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Compound is a lending protocol, created on the Ethereum blockchain. It allows users to take loans and lenders to provide them.

Ten days ago introduced a governance token COMP. Holders of this token debate, propose and vote on protocol changes. This token does not generate any economic benefit, it is only used to vote on the protocol's proposals.

There are 2,561,279 COMP in circulation of 10,000,000 COMP, it cannot be guaranteed, but a decrease in value could be shown when more COMP begins to circulate.

Currently, Compound has positioned itself in as little time as the largest DeFi project, is its value justified or will it be a crypto bubble soon to explode?

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I am quite familiar with the Compound finance dapp and can say that their model is stable and can run for ever. I was too amazed of the COMP growth and had a look at how the thing works but could not find any reasons for it to rise as such. The news about listing on popular exchanges might have boosted it's price or maybe their are some other internal leaks that are going to make the coin more valuable linking it's price to the success of the defi in future.

How their finance dapp work? Is it like staking or any form of holding your comp tokens on their platform and will earn something out of it? I just seen how drastic the price movement on the market. Also it got listed on big exchanges like Binance, Kucoin and coinbase only few days from their release. The progress is really fast and this is very surprising. I seen it on $60 price then now its almost over $250$ got decrease from 300 plus price. Hope someone can explain detailedly the compound system.

I'm also confuse how that kind of protocol/consensus works. If there is no economic benefit then what's the sole purpose of the token? why it was made if it's no sense economically?

I'm not judging nor saying that the project is ugly or bad but I just want to know more about it so that, I'll understand how it works and the concept that it's using.

I think there are bigger and better DeFi projects out there and many are under development. Definitely, i think when more supply will be released the price will adjust massively. Compound still needs to prove a lot of things and only time will tell, at the moment it has the hype and fomo that is driving the price. I wish all the best to the project and team it is a great addition to the growing DeFi market.

Do not seem to be a bubble rather seems like a solid project especially when DeFis are growing rapidly Compound has attracted everyone's attention and I like it as well and people who got in around 50 bucks per cmpd token are really in big profit already so it has proven to be worth the risk.

I would like to comment as someone who has done some research on the project you mentioned but has not yet invested in this project. First of all, yes, although the project is new, it has had a huge impact and it is also a cryptocurrency whose price has risen quite rapidly. Although we do not have much information about the project yet, my personal opinion is that this project will be successful in the long term because the project works very well and continues to operate without problems. I think this project is not a balloon, but its price may be swollen in the short term.

With the recent growth of this token am not surprised it attracted a lot of attention thus people will surely try to study it to know how it works, what it holds, if it will fail and so on. Nevertheless, the only thing I know about this token because I have never thought of investing is that, it has positioned itself as one of the biggest Defi projects whilst it is listed on several exchanges within a short period of time.
However, saying Compound is a bubble might be a matter of perspective which might be as a result of the fact that lending platforms so far tends to run into issues owing to crypto volatility and so on. On the other hand, another person might study what lies within and see something different and good altogether, therefore personal research into this token especially for those who intend to hold for long is very important, so that one don't end up being at the receiving (or lossing) end.

It certainly looks that way and we have had situations like this in the past. An idea gets introduced and if it does well, we have a whole lot of other copycats springing up just to cash in on the bubble. These things follow a pattern and we have seen it happen several times in this industry. Currently, DEFI is the new bubble like deflationary tokens/projects before it. The hype will soon die down and only projects with substance and use cases will be left standing.

Few days ago this alt being listed at coinmarketcap
https://coinmarketcap.com/currencies/compound
And the rank from this alt is 23 in cmc
But, why i don't see any announcement link about this project in this forum,,?

But it is down currently right? Compound (COMP) $233.47 USD (-10.85%)

If this is the COMP coin that we are talking here then obviously the bubble has been burst already. Nothing against them, but there have been accusations that they used the same names/symbol with another token, and it's really quite confusing unless you're really look closer and research more on which coin you want to invest.

It will be explode and you should look at the latest chart of compound https://coinmarketcap.com/currencies/compound/

The bubble burst and it has been starting to go down as soon as possible. It will not get a dump instantly but it will be dumped gradually from step to the step.

