Some crypto companies are fully compliant, fully regulated, and still can't keep their bank accounts. Learn why the financial system is quietly freezing them out.
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Why can't a fully compliant, regulated crypto business secure a bank account in 2025?
If you're operating in this space, you already know the answer. You've lived through it. You've submitted the documentation, walked through your AML procedures, and demonstrated your regulatory compliance… only to be rejected. Or worse still, waking up to find your existing account frozen, with no real explanation and no path forward.
This isn't about isolated cases or bad actors being weeded out. It's a pattern of systematic risk aversion that's creating real barriers to growth across the entire sector, and it's throttling one of the most significant financial innovations of our generation.
We're Tap, and we're building the infrastructure that traditional banks refuse to provide.
The Economics Behind the Blockade
Let's examine what's actually driving this exclusion, because it's rarely about the reasons banks cite publicly.
The European Banking Authority has explicitly warned against unwarranted de-risking, noting it causes "severe consequences" and financial exclusion of legitimate customers. Yet the practice continues, driven by two fundamental economic pressures that have nothing to do with your business's actual risk profile.
The compliance cost calculation
Financial crime compliance across EMEA costs organizations approximately $85 billion annually. For traditional banks, the math is simple: serving crypto businesses requires specialized expertise, enhanced monitoring, and ongoing due diligence. As a result, it's cheaper to reject the entire sector than to build the infrastructure needed to serve it properly.
The regulatory capital burden
New EU regulations impose a 1,250% risk weight on unbacked crypto assets such as Bitcoin and Ethereum. This isn't a compliance requirement; it's a capital penalty that makes crypto exposure commercially unviable for traditional institutions, regardless of the actual risk individual clients present.
In the UK, approximately 90% of crypto firm registration applications have been rejected or withdrawn, often citing inadequate AML controls. Whether those assessments are accurate or not, they've created the perfect justification for blanket rejection policies.
The result? Compliant businesses are being treated the same as bad actors; not because of what they've done, but because of the sector they're in.
The Real Cost of Financial Exclusion
Financial exclusion isn’t just an hiccup; it creates tangible operational barriers that ripple through every part of running a crypto business.
Firms that have secured MiCA authorization, built robust compliance programs, and met regulatory requirements can find themselves locked out of basic banking services. Essential fiat on-ramps and off-ramps remain inaccessible, slowing payments, limiting growth, and complicating cash flow management.
Individual cases illustrate the problem vividly as well. Accounts are closed because a business receives a payment from a regulated exchange. Others are dropped with vague references to “commercial decisions,” offering no substantive justification. Founders frequently struggle to separate personal and business finances, as both are considered too risky to serve.
The irony is striking. By refusing service to compliant businesses, traditional banks aren’t mitigating risk; they’re amplifying it. Forced to operate through less regulated channels, these legitimate firms face higher operational and compliance risks, slower transactions, and reduced investor confidence. Over time, this slows innovation, and raises the cost of doing business for firms that are legally and technically sound.
Debanking Beyond Europe: U.S. Crypto Firms Face Their Own Challenges
Limited access to banking services isn’t exclusive to Europe. Leading firms in the U.S. crypto industry have faced numerous challenges regarding the banking blockade. Alex Konanykhin, CEO of Unicoin, described repeated account closures by major banks such as Citi, JPMorgan, and Wells Fargo, noting that access was cut off without explanation. Unicoin’s experience echoes a broader sentiment among crypto executives who argue that traditional financial institutions remain wary of digital asset businesses despite recent policy shifts toward a more pro-innovation stance.
Jesse Powell, co-founder of Kraken, has also spoken out about being dropped by long-time banking partners, calling the practice “financial censorship in disguise.” Caitlin Long, founder of Custodia Bank, recounted how her institution was repeatedly denied services. Gemini founders Tyler Winklevoss and Cameron Winklevoss shared similar frustrations.
