As time passes by, any cryptocurrency project begins to show the market if it is able to live up to any disruptive potential or if continued stumbles and a misguided roadmap prove to be too much of a barrier in bringing any innovation to light. In worse cases, projects are abandoned when the industry experiences a difficult period or a downtrend.
In other cases, a token’s utility takes years to properly develop, so the time is instead used entirely for the value and perspective it provides. The end result in these situations is a coin like Covesting (COV), which started its life toward the conclusion of the last bull market, but due to the team behind the project staying consistent with their plan, the project today is active and continuing to evolve.
The example is notable in an industry where new projects are popping up by the day. Here is a deeper look at the complete evolution of the native COV utility token from its early beginnings to where it is today, along with a preview of what else is on the way for the cryptocurrency.
Past: COV Token Launch And Bringing Copy Trading To Crypto
The COV token was launched in late 2017 as an initial coin offering, allowing cryptocurrency enthusiasts to get early access to a utility token that would be utilized natively within a copy trading module to be released at a later date. The plan for the copy trading module was ambitious and would connect followers with strategy managers and include a global leaderboard system.
The token sale sold out almost immediately, highlighting the demand for cryptocurrencies with innovation at the time. Within months, Bitcoin and Ethereum suffered a dramatic collapse and took the wings out from beneath the industry and put the brakes on innovative projects across the space. Interest in all projects waned for a period.
Covesting, a Europe-based fintech software developer, sought and received among the first DLT licenses at the time. The license restricted specific business models that were crucial to the copy trading experience. As an alternative solution, the company decided to develop its copy trading software as a third-party module available for partners to license.
The business model proved to be the right decision, as it allowed more development time and to pair the copy trading module with the right business partner to make its debut. In early 2020, the copy trading module left its beta phase and was introduced to the world for the first time. The initial setup first arrived without any COV token integration, but the Covesting team later introduced support for the COV token at a later date which is live today.
Present: Covesting Copy Trading And COV Token Utilities
Covesting is a peer-to-peer copy trading community that connects followers with strategy managers through a software module within the PrimeXBT dashboard. Covesting copy trading is currently available exclusively at the award-winning margin trading platform known for long and short positions on more than 50 different CFDs; however, B2B partnerships could always expand in the fast-paced crypto industry at a moment’s notice.
With a Covesting account, anyone can become a strategy manager if they feel they have the skills. The software itself and the transparent risk and success metrics that the global leaderboards provide keeps these strategy managers working hard and honest. It also allows followers to select a strategy manager that best suits any personal goals or risk appetite.
Followers can follow one or many strategies at any given time and can manage these positions similarly to margin trading positions with stop loss or take profit orders. The module will allow any trades the strategy manager makes to be automatically copied by their followers at large. If successful, followers will get a share of the profits. The strategy manager also receives a cut to keep them incentivized and actively trading.
Strategy managers will, in turn, be able to grow capital much faster and tap into new revenue streams. At the same time, followers who might not survive in markets otherwise can now earn profits from those with more experience. They then must compete with other strategy managers to rise the ranks of the fully transparent global leaderboards or obtain all five stars – each with unique risk, success, turnover, or margin parameters.
The Covesting (COV) token is the native cryptocurrency to the copy trading module, launched initially as an ERC-20 token. Covesting developers have since released a bridge to Binance Smart Chain for greater cross-chain flexibility, and so users can take advantage of the various protocols and decentralized applications unique to each blockchain.
The native utility token was launched with a maximum total supply of 20,000,000 COV, making it more scarce than BTC. Deflationary tokenimics diminish the token supply further through systematic token burns initiated by Covesting developers. More than 660,000 COV have been burned via these methods.
Users can keep track of the supply and other various metrics related to the COV token in the My COV section of Covesting on PrimeXBT. In addition, this section of the PrimeXBT dashboard is where COV token holders can begin to access the utilities the token provides when combined with the Covesting copy trading module.
