Covesting is the cryptocurrency industry’s first form of copy trading to be widely available, introduced to the market in 2017 by Covesting, and in 2021 has become the fastest-growing alternative way to profitably engage with the crypto market.
Recently it was announced that a range of new token utilities relating to the Covesting module’s native cryptocurrency, the COV token, had been developed and integrated into the Covesting module, as well as the use of COV being provided to users of the module in order to gain a range of powerful new benefits.
One of these benefits is the ability for strategy managers to reduce the cost of trading on the Covesting module by anywhere up to 75%, and we are taking a look at how this is achievable, as well as breaking down the other COV token utilities that have been introduced into PrimeXBT’s Covesting module as well.
The Recent Launch of COV Token Utilities on the Covesting Module
Recently news broke that one of the most significant developments in the story of Covesting had been released, with this being for new COV token utilities that had been integrated into the Covesting module on PrimeXBT in order to allow the users of PrimeXBT to be able to access a range of powerful new benefits.
The goal of the release of his new COV token utilities was announced by the team behind covesting as a way to provide greater value for the holders of the COV token, to assist can vesting users further in being able to achieve optimal outcomes in the market, and to increase the scarcity of the COV token over time.
Both long-term COV holders and users of the Covesting module alike celebrated the new release of the 4 new COV token utilities as a significant step in the roadmap of the project, and as an opportunity to access a range of new exciting benefits.
But What Exactly is Covesting and How Does it Work?
Covesting is the world’s first form of crypto-based copy trading, and it was introduced to the crypto market in 2017 with the launch of the world’s leading crypto copy trading platform, Covesting.io, where in that year the project saw such high demand for the proposed copy trading services that it Covesting.io was able to raise $18 million in funding.
The basic principle of covesting is that experienced traders known as “strategy managers” create the strategies and the trades they would like to execute and then create peer-to-peer investment funds which those strategies are tied to directly and allow others to be able to copy the same trades by investing into the fund.
This allows other users, known as “followers”, to be able to easily and quickly compare and analyse different strategies on the Covesting module on prime XP to PrimeXBT in order to find the strategies that suit their investment profile most accurately, and then allow them to easily and quickly invest the capital into those funds.
The Covesting Module on PrimeXBT
From 2017 until 2019, Covesting.io worked to develop a range of tools and software infrastructure that would be used to bring copy trading to the crypto space for the first time, however in 2019 there was an announcement that Covesting.io would be partnering with the world’s largest multi-asset margin trading platform, PrimeXBT, in order to develop a module that would be integrated into the platform.
In April 2020, the beta of PrimeXBT’s Covesting module was launched for the first time and integrated into PrimeXBT, allowing its users to get a first-hand look at covesting and to access the tools that would be the core of the Covesting module when it was released.
After the 4-month beta phase, it was announced as a success following more than $1 million worth of equity being provided into different funds throughout the 4 months, and the full version of PrimeXBT’s Covesting module was then released in August 2020.
What are the Advantages of the COV Token Utilities?
- Followers
Success Fees Improved
Whenever a successfully profitable trade is completed by a strategy manager, there is a success fee that is generated between them, their follower, and the platform itself, where this success fee is split between them.
With the use of the first new COV token utility, followers are able to tip the balance in their favour with regards to success fees, gaining more of the success fee for themselves, and in turn increasing the revenue that they generate from their successful investments on the Covesting module.
No 1% Entry Fee
The second new COV token utility that is specifically beneficial for followers is the ability to remove the need to pay the 1% entry fee that is required of all followers when they select and follow a strategy manager for the first time.
Over many different followings, the reduction of this 1% entry fee every time can have a dramatic impact on overall profitability and can be an important advantage for followers that use the COV token in order to access this.
- Holders
New COV Token Burn Program
Up to 50 % of all fees generated on the Covesting module will also now be burned as a new COV token utility that has been introduced by the Covesting team in order to increase the value and scarcity of the COV token.
This initiative provides those that hold the COV token, whether they are long-term holders or Covesting users, with the ability to achieve greater levels of utility value from COV as they hold it over time.
- Strategy Managers
Trading Fee Reduction
Strategy managers on PrimeXBT’s Covesting module are able to reduce their trading fees by 25%, 50%, or 75%.
This reduction in trading fees can be of significant advantage to strategy managers and can allow them to retain more of the revenue that they generate when they use the Covesting module, with this representing a significant advantage for strategy managers.
In Conclusion
Now users on PrimeXBT’s Covesting module are able to enjoy a range of different COV token utilities that have been introduced and that can be activated with the COV token.
Any one of these for new COV token utilities provides benefits and opportunities for strategy managers and followers, and all of the token utilities work to increase the scarcity of the COV token as well.
Find out more about Covesting, PrimeXBT’s Covesting module and the new COV token utilities here.