These experiences reveal a pattern many in the industry interpret as systemic risk aversion. Even in a market as large and mature as the United States, crypto-focused businesses continue to encounter obstacles in maintaining basic financial infrastructure. The issue became especially acute after the collapse of crypto-friendly banks such as Silvergate, Signature, and Moonstone; institutions that once served as key bridges between fiat and digital assets. Their exit left a gap few traditional players have been willing to fill.
Why Tap Exists
The crypto industry has reached an inflection point. Regulatory frameworks like MiCA are providing clarity. Institutional adoption is accelerating. The technology is proven and tested. But the fundamental infrastructure gap remains: access to business banking that actually works for digital asset businesses.
This is precisely why we built Tap for Business.
We provide business accounts with dedicated EUR and GBP IBANs specifically designed for crypto companies and businesses that interact with digital assets. This isn't a side offering or an experiment, it's our core focus.
Our approach is straightforward
We built our infrastructure for this sector
Rather than retrofitting traditional banking systems to reluctantly accommodate crypto businesses, we designed our compliance, monitoring, and operational frameworks specifically for digital asset flows. This means we can properly assess and serve businesses that others automatically reject.
We price in the actual risk, not the sector
Blanket rejection policies exist because they're cheap and simple. We take a different approach: evaluating each business based on their actual controls, compliance posture, and operational reality. It costs more, but it's the only way to serve this market properly.
We're committed to sector normalization
Every time a legitimate crypto business is forced to operate without proper banking infrastructure, it reinforces outdated stigmas. By providing professional financial services to compliant businesses, we're helping demonstrate what should be obvious: crypto companies can and should be served by the financial system.
It isn't about taking on risks that others won't. It's about properly evaluating risks that others refuse to understand.
Moving Forward
The industry is maturing. Regulatory clarity is emerging. Institutional adoption is accelerating. But you can't put your business on hold while traditional banks slowly catch up to reality.
That's not sustainable in the long run.
As a firm, you shouldn't have to beg for a bank account. You shouldn't have to downplay your crypto operations just to access basic financial services. And you certainly shouldn't have to accept that systematic exclusion with little to no explanation other than “It’s just how things are."
The crypto sector is building the future of finance. Your banking partner should believe in that future too. If you're ready to work with financial infrastructure built for your business, not in spite of it, here we are.
Talk today with one of our experts to understand how we can help your business access the banking infrastructure you need.
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Du kanske redan har testat att köpa och sälja kryptovalutor – men har du koll på airdrops? En airdrop är en marknadsföringsstrategi som används för att skapa uppmärksamhet och bygga upp ett starkare nätverk kring ett kryptoprojekt.
I den här guiden går vi igenom vad airdrops är, hur de fungerar och varför de har blivit ett populärt sätt att engagera communityn – ofta med riktiga tokenbelöningar.
Vad är en krypto-airdrop?
En krypto-airdrop innebär att ett projekt delar ut sina egna tokens gratis till användare. Målet? Att skapa hype, öka spridningen av sina tokens och locka nya användare – ofta i ett tidigt skede innan projektet listas på en börs.
I vissa fall krävs det små insatser, som att följa projektets sociala medier eller gå med i en Telegram-kanal. I andra fall får man tokenbelöningen utan att behöva göra något alls.
Airdrops blev särskilt populära under ICO-boomen 2017 och används fortfarande idag. Och även om tokenen ges bort gratis, kan dess värde öka med tiden – vilket gör airdrops potentiellt intressanta för användare.
När projekten delar ut tokens ökar också decentraliseringen, vilket ofta ses som ett positivt tecken på att projektet är community-drivet.
Hur fungerar en krypto-airdrop?
En airdrop finns ofta med i ett projekts roadmap och startar när vissa kriterier är uppfyllda. Det kan handla om att uppnå ett antal användare, genomföra en marknadskampanj eller lansera en viss funktion.
Tokens delas vanligtvis ut i små mängder till många olika plånböcker. Dessa tokens bygger ofta på blockkedjor som Ethereum eller andra smarta kontraktsplattformar.
