In the new year, Covesting continues to push ahead developing the Covesting platform and further utility around the COV token.
We regularly receive requests for more information from community members, however, it is impossible to answer all questions individually in a timely manner, while still focusing on the tasks at hand.
To provide clarity on the most important aspects of the Covesting strategy in the new year, our team has prepared an update outlining certain factors that are beyond our control, and offer details on the full business plan moving forward.
Planning Covesting’s Near-Term Future Outlook
At this point in the development cycle, the Covesting team must stay on course and remain focused on the goals we set many years ago and the strategy we have modeled to execute our plan.
To stay on a clear path, here are the most important factors we are putting our full attention on:
We’re highly focused on completing development at the moment. Each day, we’re working toward finalizing the integration process. All details on development are available on the release notes for all users to clearly see.
The community is urged to check the release notes frequently for status updates on development progress and allow our teams to complete their work.
While development is among the factors we fully control, building a revolutionary financial product is a long, painstaking process where many challenges are faced, both expected and unexpected.
Deadlines are based on what bumps in the road we anticipate but are easy to miss when random bugs or hurdles appear in the development process.
Once B2C demand began to wane, we made a decision as a business to focus on the B2B market through partnerships with other established trading platforms in order to provide the COV token with the utility we set out to create for it, while also making our services available to as many users as possible.
By introducing the COV token and the Covesting fund management platform on other trading platforms, the products and services will be immediately exposed to large, existing user bases, instantly growing demand for the token and exposing the service to the largest set of users possible.
We firmly believe this was the best decision for both for the future of the COV tokens and COV token holders, as it will ensure the longevity of the token and increase its value through expanded utility.
Marketing is an incredibly costly effort that requires much planning for proper execution. With our focus being on development still, any marketing planning would take resources and effort away from the development process — which is where our priorities should lie.
We refuse to launch a marketing campaign just for the sake of doing so or to inflate the price of the COV token. To ensure the long-term success and health of the COV token, we are operating in the most cost-efficient mode possible until the development process is completed.
Only then, will we begin to introduce our marketing campaign, which will be a mutual marketing campaign in partnership with PrimeXBT to most efficiently promote our products and get the most results for the marketing investment.
Influential Factors Beyond Covesting’s Control
While our business strategy has clearly pivoted to address changes in the cryptocurrency market environment and the risk appetite of traders, there are a number of factors that remain outside of the control of the Covesting team.
These external influential factors include:
COV Token Trading Volume
Covesting has no direct control or influence over the buying or selling of the COV token necessary to satisfy the requirements of cryptocurrency exchange Kucoin. We also refuse to waste any funds partaking in underhanded attempts to artificially inflate trading volume to influence Kucoin’s decision.
COV Token Price
We also have zero influence over the price of the COV token. Like any financial asset, value is determined by supply and demand dynamics. As the product is released and utility increases, demand will rise and could potentially cause prices to follow.
However, this is completely outside of our control, and while utility does drive value, there are examples of other utility tokens dropping in price following the successful launch of a product. Others have skyrocketed after the product was officially introduced.
There’s simply no way to control or even tell what may happen to the COV token price in the future.
Market Environment and Demand
The crypto industry has dramatically changed since the COV token was first introduced to across the market. At launch, the demand for such products was sky-high, and there was an arms race for platforms to build products catering to interested crypto traders seeking moonshots and Lamborghinis.
The risk appetite and consumer interest in cryptocurrency have fizzled out from then to now, causing less demand in the products and services we offer.
All markets are cyclical, and interest is once again beginning to pick up. However, a full return of the hype the crypto market previously experienced could take many more months.
The crypto market is still very young, and has incredible potential to disrupt the finance industry as we know it — demand will eventually return and even exceed those levels, but investors must remain patient.
We also cannot be certain at the end of the day that users will utilize the platform and services regularly. Through listening to user feedback and implementing improvements over time, we are confident in our ability to release a compelling product traders will love, but traders actually registering to try the product is yet another factor outside of the control of the Covesting team.
Covesting remains committed to seeing through our strategy and launching the Covesting fund management service on PrimeXBT and other B2B partners in the future. We also remain completely focused on developing the platform and the utility of the COV token.
While we cannot influence many factors including token price, trading volumes, or market demand, we are confident in our ability to release a groundbreaking product that the cryptocurrency market will utilize, growing the demand and utility of the COV token and further bringing success to the Covesting vision.