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. Binance stated that it did not charge a listing fee for introducing the pairings.
Binance now supports pairings between COMP and Bitcoin (BTC), Tether (USDT), Binance Coin (BNB), and BinanceUSD (BUSD).
COMP spikes 25% in five minutes on Poloniex
On June 25, Binance announced that it would list pairings for COMP one hour before they went live, spiking the token’s price by roughly 24.5% from $210 to $260 in five minutes on Poloniex.
COMP/USDT on Poloniex, 5-min chart: TradingView
However, the move was much more gradual on the leading U.S.-based exchange Coinbase, which saw COMP gain 24.5% over the course of 30 mins.
COMP/USD on Coinbase, 5-min chart: TradingView
Prices have since retraced 10%, with COMP changing hands for roughly $230 as of press time. COMP currently comprises the 24th-largest crypto asset by market cap.
DeFi tokens pump and dump
Decentralized finance (DeFi) tokens have recently seen significant volatility, with COMP’s triple-figure gains and subsequent 40% crash setting the tone for the launch of Balancer’s governance token BAL.
On June 24, Balancer posted a 235% gain after its first day of trading, before similarly plummeting by 40%.
MakerDAO’s Maker (MKR) token has also produced significant price action over the past month, gaining 100% from $360 to $720 before quickly crashing back to the mid-400’s.
MKR/USD on Bitfinex, 1D chart: TradingView
