Covesting Full Launch Is Here: Key Beta Takeaways And COV Token Utility

COVESTING
COVESTING
Aug 17 · 5 min read
Image for post
Image for post

Dear Community,

We are delighted to reveal that the Covesting copy-trading platform on PrimeXBT is now live to the public.

We would also like to extend a sincere thank you to the trading community members who participated in the beta and helped shape the product to become what it ultimately is today. Due to the many contributions from beta testers, we were able to identify bugs and place our attention on critical inefficiencies.

These important incident reports and feature requests filled out the development team’s sprints for months at a time, together working to ensure that the Covesting platform became the leading copy-trading service across the cryptocurrency industry.

The beta went through several iterations, and each round of feedback supplied us with invaluable user data that helped shape the final product, now available to all registered users of PrimeXBT.

Important Beta Takeaways

Many platform users were able to achieve truly incredible results during the beta phase, executing profitable trading strategies and consistently demonstrating success through the public rankings system. Those who generated consistent profits attracted more followers, and earned a larger sum of success fees for themselves.

We have received an outpouring of support from the Covesting community. Many top respected professional traders signed up for the Covesting beta early through their positive word of mouth and compelling message.

New traders can tap into these top traders’ expertise and follow their trades, rather than learning the ropes themselves. Relying on other, more experienced traders’ strategies and skills may help reduce risks; however, allocating capital to even professionals carries a significant risk of capital loss.

For example, recent market volatility and improper risk management caused some strategies to lead followers to losses after getting stopped out. Therefore, it is important to always keep in mind any and all risks associated with the platform and take the time to read and understand the included risk disclaimer.

Here it is as an important reminder:

Your capital is at risk. Statistical information and historical performance are not a guarantee of future performance. Never invest more than you can afford to lose.

In order to minimize risks associated with margin trading, we have also reduced the maximum leverage available to strategy managers to just 1:50 across all asset classes and trading instruments.

Adjustments and other feature requests continued to pile in during the beta testing phase. Also, to continue to hone the Covesting platform, we have created a roadmap of the development of additional features we are preparing based on user feedback and demand.

Here is the Covesting roadmap for the nearest future:

Stop loss for followers: To create stop loss settings for individual Strategy followings to better manage max drawdown.

Additional risk metrics: To add new risk metrics and statistics on portfolio diversification for added transparency for followers.

Updated ratings logic: To further develop the weighting parameters that factor various metrics into the overall rating system.

Strategy description editing: To enable the editing of strategy descriptions after they have been created. Currently, this is not possible.

We will also continue to further monitor the module for trading activity and performance as it develops, and seek to add even more tools and features to improve the overall experience, bolster performance, and reduce risk in the best interests of the Covesting community of traders.

COV Token Utility Revealed

As has been made clear in the past, once the official launch of phase 1 was successfully completed, we will begin implementing COV token functionality into the Covesting module.

Behind the scenes, we have been discussing which mechanics would bring the most utility to the COV token and enable the best possible user experience for the platform.

All incentive schemes were designed to provide as much utility to the token as possible and decrease the token’s circulating supply. Any utility added must be highly scalable and easily transferable to other third-party trading platforms where the Covesting platform is made available under the white label licensing agreement.

Therefore, we have decided to split token integration into two distinct parts.

1) Core COV Token Utilities: These will be mandatory utilities and will be included within every single Covesting integration.

2) Secondary COV Token Utilities: These will be per-case, platform-specific features largely dependent on Covesting’s B2B partner and their business model to highlight key benefits.

Core COV token utilities include:

Trading Fee Reduction: Several options for trading fee reduction will be added for strategy managers to benefit from. Fee reduction tiers will range from 10% to 100%, however, the exact amount of COV tokens required for each level of discount will be determined at a later date.

Improving Success Fee %: Followers will be able to increase the % of success fees in their favour by staking COV tokens and taking advantage of its utility. For example, Covesting currently takes a % of success fees on all closed profitable trades, splitting the remaining % between strategy manager and follower. Distribution between strategy manager, follower, and the platform are determined by the corresponding offer. The current offer may change at any the company’s discretion according to market conditions. By staking a yet to be determined amount of COV tokens, Covesting’s % is reduced and a larger share goes to the follower on all profits generated by the strategy manager.

Increase Following Limits: To keep token utility high, we intend to limit the maximum number of unique followers or impose capital limitations. Staking COV tokens will unlock additional followers and raise capital limits

Token Burns: Covesting aims to burn a portion of the fees generated within the Covesting module at regular intervals, ranging from once per month to quarterly. Fees will be calculated after excluding affiliate earnings, fee discounts, and other revenue impacts.

Secondary COV token utilities, as mentioned, are dependent on third-party partners, will vary by partner, and are yet to be determined. Not only does this mean there will be even more utility and incentives available down the line, but it allows us to create exciting new ideas based on our partner’s unique business model and competitive proposition. We will share more information on these secondary features as they develop, but core features are our primary focus.

We are thankful for the continued support of the Covesting community. Stay tuned for more updates regarding the full Covesting public launch and COV token utility integration.

If you have any feedback or suggestions about the Covesting module, kindly contact us at support@covesting.io

Sincerely yours,
Covesting team

Covesting Blog

Covesting is a licensed DLT services provider and trading…

COVESTING

Written by

COVESTING

Licensed distributed ledger technology services provider.

Covesting Blog

Covesting is a licensed DLT services provider and trading software development company. We offer the broadest array of software solutions for retail and institutional customers worldwide.

COVESTING

Written by

COVESTING

Licensed distributed ledger technology services provider.

Covesting Blog

Covesting is a licensed DLT services provider and trading software development company. We offer the broadest array of software solutions for retail and institutional customers worldwide.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store