För att kvalificera sig kan man behöva:
- Hålla ett visst antal tokens i sin plånbok
- Gå med i en community
- Utföra enkla marknadsföringsuppgifter (t.ex. gilla ett inlägg)
En lyckad airdrop leder ofta till att användare själva sprider ordet och skapar intresse kring projektet.
Airdrop vs ICO – vad är skillnaden?
Både airdrops och ICO:er handlar om nya kryptoprojekt, men det finns en tydlig skillnad:
- Airdrop: Tokens delas ut gratis som en form av marknadsföring.
- ICO (Initial Coin Offering): Tokens säljs till användare till ett fast pris – som ett sätt att samla in kapital.
Man kan säga att ICO är ett crowdfunding-verktyg, medan airdrops är ett marknadsföringsgrepp.
Vilka typer av airdrops finns?
Det finns olika typer av airdrops – här är de tre vanligaste:
🎯 Exklusiva airdrops
Riktade mot aktiva medlemmar eller early adopters. Tokens skickas endast till utvalda plånböcker.
Exempel: Uniswap skickade 400 UNI till varje användare som använt plattformen innan ett visst datum.
🪙 Bounty airdrops
Användare måste utföra uppgifter, t.ex. gilla inlägg, dela tweets eller tagga vänner. Vissa projekt ber om bevis innan distribution.
🔒 Holder airdrops
Belöningar till befintliga innehavare av projektets token. Projekten tar en "snapshot" av alla plånböcker och skickar belöningar till dem som uppfyller kriterierna.
Exempel: 2016 airdroppade Stellar 3 miljarder XLM till Bitcoin-innehavare för att locka användare till sin plattform.
Finns det risker med airdrops?
Ja – precis som allt annat i krypto finns det risker att känna till:
- Bedrägliga projekt kan skicka tokens till din plånbok – men när du försöker använda dem kan plånboken bli tömd.
- Phishing-sajter kan efterlikna riktiga projekt och be dig ansluta din plånbok – och i värsta fall stjäla dina tillgångar.
- Ingen legitim airdrop kommer någonsin kräva din seed phrase eller att du skickar pengar för att "låsa upp" en token.
En annan nackdel är att distributionen kan ge falska intryck. Tusentals tokens i tusentals plånböcker kan få ett projekt att se större ut än det egentligen är.
👉 Tips: Kontrollera alltid att projektet har verklig handelsvolym – inte bara många innehavare.
In the age of neobanking, it seems counter-intuitive to be locked into a long-term relationship with an establishment that hasn’t changed in 300 years. With outdated processes and tedious hoops to jump through, it’s high time you said goodbye to the traditional financial institution and treated your finances with the love and respect they deserve.
From an outdated bank to an even more outdated credit union, you don't need to settle for financial institutions that make the rules and take your money. It's 2022, you have options. And we know, the process to switch from your current bank is tedious, but with the technological advancements of today, that's a thing of the past.
You deserve better from your financial institution
Knowing you deserve better is the first step toward claiming back your power. It’s time to say goodbye to high, complicated fee structures and hello to transparency, minimal fees, and knowing exactly where your money goes.
As the world rapidly transitions into a more digital space, why keep the management of your finances stuck in the dark age? Fintechs are making big strides in providing the masses with new-age financial services with faster processing times and more transparent fees. Your financial livelihood deserves better.
Neobanking vs traditional banks
Let’s take a moment to define neobanking. Neo comes from the Greek word “new”, literally meaning “new bank”. These financial technology companies (fintechs) offer users access to financial services through online digital platforms, an online bank of sorts. While not all fintechs are created equal, the majority require special licensing and provide something similar to a checking account with web and mobile services.
A traditional financial institution refers to the age-old establishment that in all likelihood is the same bank that our grandparents used in their days. Innovation in the traditional bank sector has been stagnant over the last several decades, and little has changed in these money-making corporations. They also tend to have deep political, financial, and social roots in their countries of operation. Not to mention poor customer service.
- Neobanking companies are largely like a digital online baking providers, whereas traditional banks have a physical presence alongside online banking services.
