Is the COV Token Undervalued?

The COV token is the native cryptocurrency of the Covesting ecosystem, with Covesting.io launching in 2017 and becoming the first form of crypto copy trading ever to be created.

Subsequently, covesting has been one of the fastest growing and most hype trends of the last two years and this is in no small way as a result of the partnership between Covesting.io and PrimeXBT in order to bring covesting to the latter platform.

While the COV token was launched in 2017 at more than $3 dollars each, it, like the rest of the cryptocurrency market, saw a tremendous drop in value throughout 2018 and 2019, and at the point that the COV token is at now with recent exciting developments on PrimeXBT, we’re asking the question of whether the COV token is undervalued in 2021.

What is Covesting

Covesting 101

Covesting is a new form of trading that allows users to come together in order to share their resources amongst a group, with the best traders allowing the other members of the group to be able to copy them, and with them receiving a success fee on profits generated in return for their service.

Covesting has grown rapidly over the past few years since its creation, and is uniquely available on PrimeXBT’s Covesting module since the launch of covesting on that platform in early 2020 following a partnership between the project behind covesting, Covesting.io, and PrimeXBT.

Covesting provides a structure that is simple yet powerful and allows for the seamless collection of different users that may be geographically dispersed and have no other way to form similar sorts of partnerships, while with the use of the Covesting module this process is simple and often leads to beneficial situations being created.

How Does Covesting Work?

Within the Covesting system, experienced traders known as “strategy managers” will create peer-to-peer investment funds which are directly tied to a specific strategy, and with the performance of that investment fund being displayed publicly to potential investors to be able to assess and compare to other strategies.

Investors, also known as “followers” on the platform, will then deposit the capital into the Covesting module and after selecting which strategies they would like to follow will be able to quickly and easily share in the same profitability that the manager generates by copying the same trades that they make.

In return for allowing their followers to be able to copy their strategies, managers generate a 20% success fee on all of the profits that they generate, which is often a significant boost to the income they make on their trading activities, while also significantly reducing the risk that followers experience as well.

What are the Benefits of Covesting?

There are a wide and diverse range of benefits of using covesting and this is the reason for the rapid growth of this new way of trading in the cryptocurrency space over the past few years, as well as the reason that a many different types of traders and invest have been able to find value in using covesting.

Primarily, followers are able to dramatically reduce risk by putting their capital in the hands of some of the best traders in the cryptocurrency market, with the capital that they follow with then copying the same trades as the strategy manager and sharing in the same levels of ROI.

Strategy managers are able to boost their revenue by allowing followers to copy their trades and taking a 20% success fee on all profits, and as well as this, strategy managers are able to build a following on the Covesting module which can often transition over into crypto social media where they can build a strong reputation based on the performance of their Covesting strategies.

Major Covesting Events

The Launch of Covesting

Covesting was first introduced to the world in 2017 with the launch of Covesting.io, a platform which pioneered the introduction of copy trading into the crypto market and that was one of the most successful crypto startups of 2017 taking more than $18 million in funding that year.

Covesting launched in one of the most innovative periods of the entire history of cryptocurrency, and it was in this innovative period that Covesting.io still stood out as being one of the most cutting-edge concepts to be proposed, while the legitimacy of the team behind Covesting also stood out amongst the huge numbers of vaporware ICO’s that were created.

Since 2017 until today, covesting has grown substantially in its user base and influence within the cryptocurrency market, having finalized a number of pivotal partnerships throughout this period of time, and even being a long-standing member of the worlds most prestigious cryptocurrency organization, the Crypto Valley Association.

The PrimeXBT Covesting Module Beta

In late 2019 it was announced that Covesting.io had partnered with the world’s largest multi-asset margin trading platform, PrimeXBT, and would be developing a module based upon the technology behind covesting in order to allow the users at PrimeXBT to have direct access to this new form of copy trading.

In April 2020, the Covesting module beta phase commenced and ran for the following 4 months until August 2020 when it was announced as a resounding success and the full version of PrimeXBT’s Covesting module was simultaneously launched.

Throughout the 4-month period, more than $1 million of equity was provided by followers into different strategies on the Covesting module beta, while the top performing strategy managers throughout that period were able to generate up to 1800% ROI for their followers.

Release of COV Token Utilities and Integration

One of the most long-awaited and anticipated developments in the world of Covesting has been the introduction of a range of COV token utilities that would be integrated into PrimeXBT’s Covesting module and that would dramatically increase the utility and value that holding the COV token would impart on users.

Covesting is already one of the most advantageous ways of engaging with the cryptocurrency market and in itself can lead to significant advantages for traders and investors, however now with the integration of a range of new COV token utilities, the value that is gained from covesting can be boosted substantially higher.

The news of the release of the COV token utilities was met with widespread enthusiasm throughout the market as COV token holders and covesting users alike can now have substantial benefits from the use of COV.

Is the COV Token Undervalued?

The Value of Using Covesting

Now that the COV token has been integrated into the Covesting module, its value and the value of covesting itself is inextricably linked and the value of the COV token is now heavily influenced by the kinds of advantages and benefits that users are able to gain from covesting.

Never before have cryptocurrency users been able to access copy trading, and now with covesting, collaborations are able to be formed which typically leads to dramatically improved outcomes within the market and allows all parties to work together in order to reduce risk and increase the success of their trading activities together.

As we’ve already seen, the upward trajectory of the growth of covesting’s popularity over the past few years has been exponential, and it is predicted that this trend will continue into the future and that covesting will become even more of a core part of the cryptocurrency market.

The All-Time High of the COV Token

The all-time high price for the COV token was $3.29 on 24 January 2018, and along with the rest of the cryptocurrency market the value of the COV token gradually reduced throughout 2018 and 2019’s bear market.

After creating a new all-time low, the COV token reverted and began to climb in March 2020 and since then has increased in value by more than 1000% throughout 2020 and 2021, showing the huge interest in the COV token and in its potential for the future.

The COV token is still currently highly undervalued however and has a significant amount of growth left in it before getting back to the all-time high of $3.29, with this being possible in the upcoming bull run this year.

Recent COV Token Utilities

One of the biggest indicators that the COV token is undervalued currently is that we’ve recently seen the introduction of the new COV token utilities which collectively work to reduce supply of the COV token, whilst also increasing its demand.

The 4 new COV token utilities are the ability for strategy managers to cut their trading fees by up to 75% by buying and staking between $250 to $750 of COV, the ability for followers to remove the need to pay the new 1% entry fee, the ability for followers to retain more of the success fees that are generated upon successful trades, and the periodic burning of fees by the covesting team as well.

As well as the 4 existing COV talking utilities that have been announced, there are also many other utilities that are planned to be introduced in the coming months and this will only have the impact of further increasing the value of the COV token as well.

In Conclusion

Taking everything into account relating to the COV token and covesting, it is fair to say that the COV token is significantly undervalued currently and is far below what the market rate should be for a token that provides the level of value that it does.

This could largely be because the market is still waiting for the bull run to form and begin, however we would expect that upon the clear formation of a bull run that the COV token will take-off and will be one of the best performers of 2021 as a result of the increased demand and reduced supply that we’ve seen recently.

To learn more about the COV token, about the Covesting module, and about how to get involved with covesting, check out this link.