Furious COMP Finance Investors Files Lawsuit Against the Protocol
- A group of investors sued Compound Finance, given its coin’s terrible performance.
- The lawsuit wants COMP’s offering to be revoked, as its unregistered.
- COMP has depreciated 96% from its all-time high of $911.20 last year.
A few disgruntled investors of the popular Web3 lending service, Compound Finance, have filed a lawsuit asking the business to halt sales of its native COMP coin. The plaintiff, among other things, is unhappy about the price performance of COMP since its launch.
The case noted,
Retail COMP purchasers generally have not fared well. The value of COMP peaked in May 2021 at nearly $500 per token, equating to a total market cap of about $4 billion. It soon halved in value, and in the fall of 2021, COMP’s market capitalization was a little more than $2 billion.
According to data from the market tracking site CoinMarketCap, COMP trades at $39.44, with a 3% increase in the last seven days. Interestingly, COMP has depreciated 96% from its all-time high (ATH) of $911.20 last year.
Furthermore, the unsatisfied investors claimed in the lawsuit that the US Securities and Exchange Commission (SEC) received no registration statements regarding the offering of COMP tokens. The plaintiffs argued:
“Users purchase COMP to gain an ownership share in the compound business, expecting …
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