- Fintechs offer standard services such as checking and savings accounts, money transfer and payment services, low to no overdraft fees and some financial education tools (budgeting tools, etc). On the other hand, traditional credit unions present a much wider selection of options like lines of credit, financial advisors, credit cards, etc.
- While all traditional banks are fully licensed and chartered, many fintechs do own different as significant licenses such as EMI licenses. In some cases, in order to insure their products, neobanks do choose to partner with a primary bank.
- Many banks focus more on developing strong, lasting relationships while neobanks typically provide more flexible accounts than just a simple bank account, which require less paperwork and can be used worldwide.
- Online banks tend to overwhelm clients with a variety of complicated fees while neobanks charge much lower fees for their services, including for most : no monthly maintenance fee.
- While banks provide you with a face to face agent, fintechs do not, however they still provide quality customer service representatives ready to help you online with anything you might need. In short both boast different yet great excellent customer service.
Fintech do provides a new-age approach with fewer fees and more transparency, but with all, if not most, of the bells and whistles that your current banking platform provides.
With growing pressure to "have it all figured out" consider that since the start of their careers, millennials have seen slower economic growth than any other generation in the United States' history. Living through two recessions wreaks havoc on not only one's career path but finance success too.
Below we've listed the 5 golden financial tips that every millennial should know when it comes to managing their personal finance. From things you can do now to planning for the future, these simple and actionable steps will assist in making your financial situation that much more of a financial success.
1. Be prepared for hard times: emergency fund edition
While none of us enjoy emergencies, they are an unfortunate and inescapable part of reality. The best way to deal with them is by being prepared, and this means putting in the work ahead of time. By having a plan in place, you can minimize the stress and damage that these situations cause.
While rule number 1 of financial health is getting yourself out of debt, rule number two is creating an emergency fund. This is considered to be six months' worth of living expenses saved in a savings account so should something go wrong - from unemployment to medical bills to car or household repairs - this doesn't take a negative toll on your personal finance.
While this is not something one can typically create overnight, consider your budget and how much you can allocate to your emergency fund each month. Then start putting the money aside, even if it takes you a year or two to get there.
Consider if something went wrong and you needed access to cash fast, would you instead use the money from your emergency fund, or take out high-interest debt in the form of a credit card or personal loan? Note that taking funds from your retirement savings was not an option, and nor should it ever be.
In your path to financial success, always have a plan to fall back on.
2. Living large is fun, but can your personal finance really afford it?
Before making big money decisions, you must ask yourself difficult questions.
Before you upgrade your car, consider whether you can really afford it. Aside from the car, there is also insurance and gas and services, can your budget afford to take these on?
Or when moving apartments, is the upgrade totally necessary, and can your budget handle it? As millennials, we love to live the high life, but just make sure that your budget isn't taking strain and that everything you buy is well within your means.
3. It's ok to say no sometimes (and avoid credit card debt)
Celebrating with friends and family is a big part of life, but you don't have to say yes to everything, especially if these celebrations are taking a toll on your personal finances.
When planned ahead of time, one can usually budget for these, but last-minute surprise events come with added pressure. Also, consider that all these functions and events add up, don't get caught off guard "living in the moment" only for your finances (and financial goals) to suffer later.
Create a budget that outlines exactly what your financial obligations are to establish what you can spend on entertainment and socializing each month. Then, and most importantly, stick to it. If a last-minute event falls outside of this budget, you're well within your means to politely decline.
Having fun with friends and family is special, but taking a financial knock will only hurt you in the long run. Prioritize your social calendar and don't live beyond your means.
4. Watch out for direct debits (except to your savings account)
Living in the digital age we find ourselves in now is designed to be stress-free and seamless. Companies are making payments effortless through automatic payments, aka direct debits, but are you entirely aware of all the payments going off your checking account each month? It's very easy to lose track of your expenses when they're all automated.
When building your budget make sure you go through old statements to make sure that no direct debits are going off your account for services that you no longer use. Ideally, do this quarterly to ensure that you're always on top of your expenses.
The most NB direct debits should be to your emergency fund, savings account, and any investments (including your retirement fund). These are not considered expenses but are deposits into your future.
