To ensure a high level of transparency, we always seek to keep the community informed about any notable developments, and as a result, we wanted to issue an update about any current developments, priorities, future goals, and more.
Covesting’s Journey Thus Far
As most of you may already know, Covesting has accomplished many of the initial goals we first set out to achieve, including:
● Created a secure cryptocurrency wallet, and a powerful, stable cryptocurrency exchange with a high-speed internal matching engine for both desktop and iOS devices.
● Developed external liquidity aggregation providing unmatched market depth and high liquidity from a variety of sources.
● Built fiat-crypto and crypto-fiat gateways.
● Received a DLT license from the GFSC and 3 additional licenses from the FSA in Estonia.
● Launched a cryptocurrency intelligence portal with news aggregation, educational materials, guides, trading tutorials, and much more.
All of these developments are in line with the original roadmap that was included in the Covesting whitepaper in 2017 and are just small pieces in the complex puzzle that is building the most complete and legally compliant cryptocurrency trading infrastructure. However, some of the developments gained little traction in the market due to the crypto market downtrend reducing interest in high-quality cryptocurrency services and a massive increase in competitors across a saturated market.
However, the most important piece of the puzzle is still missing, and has yet to be delivered: Copy trading — a peer-to-peer asset management module with integrated COV token functionality.
Copy Trading Update: Shifting to B2B Implementations
After extensive research and an abundance of testing, we have concluded that integrating copy trading functionality into a spot exchange would be both challenging and counterproductive. The current Covesting infrastructure is designed for spot trading, and the DLT license limits Covesting from adding margin trading or the short-selling of assets allowing traders to profit from market declines. This means that in its current state, the copy trading module would offer very few of the benefits professional traders expect, and would not offer the full copy trading experience we envisioned.
Naturally, copy trading would need to be implemented following the release of margin trading and short-selling, or an alternative solution would need to be deployed. Therefore, the Covesting team decided to shift its focus toward B2B partnerships that would facilitate the release of the copy trading module on third-party platforms.
After the first successful third-party implementation, we will begin seeking new partners. Importantly, the COV token will be integrated within each B2B implementation of the copy trading module.
We remain in close communication with the GFSC and provide them with regular updates on all project developments and the new focus on B2B partnerships and third-party platform implementations.
The Advantages of B2B and Institutional Partnerships
As has been proven, the Covesting team excels in developing cutting-edge trading technology, and we strongly believe that providing our trading technology to established exchanges and trading platforms will put Covesting in a more advantageous position rather than competing with these platforms directly. Here’s why:
Partners will have an already established user base that can be introduced to Covesting’s proprietary trading technology and the COV token. Launching the copy trading module on an established third-party partner platform will provide a much-needed revenue boost, and raise awareness of the Covesting brand and COV token. With each new established partner, both Covesting and the COV token will reach an increasingly larger user base, accomplishing the original function of utility token and bolstering the brand’s reputation.
Update on PrimeXBT Covesting Module Integration
Implementing such advanced trading technology is difficult, complex task. The most demanding aspect of the implementation on PrimeXBT is developing the risk management system and monitoring system, designed to exclude any fraudulent activity from the platform immediately.
Although we are an intermediary, it is important for Covesting to do everything possible to protect investors, and this important step in the process requires additional time to finalize and ensure the safety and security of all investors and traders taking advantage of the Covesting module on PrimeXBT.
We are not sharing any estimates on completion at this time, however, we will share yet another updated with the community once we are closer to launched. In the meantime, a live preview of the Covesting module is available on PrimeXBT.
Stay tuned to the Covesting Medium for additional updates in the future. Thank you to the community for your ongoing support and patience.