Compound

Token

Bitcoin

Drops

<ul>
 <li>The price of the Compound’s native token, COMP, has dropped over 8%, from $51.02 to $47.21.</li>
 <li>Compound Finance faces a governance attack with a malicious actor manipulating the DAO’s decision-making process.</li>
 <li>A whale known as Humpy and a group called the Golden Boys set up the attack.</li>
</ul>
In a dramatic turn of events for the Compound protocol, the price of its <a href="https://thenewscrypto.com/compound-comp-price-prediction/" target="_blank" rel="noopener noreferrer nofollow">native token</a>, COMP, has plummeted over 6%. This decline follows allegations of a governance attack that has thrown the Decentralized Autonomous Organization (DAO) that runs Compound into a mess.
A governance attack is a malicious attempt to manipulate a DAO’s decision-making processes. This typically involves accumulating enough voting power to sway outcomes in favor of the attacker. The attacker takes advantage of the easy trade and open access to governance tokens.
The recent governance attack on <a href="https://thenewscrypto.com/tag/compound/" target="_blank" rel="noopener noreferrer nofollow">Compound</a> was meticulously set up by a whale known as Humpy, who, along with a group called the Golden Boys, managed to pass a controversial proposal. This group aimed to allocate $24 million worth of COMP tokens to a yield-bearing protocol they controlled, named goldCOMP.
<h3 class="wp-block-heading" id="h-how-the-compound-finance-attack-unfolded">How the Compound Finance Attack Unfolded</h3>
The saga began in early May with <a href="https://compound.finance/governance/proposals/118" target="_blank" rel="noopener noreferrer nofollow">Proposal 118</a>, which suggested transferring 5% of COMP’s treasury to a multi-signature wallet managed by the Golden Boys. This proposal quickly dismissed due to community members flagging suspicious activities around it. Steadfast, the group attempted a similar strategy with <a href="https://www.comp.xyz/t/governance-security-notice-goldcomp-proposal-247/5220" target="_blank" rel="noopener noreferrer nofollow">Proposal 247</a>. That supports investing 5% of COMP tokens into a goldCOMP vault to provide passive income for COMP holders. This proposal also failed to achieve a quorum and was subsequently canceled.
However, their persistence paid off with <a href="https://compound.finance/governance/proposals/289" target="_blank" rel="noopener noreferrer nofollow">Proposal 289</a>, which narrowly passed with a vote of 682,191 to 633,636. This proposal allocates 499,000 COMP tokens, valued at approximately $24 million, from the Compound’s treasury to the goldCOMP protocol for a year. The approval has led to accusations of governance manipulation. Critics allege that the Golden Boys acquired large amounts of COMP tokens to influence the vote.
Michael Lewellen, a security advisor for Compound, highlighted connections between the token acquisitions and the Golden Boys’ proposals. Recent events have put Compound Finance under intense scrutiny.
Currently, COMP is trading at $48.08 with a market cap of $401 million. Despite the price drop, the token’s daily trading volume surged by over 75% to $46 million. That reflects heightened market activity amid the controversy.
Highlighted News Of The Day
<a href="https://thenewscrypto.com/wyoming-university-launches-first-ever-bitcoin-research-institute/" target="_blank" rel="noopener noreferrer nofollow">Wyoming University Launches First Ever Bitcoin Research Institute</a>

COMP Token Drops 8% Amid Governance Manipulation Allegations

Зміст

TheNewsCrypto

Інші статті, опубліковані 29 лип. 2024 р.

Tokyo's BitFlyer Acquires FTX Japan, Aims For Crypto ETFs

Compound Finance Passes $24M Proposal Amid DAO Dispute

Large Shiba Inu Withdrawals Shake Crypto Market, Where Are They Headed?

Bitcoin Mining Pool Introduces Mempool Accelerator for Faster Transaction Approvals

COMP Down 6.7% after Supposed ‘Governance Attack’ on Compound DAO

Crypto Scams on the Rise: Fake Video Conferencing Apps Target Job Seekers for Crypto

Приєднуйтеся до нашої безкоштовної розсилки для отримання щоденних оновлень щодо крипто!