Coinvest Token Swap Strategy and Details

Details regarding our upcoming fork and token swap strategy for COIN V2

In an effort to more closely align with market standards, to ensure the strongest viability of our token in the marketplace, and to protect the assets of investors, Coinvest has elected to hardfork its current token COIN to create an upgraded COIN V2 token. During this fork, Coinvest will upgrade and align with the ERC865 standard while removing the ERC223 standard, thus creating a token that is a standard ERC20 asset. In order to most effectively execute this process we have developed an overarching strategy that encompasses the mechanics of the hardfork, the token swap process (from the end user perspective) and the communications required to initiate this process.

Hardfork

Goals

  • Create a token that more closely aligns with the cryptocurrency market and ecosystem that provides the highest level of utility and value as an investment vehicle for the Coinvest trading platforms and DAPPS.
  • Protect the assets of investors who have purchased COIN as a value appreciating investment trading vehicle needed to participate in the Coinvest trading platform network.
  • Provide advancement in the technology associated with our COIN token and smart contracts which allows greater simplicity in the execution of contract methods; which translate into greater simplicity and usability for end users.

Requirements

To facilitate the forking of the COIN token, Coinvest has developed new smart contracts that improves our protocol architecture building upon the original requirements form the previous token. The new requirements include the ability to interact with the COIN protocol without the need to create an account (no login, user data storage), enables users to pay gas fees with COIN instead of ETH, and supports the compatibility for legacy exchanges using only the ERC20 standard.

Technical Details

The COIN V2 token utilizes the standard ERC20 specification along with the addition of the ERC865 functionality. The following is a list of the upgrades specific to the COIN V2 token that is being implemented in this fork:

  1. Add ERC865 functionality to the token, which allows one address to transfer for another as long as the own has cryptographically signed the transfer transaction.
  2. Use traditional ERC20 specification with the approveAndCall method for simpler code paths to initiate and complete investment transactions on the Ethereum blockchain.
  3. Remove broker functionality in the investment contract to allow any frontend to use the delegation methods for transfers and sells.
  4. Add receiveApproval contract function to our investment contract which is called by the approveAndCall method after the receiving contract has been approved to withdraw.

Key Activities

  • Completion of the new COIN V2 smart contracts (3/5–3/30)
  • COIN V1 token hard fork and deployment of new smart contracts to COIN V2 (4/2–4/13)
  • COIN V2 token professional security audit (4/16–4/27): Completed by Authio
  • COIN V2 security audit fixes and revisions (4/30–5/4)
  • COIN V2 community security audit and revisions (5/7–5/11)
  • COIN V2 token swap and distribution (Week of 5/14)

Token Swap

After some consideration of the various methods to deploy the new COIN V2 (hereafter referred to as simply COIN), the Coinvest team has decided to use a token swapping process to distribute COIN to investors and token holders. During our assessment of the benefits of each method (with Airdrop being the alternative) it was determined that the token swap method more closely aligned with our goals of providing a safe, secure and seamless method for transferring the new COIN to investors and token holders.

The Coinvest token swap smart contract will be open forever with no deadline. However, it is recommended to swap COIN at your earliest convenience in order to leverage COIN on the Coinvest platform and future exchanges

Advantages and Disadvantages

Our team has assessed the benefits and potential gotchas for the token swap process versus an airdrop:

Advantages:

  • Managed by a smart contract which prevents manipulation
  • Prevent scam attempts by selling the old COIN
  • Less room for error in execution
  • Less complex and quicker to implement
  • Less confusion as there will not be two versions of COIN on the market

Disadvantages:

  • Will require manual interaction from users to exchange
  • User will be required to have Ether to cover gas costs for an exchange (est. 86,680 in GWEI or approximately $.10 — .20 cents USD in gas per transaction)

Process

The token swap process is a relatively simple process from the end-user perspective. The following diagram represents the process visually.

  1. The token holder will need to log into his/her wallet that holds the COIN V1 tokens.
  2. The token holder will initiate a transfer (send) of all COIN V1 tokens to the specified token swap address.
  3. Upon receipt of the COIN V1 tokens, the token swap contract will disburse the COIN V2 tokens back to the wallet address that initiated the transfer.

Assumptions:

  1. It is assumed that the sender has ETH in his / her account to cover the gas fee of the transfer of COIN V1 to the smart contract.

Conversion Rate

The mechanics and execution of the token swap smart contract are simple. Investors will receive new COIN in a 1:1 swap upon sending old COIN to the smart contract.

1 OLD V1 COIN = 1 NEW V2 COIN

Estimated gas costs are expected to be $.10 — $.20 per transaction / swap. We understand that token swaps are not convenient. Additionally, when they require ETH in order to send tokens to our smart contract address. To cover these gas costs, we will cover the future expense of two trade fees on our platform. More specifically, each wallet addresses from our token swap process will be will credited two free trades on the Coinvest platform (upon public launch). The credit equates to a value of approximately $10.00. Meanwhile, also encourages the future use and adoption of the Coinvest platform.

Next Steps

Please look forward to additional communications via our official website at https://coinve.st for token swap instructions.

DO NOT SEND ANY OF YOUR COINS DIRECT TO ANYONE SOLICITIING A SWAP OR IMPOSING AS A COINVEST REPRESENTATIVE. OFFICIAL DETAILS AND THE TOKEN SWAP SMART CONTRACT ADDRESS WILL BE PROVIDED ON OUR WEBSITE.

Frequently Asked Questions

  • What does this token swap mean with the current COIN I hold?
    This means that your current COIN has value and will be required in order to swap to the new COIN that is used and accepted in the open market.
  • Can I transfer old COIN to another wallet in the meantime?
    Yes, old COIN is unlocked and transferrable.
  • Can I trade old COIN on centralized / decentralized exchanges?
    No. Exchanges will only be provided our new token contract address using the ERC20 standard we have implemented in the fork. Old COIN is based upon the ERC223 standard which is not compatible with some exchanges.
  • Can I purchase COIN from others privately until it reaches exchanges?
    Technically, yes if you would like as old COIN has value and will be required for swapping to the new version of COIN. However, please note that purchasing or trading from unauthorized sources can result in scams, lost funds, and more. We will not be able to assist in help, provide support, or troubleshooting any issues related to any private deals.
  • What is the deadline to swap old COIN for new COIN?
    There is no deadline to swap COIN. The Coinvest token swap smart contract will be open forever with no deadline. However, it is recommended to swap COIN at your earliest convenience in order to leverage COIN on the Coinvest platform and future exchanges

For more information regarding COIN V2, please see the following resources:

COIN V2 Announcement and Collateral:

As a Coinvest investor and a member of the Coinvest family, we appreciate your support and hope that the aforementioned process can be completed with minimal to no inconvenience for you. If you have any questions or need assistance with the the token swap process, please contact us directly and we will do our best to assist you. For your convenience we can be contacted via email at support@coinve.st or visit our website at https://coinve.st and use the chat feature located at the bottom right hand side of the page to receive immediate assistance during our regular support hours.

For more information, please visit our website. Should you have any questions, please reach out to us on our Telegram or Discord.