COVESTING Coin Review
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Covesting coin (COV) aims to help investors from different parts of the world, in the process of getting knowledge along with benefits from cryptocurrency market. The company aims to accomplish its goals through peer-to-peer asset management. The idea behind P2P asset management is the process of sharing investment strategies with random people, without any participation of traditional financial institutions. The idea of Peer-to-Peer asset management is created by Covesting. Let’s learn all about it.
What is COVESTING?
Covesting, as a platform, makes users able to mirror the trades that were made by successful traders in the crypto field thereby sharing the success and profits. The platform aims to help investors from different parts of the world, in the process of acquiring financial data and knowledge regarding investing along with benefits from cryptocurrency market. It aims to accomplish its goals through peer-to-peer asset management. The idea behind P2P asset management is the process of sharing investment strategies with random people, without any participation of traditional financial institutions. What’s proprietary about Covesting is their idea of peer-to-peer asset management, as they call it. Covesting also wants to make sure that anyone can now “know” how professional traders think, and why they think so, and then invest their funds on their own, or simply “follow” professional traders’ footsteps. Each trader will have their profit/loss ration as well as other success indicators listed.
Having the ability to aggregate liquidity from top cryptocurrency exchanges, Covesting provides investors with the opportunity to do the following:
- Binary trading
- Algorithmic trading strategies
In simpler terms, it means that they can join funds to provide better deals on the trades than any single trader could. Before copy-trading platforms, only institutional traders could get these deals. For the investor, the advantage lies in trading without a care in the world, due to constant information provided by the traders, and due to trading decisions already being made, and the investors only having to follow them.
Covesting interesting features
- A decentralized peer-to-peer exchange with a data portal that aligns with investors’ behavior and preferences.
- Getting better deal trades because of aggregating liquidity that the Covesting platform could provide.
- They are inclined to regulate their area of business, making them completely regulated. Both their team and their advisory board have lawyers trying to regulate the position of Covesting in the eyes of the law.
- Dimitrij Pruglo, an investment manager and trading professional from Cyprus founded this platform and is standing as the CEO and “front man” of this project. With his 12 years of experience in dealing with many asset classes, he is the front pillar of the Covesting team. The idea of copy-trading is not his, but the decentralization and tokenization of it are.
- Tim Voronin is COO and Co-Founder of this project and is an early cryptocurrency adopter and an experienced traditional markets trader. He is standing next to Dimitrij Pruglo as the pillar of Covesting.
- Besides the two of them, the team includes nine more people that share great knowledge of the law, crypto markets, traditional markets, and the blockchain itself. On top of that, Covesting has five advisors on their team, which include advisors in the FinTech department, Crypto department as well as Lawyers.
Covesting Coin (COV)
Covesting coin, which is also referred to as COV, is an ERC20 token. The smart contract system of Covesting is built on the Ethereum blockchain. It is designed in a way that the Covesting members can easily use it within the Covesting platform. The fact that COV tokens are ERC20 type makes them compatible with a number of ERC20 wallets. It also makes it easier for Covesting to get integrated into various cryptocurrency exchange platforms. At the same time, Covesting coins are easy and quick for making different transactions among the users and on the Covesting platform. The main reason why members of Covesting platform need to get COV coins is that these tokens are utility tokens. In other words, in order to follow different trading models that the crypto traders provide on this platform, you need to have COV utility tokens. The process takes place as follows:
- Models start generating profits.
- The investors receive an initial sum allocated.
- In addition, all the profits are being converted into COV coins.
- As a result, the value of the holding of the given investor increase in form of the COV tokens.
The demand for these tokens is also correlating with the volume of the copy trading that takes place on the platform of Covesting. In case the number of the traders and the investors are going up, the value of the COV tokens are going up as well. The correlation is positive because the acquisition of a large number of investors and traders of models on the platform is the fundament for the COV token growth. To encourage the smooth development of this strategy at the time of the launch Covesting involved a number of professional traders. The Covesting team did so to make sure that the early users have a chance to pick something suitable from the wide variety of trading strategies on the Covesting platform. The company is sure that the successful implementation of the process would:
- Bring profits to the members.
- More people will be interested in Covesting and the number of participants will go up.
- The price of the COV coins will increase.
- The appreciated coins will make the coin holders better off.
The price of COV as of April 1, 2018, is worth $0.619 as it has a 0.49% growth. Please note that at the time of the ICO 1 ETH was equal to 200 COV and at the beginning of 2018 a COV token was worth more than $2.
