comprising a highly illiquid market upon launch, the article suggests that traders may have been able to drive up spot prices with relatively small buy orders to ensure profits on much larger long positions taken using FTX’s contracts: “The long and short of it (haha) is that because of the relatively large size of the COMP Perpetual Swap market, it would be profitable to buy the Perp and then buy spot in significant enough size to move the price, amplifying gains in the Perp and squeezing the shorts.” On June 24, the fou
  • COMP Token Spikes 25% on Surprise Binance Listing
    COMP Token Spikes 25% on Surprise Binance Listing
    Surprise Binance listings have led to a sudden 25% spike in the price of Compound’s Governance Token. The price of the Compound Governance Token (COMP) has jumped by one-quarter on news of a surprise listing on leading cryptocurrency exchange Binance. COMP tokens began trading approximately one week ago, quickly making triple-figure gains and attracting millions in trade volume.
  • Compound Token Suffers Heavy Losses But Still Dominates DeFi Rankings
    Compound Token Suffers Heavy Losses But Still Dominates DeFi Rankings
    After a Coinbase Pro listing drove Compound Governance Token prices up more than 100%, the market is now crashing back to Earth. Compound Governance Token (COMP), the native token to the popular decentralized finance (DeFi) protocol Compound, has suffered heavy losses after its meteoric first day of trading on Coinbase. After trading as high as $427 on Coinbase Pro on Tuesday, COMP has fallen back below $250 within 8 hours of the local high.