5. Don't be fooled into thinking that retirement is light years away
Your retirement is closer than you think, don't get caught out. Many millennials have seen their parents and grandparents struggle with no retirement planning, break the cycle and make sure that you are prepared with a plan and a solid retirement account.
Don't wait until you're old, start preparing now and reap the rewards when you finally get there. A great way to prepare is to start putting money into long-term investments with compounded interest. These types of accounts ensure that your money works for you. Also, look to passive income options to help you build your retirement account.
Alleviate some of the grey hairs by getting your financial planning started today.
Closing thoughts on achieving financial success
While the economic cycles haven't been good to us, we are resilient and strong and will rise above it. Consider these 5 golden financial tips and build a financial strategy to ensure that you're covered for everything from an emergency to retirement. The first steps to taking the reigns of your personal finance are to write out a monthly budget, allocate funds as necessary, and then stick to your spending frameworks.
If in doubt, contact a financial advisor who can assist with furthering your financial education and provide more in-depth money tips.
It's no secret that trading any financial market is hard work. Traders need to keep calm, level-headed, and observant at all times while staying on top of the market's ever-changing movements.
While making mistakes is part of the game, we've outlined 5 of the biggest common mistakes you can avoid while you navigate the often turbulent waters of any trading system and technical analysis.
What is technical analysis?
Technical analysis (TA) is one of the most popular methods for analyzing financial markets. At its core, it uses previous price action and volume data to predict future market behavior by identifying trends and favorable trading opportunities.
It can be applied to the chart patterns of any kind of market, including stocks, forex, commodities, and cryptocurrencies. While the basics are not too difficult to understand it takes a lot of practice to become an expert technical analyst.
This form of analysis typically looks at historical price action, while fundamental analysis (FA) looks at multiple factors affecting the price of an asset.
5 common mistakes made when it comes to using technical analysis
- Know when to cut your losses
No matter how big or small, always prioritize protecting your investment. In the world of trading and investing, this is non-negotiable if you want to see any returns. A great way to approach trading is to start out with the following mindset: you're not here to win, you're here not to lose.
Start with small positions, set up a stop-loss, and know when to cut your losses.
2. Don't ignore extreme market conditions
While the markets are typically governed by supply and demand, there are cases where extreme conditions like black swan events can throw your carefully curated technical analysis to the curb. Sometimes emotion and mass psychology can cause periods of extreme market conditions, and you will need to adjust your trading strategy accordingly.
If you make decisions based solely on readings from technical tools, you run the risk of losing money, especially during black swan events when it can be tough to understand what's happening. Keep in mind that market conditions can change rapidly and without warning, so it's always important to consider other factors before making any decisions and risking real funds.
3. Avoid revenge trading
Revenge trading is a term used to describe when a trader tries to immediately recover a significant loss through making alternative trades. Infringing the golden rule of not making trades based off emotions, revenge trading is a no-no.
Harness your inner zen and attempt to stay calm through both big and small mishaps. Sticking to your trading plan will be the best thing you can do, and make adjustments as need be based off of logical thinking and an analytical approach.
Immediate trading after a severe loss often leads to more losses. Therefore, some traders take a break from trading altogether for a while after they lose big. By taking this breather, they can come back with fresh mindsets and restart their trading journey.
4. Remind yourself (constantly) that TA is a game of probabilities
Technical analysis is all about probabilities and not absolutes. This means that no matter what technical approach you’re using, there’s never a 100% guarantee that the market will behave as you expect. Even if your analysis suggests that there’s a very high probability of the market moving up or down, it's still not set in stone.
As you're getting your trading strategies together, there's one aspect you always need to keep in mind: don't think the market will go how your analysis predicts. This is a mistake even experienced traders make, and it leads to bad decisions like betting too much money on one outcome instead of spreading it out. That puts you at risk of losing a lot financially if things don't go your way.
5. Don't blindly follow anyone's trading strategies
A great way to learn how to trade the financial markets is by observing experienced technical analysts and traders. However, in order to master your own skills you will need to establish what your own strengths are and how to leverage them.