Many people do not fully believe in Covesting as they think that it is not able to last for a long time and will eventually crash. The issues which may result in a crash is the copy trading that is implemented in Covesting. To make things clear, copy trading lets traders copy (automatically) positions and monitor the transactions which are managed by the selected investor. In Covesting there is a peer to peer asset platform where the copy traders can earn trading profits and success fees. The idea behind copy trading is risky because it is hard to predict what will happen, a lot of traders involved in it do not care about the copiers and they worry only about their commissions. To be more precise, the process is risky and may be not very profitable for the users. This may result in many people drawing out from Covesting and therefore, the price of the tokens will experience a dramatic depreciation.
How does it work?
Covesting platform is based on a few things regarding their token:
- Buying a token enables you to get into the platform.
- Using the tokens, you can follow the trades of a professional trader.
- Profits are split between the investor, the trader and the platform.
- COV tokens can then be converted to other cryptos on exchanges.
- The price will constantly increase due to Covesting constantly buying and removing the tokens from the circulation.
The covesting token is an ERC20 token and has a supply of 20,000,000, out of which 75% has been available for regular sale, and 7% for Pre-Sale. 13% of the token pool has been left for the Covesting team, while the remaining 5% is dedicated to marketing and bounties. Comparing it to other ICOs, the token distribution is very good and thought through.
Covesting price growth
Covesting has yet returned investors’ money and doesn’t have a working platform, so it’s all based on speculation. Compared to Bitcoin value, COV token has “returned” 96% investment, and a bit less if we are comparing it to Ethereum and US dollar. People, who invested early and grabbed the bonus Covesting offered, have made some money on the official launch of the token on exchanges.
Covesting ICO begun on the 24th of November, 2017, and was intended to release COV tokens in return for the maximum amount of 25,000 Ethereum, or $18,800,000 at that time. The team also had a Pre-ICO which ended in one month and lasted from 20th of October 2017 to 19th of November 2017.
The ICO had a soft cap of 2,000 Ethereum, and a hard cap of 25,000 Ethereum, and was supposed to end by the 15th of January 2018, but was ended earlier because the hard cap was reached by December the 31st 2017 raising $18,750,000. The bonuses were enormous and went up to 53%.
The ICO was extremely well covered on Youtube, Facebook, and Twitter, as well as Reddit. It reflected in them having over 1,000,000 hits on their website in December 2017.
How to earn with Covesting
Covesting platform offers a simple choice of following one or more (up to 20) successful traders and their ideas, and invest along with them. All the profits they make, you make as well. They will earn 18% of your earnings too, through Covesting and by COV tokens, while the Covesting platform will take a 10% fee, leaving 72% of the funds available again. The token would constantly be bought and burned (removed completely) by the company so it would be liquid and more valuable over time, so investors, as well as holders, would have financial incentive to get into this project.
Future and problems of Covesting platform
Covesting as a project envisions creating a decentralized fully legislated platform built on the blockchain, somewhat of E-toro, which has become a massive success in the copy-trading business, both financially and exposure-wise. It makes a lot of money for the investors, traders and the company itself. But will Covesting follow their footsteps? Crypto markets are volatile, sometimes too volatile to predict, which means that, with great gains, great losses occur sometimes. That might cause a problem to Covesting. Some people just might not be able to handle the risk, which is much higher than the traditional markets trading, judging by volatility.
Another problem might be the legislative part. No one knows how the legislation of the project will end up being, due to the unregulated nature of cryptocurrency market itself up to some extent.
Also, the project needs to have enough market traction and investors to become a true market dominator, so it will get better deals with the exchanges, to provide better success and profits.
How to buy COV token
COV token has been successfully listed on-
- Kucoin– BTC, ETH\COV
- IDEX– ETH\COV
- HitBTC– BTC, ETH\COV
- Livecoin– BTC, ETH\COV
- YoBit– USD\COVX, Very low volume, and high price.
After registering on any of these exchanges (they all function the same), you can deposit Bitcoin (BTC) or Ethereum (ETH) regularly, like every other BTC and ETH transactions, and then trade them for COV token.
Once the token has been acquired, it can be transferred to any ERC-20 supporting wallet, like MyEtherWallet, MetaMask, Mist, Parity, Trust… All of the wallets function in the same way. It requires making a wallet address (an account) in any of these and just sending the COV tokens to the address like it was Ethereum.
Covesting has a well-proven idea of copy-trading brought into the crypto market, where the volatility can go in or against your favor. Which one will happen? Only time will tell. So far, with the coin on many exchanges but with such a low volume, it’s considered a bad buy, unless something happens to the fundamental aspect of it.
Thanks for tuning in, and don’t forget to check for our next article! We are covering every aspect of the crypto world that you can imagine, so stay tuned!