Question 1

What is Compound's insider selling pressure score?

Accepted Answer

Compound's insider selling pressure score is a 0-10 composite derived from persistently negative funding rates on COMP perpetual futures across 13+ exchanges. High scores indicate structured selling — typically hedge funds, market makers, or team members shorting to hedge locked-token positions — that is invisible in spot order books or on-chain data.

Question 2

How is the COMP score calculated?

Accepted Answer

The score combines Funding Magnitude (how deeply negative the funding rate is over a 72-hour window across all monitored exchanges) and Funding Persistence (how many consecutive days funding has stayed negative). Both are weighted to produce a 0-10 composite. A 14-day warm-up eliminates cold-start bias.

Question 3

Is this a reliable short signal for Compound?

Accepted Answer

Backtested walk-forward over 12 months across 394 coins, strong signals (score ≥ 7) hit 83.9% at 30 days with median −13.2% — a 7.7 percentage-point edge over a random coin from the same universe on the same entry dates. Past backtest performance does not guarantee future results; combine with liquidity, risk management, and other signals.

Compound

Signal Breakdown

Key Metrics

What This Means