Observing other traders doesn't present a fool-proof trading strategy as something that works for one trader might not work for another. With countless ways to make money off of the markets, find your own trading style that is best suited to you.
Initially, you might get lucky by making trades based off of another person's opinion. However, if you continue down this road without comprehending why they made that choice, it will only lead to detrimental consequences in the future.
Learning from others is key, but it is more important that you think for yourself and agree with the trade before moving forward. Do not let anyone else make decisions for you blindly, no matter their experience level.
In conclusion
While trading isn't easy and there is certainly no quick fix to success, the above are some helpful starting points to consider when entering the world of technical analysis.
Remember that it takes practice, and while approaching trading with a longer-term mindset is a great way to start, ideally, you want to build habits that allow you to be in control of your trading decisions and avoid common mistakes.
Constantly manage your risks and learn from your mistakes when you make them in order to capitalize on your strengths and improve. This advice serves both professional traders and newbies.
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One of the largest and oldest dapps in the DeFi (decentralized finance) space, Compound Finance has built a reliable reputation among traders looking for lending and borrowing services. Compound operates using its native ERC-20 COMP tokens which provide community governance as well as other services.
What is the Compound protocol (COMP)?
Built on the Ethereum blockchain, the Compound protocol provides liquid money markets offering services such as lending and borrowing. Supporting a number of crypto assets, the Compound protocol allows users to deposit crypto into lending pools providing capital for borrowers on the network and allowing them to earn interest in return.
After depositing funds into the lending pool, lenders are issued "cTokens" (cETH, cDAI, cBAT) which represent the deposit made. These tokens can then be traded or transferred within the platform, or redeemed for the original cryptocurrency deposited. This process is conducted by smart contracts and operates entirely automatically with interest rates algorithmically assigned based on the activity in its liquidity pools.
The Compound protocol also uses the ERC-20 native COMP token which is distributed to traders that utilize the Compound market, i.e. borrowing, withdrawing or repaying the asset. COMP tokens are distributed each time an Ethereum block is mined proportional to the interest collected from each asset. The COMP cryptocurrency grants COMP token holders governance and voting rights.
Following notable investments from the likes of consulting firm Bain Capital Ventures, Andreessen Horowitz, and Polychain, the platform has grown and established a strong reputation within the decentralized finance space and the greater crypto world.
The history of Compound and who created it
Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes, who both previously held high-profile jobs at PostMates, an online food delivery service. Leshner holds the CEO position while Hayes remains the CTO at Compound Labs, Inc, the software development firm behind the Compound protocol. Compound Labs is an open-source software development firm creating cutting-edge tools, products, and services for the innovative DeFi ecosystem.
In 2018, the platform raised $8.2 million from notable venture capital firms Bain Capital Ventures and Andreessen Horowitz. A year later, Compound raised an additional $25 million from many of the same investors along with new ones including Paradigm Capital.
How does Compound work?
The Compound protocol leverages the power of Ethereum smart contracts and cryptocurrency incentives to benefit lenders and borrowers. Lend and borrow services make up the two main use cases for the platform, as outlined below.
Interest rates on Compound are dynamically managed based on the supply and demand of particular crypto assets within the coin pools. The higher the liquidity, the lower the interest rate. Prices are determined by using the Open Price Feed based on Chainlink's oracles which collect the data from numerous exchanges.
In order to use the Compound DeFi protocol to engage in lending or borrowing services, you will need to connect one of the supported crypto wallets. Currently, the app supports MetaMask, Ledger, WalletConnect, and Tally Ho. The interface has been designed to be user-friendly and easy to navigate, perfect for traders new to the space as well as seasoned DeFi participants.
Lending/supplying
The process of lending on the Compound platform is called supplying. Lenders are able to earn interest on their cryptocurrency by depositing cryptocurrencies into the Compound platform. Borrowers are also required to deposit digital assets into the protocol, which can earn interest but cannot be withdrawn for the duration of the borrowing period.
