How to buy and hold COMP with Wigwam
1. Choose a token number that you want to buy
2. Create a wallet, where to store your crypto
3. Pay with credit card
4. Check your crypto in the created wallet
Why Wigwam is the best crypto wallet for Compound (COMP) storage
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Compound (COMP) Tokens
The COMP token is the native token of the Compound system, a decentralized blockchain protocol based on the Ethereum network. COMP is an ERC-20 token that supports community governance and decision-making in the Compound ecosystem. It enables COMP token holders and delegates to actively engage in any protocol upgrade discussions and voting.
About Ethereum Network
COMP token was officially launched on Ethereum in 2018. Ethereum is a widely used blockchain network that introduces the concept of decentralized applications (dApps), smart contracts, and other decentralized solutions to the cryptocurrency industry.
In 2022, Ethereum upgraded itself from a proof-of-work to a proof-of-stake consensus mechanism; improving its overall energy consumption.
The compound protocol operates via smart contracts and mint cTokens whenever users deposit Ethereum and ERC20 assets. Further, the lenders are rewarded with COMP tokens on the basis of the cTokens amount.
COMP Use Cases
- Governance: The token holders can participate in governance decisions such as suggestions, debate, and voting to apply changes in the compound protocol via on-chain voting and proposals.
- Borrowing/lending: Upon borrowing or lending cryptocurrencies on the Compound platform, the users can earn COMP tokens resulting in a higher Annual Percentage Yield (APY).
- Staking: Token holders can actively participate in decision-making by locking their COMP tokens, which will guarantee the Compound network runs smoothly.
- Bug Bounty Program: Compound’s bug bounty program offers rewards of $500 to $150,000 to individuals for discoveries to prevent the loss of assets, asset freezing, or any kind of harm to users.
COMP runs on Ethereum’s ERC-20 standard. At present, there are 7.2 million + COMP tokens in circulation, out of 10 million in total. On a daily basis, approximately 1,869 COMP tokens are distributed to the Compound users. This distribution is allocated to each market such as ETH, DAI, USDC, etc.
COMP token distribution:
- Founders & team: 22.5%
- Community: 7.7%
- Liquidity mining: 42.1%
- Shareholders: 24%
- Future team members: 3.7%
There are approximately 218,060 holders of COMP. These token holders can access their voting rights to any wallet address. There must be a minimum of 100 COMP tokens in the wallet to build a proposal and 25,000 tokens to become eligible for governance proposals.
As per the predictions of DigitalCoinPrice, the Compound value will see a hike of 219.12% at the end of 2026, reaching the value of $211.11. Various technical analysis indicators showed bullish signals on January 16, 2024, however, other indicators showed bearish signals for Compound tokens.
Here, it is very crucial to get a glimpse of various factors that have a drastic impact on the price of COMP. Factors such as protocol upgrades, technological advancements, market trends, and broader industry developments may cause the price to fall or rise. Therefore, assessing these pointers beforehand enables market participants to make informed decisions.
Acknowledging various risk factors is necessary before investing in Compound. The major challenge that the Compound is facing is the risk of oversupply. A few other factors are regulatory changes, market volatility, and competition in the market. The potential competition faced by the Compound network is from UniSwap, Aave and MakerDAO. With a motive of partnering with these competitors, Compound is paving the way for more opportunities for users.
This article is for informational purposes only and should not be interpreted as financial or investment advice. The views expressed herein represent solely the opinion of the author and are not intended to provide specific trading or investment recommendations. We do not guarantee the accuracy, completeness, or reliability of the information contained in this article. The cryptocurrency market is known for its high volatility and unpredictable fluctuations. Investors, traders, and anyone engaging with cryptocurrency are advised to conduct thorough research, consider a variety of perspectives, and acquaint themselves with applicable local regulations prior to making any investment decisions.
You can purchase the COMP token directly in Wigwam blockchain wallet or from popular cryptocurrency exchanges such as Coinbase, Kraken, Binance, and many more.
Yes, you can stake COMP tokens. When a COMP token is staked, the participants become eligible in the decision-making process within the Compound ecosystem. In addition to this, staking also offers rewards to the participants.
To add a COMP token to the crypto wallet, follow the below-defined steps:
Open your crypto wallet, Navigate to “Manage Assets”, and then click on “Add Token” and then enter the COMP token details as follows:
- Token Contract Address for COMP: 0xc00e94Cb662C3520282E6f5717214004A7f26888
- Token Symbol: COMP
- Decimal Precision: With 18 Decimals
The major associated risk factors are regulatory changes, market volatility, and competition in the market.