There is also a section dedicated to COV token staking in the same My COV part of the PrimeXBT dashboard. COV staking is how users unlock any account-level utilities within the copy trading module. The larger the number of COV tokens locked up, the greater the amount of utilities are enabled for the token holder.
By staking COV tokens, users can turn a standard account into a Premium, Advanced, or Elite account on PrimeXBT. All three levels each eliminate the 1% new following fee, while the rest of the features differ level by level.
For example, at the Premium level, followers increase their profit share by 2%. Strategy managers get a trading fee discount of 10%, and there is a 2x increase in follower limits. At the Advanced level, the profit share for followers increases to 3%, and strategy managers get a discount of 20% instead. Their follower limits also triple.
Finally, the Elite level offers the most value and utility with a 5% profit share increase to followers, a 30% trading fee discount, and no follower limit whatsoever. Without any cap on followers, the potential for revenue is as significant as the scope of one’s reach.
Accessing COV tokens for purchase can be done via KuCoin, Uniswap, or directly through the PrimeXBT dashboard via the Exchange tool. This is a relatively new feature that lets users swap one type of cryptocurrency for another, including any of the base account margin currencies available on PrimeXBT. Although the list of currencies includes USDT and USDC, COV is only available to exchange through the COV/BTC and COV/ETH trading pairs.
Future: What Is In Store From Covesting And For COV
The Covesting development team always seems to have something cooking, whether it is updates to the copy trading module, enhanced tokenomics for COV, or something entirely new. Earlier in the year, they revealed an upcoming tool that will increase the utility of the COV token further. This tool is referred to as Covesting Yield Accounts.
The Covesting Yield Account system is located within the Covesting section of the PrimeXBT dashboard alongside the copy trading module, COV staking, supply stats, and more. The new tool offers cryptocurrency holders as much as 35% APY on their idle crypto tokens held on PrimeXBT.
Everyone at this point has heard of DeFi. Among the most popular ways, this new sector of cryptocurrencies makes token holders money is through variable yields paid out as crypto rewards. Different DeFi protocols have unique ways of achieving this, but the most popular example recently is perhaps how it works with automated market-making platforms like Uniswap and PancakeSwap.
On centralized cryptocurrency exchanges, the exchange itself supplies liquidity for users to tap into. However, users provide liquidity by staking tokens in a smart contract with decentralized exchanges or automated market maker platforms. By locking up tokens, there is enough liquidity within trading pairs to facilitate market activity.
An exchange would typically earn revenue based on this business model made in fees. Since there is no company involved, the DeFi protocol pays rewards to users offering liquidity as an incentive to do so. When demand is high, the interest rates paid are also the highest. That is why interest rates are variable in DeFi in most cases.
The concept behind how this all works is clear, but connecting wallets to the blockchain and decentralized applications to move and stake coins can be confusing and downright dangerous for those that don’t know how.
However, Covesting will debut the Covesting Yield Account system in Q3 2021, which will allow a user-friendly and straightforward connection to top DeFi protocols such as Uniswap or PancakeSwap, but without the technical expertise that is usually required. The Covesting Yield Account system dashboard does the connecting for you right within the PrimeXBT dashboard.
By utilizing the tool, users can much more easily tap into the industry’s best variable APY rates that DeFi has to offer. This is also where the most recently announced COV token utility was revealed to have an impact. According to the company blog, COV token staking can unlock an additional utility of as much as a 2x APY boost within Covesting Yield Accounts. Users can also sign up now for a 1% introductory boost for joining an active waitlist within the Covesting Yield Account section in the PrimeXBT dashboard.
The Next Evolution For Covesting And COV
Where the COV token goes next could ultimately be determined by where the cryptocurrency industry innovates next. When the COV token was first conceptualized, DeFi was barely a thought, yet today the utility token has evolved to include even the most recent crypto industry trends.
In the future, regardless of which direction things head and which features are introduced to the COV token for additional utilities, given the track record of creating an interesting value proposition for token holders, whatever is to come will be a welcome addition to the world of finance.