The platform currently supports roughly 20 crypto assets, from Basic Attention Token (BAT) to Wrapped Bitcoin (WBTC), with Ethereum (ETH) and a number of stablecoins (DAI, USDC, and USDT) being the most actively used.
Once users lend assets to the platform, they are issued with ERC-20-based cTokens corresponding to the cryptocurrency deposited (i.e. cETH, cDAI, etc.). These tokens confirm the liquidity providers' deposits and offer a number of other incentives.
Borrowing
After depositing a particular cryptocurrency into the decentralized finance protocol, users are assigned a "borrowing capacity". This is a limit set in USD based on the rate of the crypto asset which is determined by the Open Price Feed. When depositing multiple cryptocurrencies, the borrowing capacity will factor this in.
Users can also borrow cryptocurrencies supported by the protocol based on a coin's collateral ratio. For instance, if DAI has a collateral ratio of 70%, users can borrow DAI up to 70% of the total amount deposited. Typically, collateral ratios are between 60% and 85%.
Similar to the lending process, when borrowing cryptocurrency borrowers are issued cTokens. So when borrowing DAI for instance, borrowers will be issued cDAI tokens, with the interest payable based on these tokens as well.
Withdrawing
After paying back the borrowed debt, users can redeem their deposited funds. Without having to deal with other traders, the protocol seamlessly utilizes a dynamically maintained set of liquidity pools. The platform also does not charge any withdrawal penalties or hold users to minimum investment times.
When users redeem their funds, the cTokens issued are added to the accumulated interest and converted back to the originally deposited cryptocurrency. These funds can then be withdrawn into the connected wallet.
Account Health
The Compound platform uses a system called "account health" to establish whether accounts are in risk of liquidation. This system measures the sum of the deposited funds against the total amount borrowed. If a user's account health falls dangerously low, the account could be liquidated, and some of the collateral forfeited.
This process is managed in a decentralized way where platform users act as liquidators and monitor for risky accounts. Should they liquidate an account they earn a portion of the liquidated funds.
What is the COMP token?
The COMP token is the Compound platform's native token which mainly serves as a governance token, with a built-in incentive for users holding the token. Holders of COMP tokens are able to vote on all important decisions pertaining to the protocol, including interest rates. Much like the cTokens, COMP tokens are based on Ethereum’s ERC-20 token standard.
Compound tokens have a total supply of 10,000,000 tokens, of which over 70% of Compound coins are in circulation (at the time of writing).
How can I buy COMP tokens?
With Tap's mobile app, users can easily acquire COMP tokens and store them in the integrated wallet with confidence, either to hold long-term, sell, trade or use on other DeFi platforms. Not only does Tap provide an effortless way of trading digital assets, but also a safe space to keep your investments secure over long periods of time.
In order to access the mobile app users will need to download the app and create an account. After a quick verification process, users have access to a wide range of vetted cryptocurrencies as well as fiat wallets where funds can be safely stored or used in the real world. Whether you're looking to buy Compound or sell Compound coins, Tap provides a seamless solution to your crypto needs.
We are delighted to announce the listing and support of Compound (COMP) on Tap!
COMP is now available for trading on the Tap mobile app. You can now Buy, Sell, Trade or hold COMP for any of the other asset supported on the platform without any pair boundaries. Tap is pair agnostic, meaning you can trade any asset for any other asset without having to worries if a "trading pair" is available.
We believe supporting COMP will provide value to our users. We are looking forward to continue supporting new crypto projects with the aim of providing access to financial power and freedom for all.
Built on the Ethereum blockchain, the Compound protocol provides liquid money markets offering services such as lending and borrowing. Supporting a number of crypto assets, the Compound protocol allows users to deposit crypto into lending pools providing capital for borrowers on the network and allowing them to earn interest in return.
The COMP token is the Compound platform's native token which mainly serves as a governance token, with a built-in incentive for users holding the token. Holders of COMP tokens are able to vote on all important decisions pertaining to the protocol, including interest rates. Much like the cTokens, COMP tokens are based on Ethereum’s ERC-20 token standard.
Get to know more about Compound (COMP) in our dedicated article here.