February in Review
Dear Community,
In our previous Medium post, we discussed how the negative market conditions have impacted the success of our platform, and outlined the steps we would be taking in order to optimize our costs so that we can continue developing and progressing despite the gloomy market conditions.
We have continued to optimize our costs and to improve our platform throughout the month of February, and would like to inform you of our current take on the state of the cryptocurrency markets and how it has impacted the logistical development of our project.
Overall Market Conditions (Volumes, Price, Market Trends)
February proved to be a somewhat positive month for the cryptocurrency markets, as Bitcoin’s price was able to climb from monthly lows of $3,400 USD to highs of $4,200. Unfortunately, Bitcoin faced strong selling pressure in the low-$4,000 region that caused its price to sink back towards its current levels.
It now appears that Bitcoin has exited the active falling stage, and has now entered a stage of sideways trading. Former market participants are still wary of the current state of the markets, and are not showing any signs that they are in a rush to re-enter the volatile markets.
Covesting’s success is largely tied to investor’s desire to trade, and as such it is very difficult for us to grow our business during downwards and sideways market trends. Although our recent cost optimization efforts allow us to survive and continue improving the business, it is an arduous task to grow the business without generating a significant amount of revenue.
Because of this, we are presently focusing our efforts on laying the groundwork for long-term growth that will allow us to propel to the top of the industry during the next bull run. We are focusing heavily on spending our capital in a responsible way, while also actively engaging in politics and product development rather than trying to acquire new customers through an expensive and inefficient active marketing campaign.
Although growing our user base and increasing our profitability has been a challenge due to the dreary market conditions, we have continued to actively enhance the platform by designing and developing important for future releases infrastructure parts, fixing bugs, increasing its stability, and continuing to fine-tune its current features.
We will continue to enhance our platform on a continual basis in order to provide our clients with the best possible platform to enable them to make profitable trades.
Implementation of Short-Trading Capability
Because the markets continue to face significant downwards pressure, and many experts believe that the crypto markets will see increased selling pressure in the near-future, we are closely looking into adding short-selling capabilities onto the Covesting platform so that traders are able to profit regardless of which direction the markets are trending. This feature will be also be crucial for the success of the copy-trading.
Listing Procedures
Furthermore, in addition to implementing new features and improving our platform’s existing infrastructure, we are also setting a benchmark for ethical and efficient listing practices.
We have fully integrated the ERC-20 protocol, making it an incredibly easy process for us to list any ERC-20 token onto our exchange.
Moreover, we also developed from scratch a scoring system that allows us to ethically and efficiently evaluate new projects looking to get listed on Covesting. The GFSC approved this evaluation criteria, ensuring that it is in-line with our goal to always stay fully compliant with regulatory authorities.
The First Coin Listing on the Platform
Recently, we proudly announced that DigiByte (DGB) was the first cryptocurrency to be listed on the platform under the supervision of the GFSC. After a thorough evaluation, we — along with the regulatory authorities at the GFSC — determined that DigiByte fulfilled all of the criteria we have set forth for new coin listings.
DigiByte (DGB) is a rapidly growing global blockchain with a focus on cybersecurity for digital payments & decentralized applications. Over the past five years, DigiByte has become the world’s fastest, longest and most decentralized blockchains, with 253,942 core downloads, 7,791,552 blocks, and 12,435,328 transactions.
DGB/BTC and DGB/ETH pairs are now available for trading on Covesting. Fiat pairs will be introduced at a later date.
Marketing Campaigns
When taking into account the current state of the crypto markets and the lack of interest that former market participants currently have in re-entering their previous positions, engaging in an expensive active marketing campaign simply would not be a prudent decision at the current time.
The current conversion rate of new users stemming from marketing campaigns is dismal at best, which would mean that we would be spending a tremendous amount of money without garnering a positive return on our investment.
As we discussed previously, at the current time we want to continue focusing on improving our platform’s existing infrastructure in order to provide our clients with the best possible platform for making profitable trades, rather than devote that time to trying to acquire new users via a marketing campaign.
Current Priority
Because we can only speculate as to when the current market conditions will reverse, our highest priority right now is continuing to optimize our costs in order to increase our efficiency and to continue progressing in great strides no matter what the markets decide to do.
As we discussed previously, our success is largely dependant on the overall market conditions, therefore we are closely monitoring how the markets continue to unfold and are basing our priorities on that information.
We want to thank all of our community members for their continued support as we continue on this wild journey.
Yours,
The Covesting Team