The small supply could be a reason for its astronomical rise. Investors like to pay attention to total supply of a coin/token. I do also, even not as an investor. Small supply easily can make people chase price because of scarcity. However, I don't like projects that promote lending. I learned a bitter lesson or two in 2017 from lending projects like Regalcoin, Bitcoinconnect, Glasscoin, just to mention but three. I won't go near any project promoting lending.

The process of circulation of Compound token is to distribute 2,534 comp token daily to the both suppliers and borrowers on their platform (https://compound.finance/governance/comp). Also it's right that the bubble will end soon because the circulation of Comp token is more than 2.5x from the previous top  Defi project Maker and if we compare the circulation and price of both coins/tokens , compound token's price must be below the price of $200 in terms of the circulations. And it's downtrend after touching the ATH.

Ok, its about time to look as to what happened to Compound now,

Compound Technical Analysis: COMP/USD succumbs to selling pressure, down 55% since its peak at $385


https://www.fxstreet.com/cryptocurrencies/news/compound-technical-analysis-comp-usd-succumbs-to-selling-pressure-down-55-since-its-peak-at-385-202007031839

So now we can say that it was a complete bubble waiting to be burst. And that's what had happened as predicted by many members. Of course, if you are an early investors and fill your bags then definitely, congratulations as you made a lot of money.

But for those who get trap, expensive lessons to learn.

^^ It's really a crypto bubble to begin with, all hype and based on our experienced, this kind of growth are not really sustainable in the long run, purely pump-and-dump scheme. Small cap doesn't mean a thing today, you can use it to market before specially in 2017. But investors are smarter now, sort of like a hit-and-hit, they invest get out before the bubble is burst and then look for another coin that has a lot of hype. Sorry for those who are trap now and can't get out unless they are willing to sell for a loss.

Let's see in few days, months and the price is still strong then we can not call it a bubble, although I keep wondering what makes the price to pump so hard in the period when all projects are down in price, what strong and solid partnership they have that can drive the price to such high! Am curious though.

COMP DeFi project leaves many wondering how manage the project price keeps surging that much but not for me, the team are very determined and they are doing all they can to make the project well recognized and embraced too, I don't believe this is bubble, we just have another project that do things better, that's all

I am also surprised that the price of this compound token exceeded the price of Ethereum at the time, although now there has been a decline.
But I think there will be another explosion if there is a development of their project. I hope they don't hit and run, so I can get more profit from them and the project will be more useful going forward

Compound is a company that allows people to earn money on the crypto they save. The project is part of Ethereum and more broadly, DeFi. Users can also borrow crypto from Compound by putting up collateral above a threshold defined by the project. 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.
Compound price today is $165.14 with a 24-hour trading volume of $10,296,087. COMP price is down -9.6% in the last 24 hours. It has a circulating supply of 3 Million coins and a max supply of 10 Million coins.

You don't need to wait for a few days and months because obviously, in the last couple of days the price really did a nosedive, a indication that it already reaches its peaked and time for investors to liquidate their COMP assets. If you are going to wait for a months, then another bubble will form and then it will remain in a cycle. We have seen this before, and unless they reach the top 10, I don't think that the growth will be sustainable.

Maybe you are right but we cant fully say they are succesful they are not even 1 year since they launched their token. The success of the project may lies on its stability. Lets wait for at least to see if they can sustain the achievement they make in a span of short time. Everyone must probably got shocked seeing them surging none stop for just few weeks and even suprised to see them on big exchange and platform so fast. Compound will probably one of the project potential to monitor with this year.

Don't know if it's just me but I really think the value of COMP is still very high even though it fell from 300+ I have a few open orders in between $100-150 on different exchanges so let see if it will get filled or not.

I believe COMP is another bubble, how can a coin just keep growing and growing and achieve a high price within a short time. This has started misbehaving in respect to price movement.

The bubble is burst right now and you can see that how compound was going down again to the bottom price and some people have been saying if the hype that has already gotten by comp was a short hype and this is also happening with almost all of new tokens.