The Covesting team is always planning updates and new utilities for the COV token. As such, we are putting the spotlight on what is currently available ahead of the expected expansion.
Here is a closer look at the Covesting copy trading module, Covesting yield accounts, the My COV section of PrimeXBT and everything you need to know about the COV utility token.
What Is The COV Utility Token?
The Covesting (COV) token is the native cryptocurrency utility token to the Covesting ecosystem of products and services – innovative solutions that are available for finance industry B2B partners to integrate into existing platforms with a large install base.
At the center of this universe of products and the massive trading community they command, there is the COV token and the plethora of utilities it unlocks for users who select one of three membership tiers above the standard account level.
Covesting Supply And Tokenomics Explained
Before we get to the different levels and utilities, let’s first take a look at the COV token supply and tokenomics. Bitcoin is often valued based on its scarcity of 21 million. The COV token is even more scarce, at under 19 million COV. The supply is always diminishing, with the Covesting development team reaching more than 1 million tokens burned.
Covesting remains the largest holder of COV tokens making it in their best interest to build long-term value into the tokenomics of the cryptocurrency. A massive portion of the supply is also locked up in COV token staking, which we will explain in great detail.
Where To Get COV Tokens?
COV tokens are available for purchase at Kucoin, Uniswap, and at PrimeXBT using the built-in exchange tool. Users must swap BTC or ETH for COV tokens. COV token is an ERC-20 token built on the Ethereum blockchain, and can be stored in any ERC-20 token wallet. The COV token is a major reason behind why PrimeXBT released its V2.0 upgrade, where it added support for COV tokens, ETH, and the ERC-20 version of top stablecoins USDT and USDC.
Since then, COV token staking was made available which unlocks three memberships above the standard level. Memberships include Advanced, Premium, and Elite levels, each with increasingly higher costs in COV, but in exchange get a much better level of benefits. Benefits include a profit share increase for followers, trading fee discount for strategy managers, and up to a 2x increase on yields within the Covesting yield account system.
What Utilities Does COV Token Unlock?
But how exactly do these tokens fit within the ecosystem itself? First, we must take a step back to review the Covesting copy trading module and Covesting yield accounts and their standard benefits, in order to understand why the COV token is so powerful.
Covesting Copy Trading For Strategy Managers And Followers
To start, Covesting copy trading is the company’s flagship product, in which the COV token is the native token to. Covesting copy trading connects followers and strategy managers together so they can profit from one another in a unique and innovative way.
Strategy managers create an account that is then monitored and performance is tracked for publication within the Covesting global leaderboards, which let followers then use the information to choose which strategy managers to follow and profit from. These strategy managers know exactly how to trade Litecoin, Bitcoin, Ethereum, and the other assets listed on PrimeXBT. Once following, followers will automatically copy the trades of these strategy managers – win or lose. This makes it crucial to pick the winners based on not just total profits, but safety.
Covesting includes tons of metrics on risk and success to review, as well as a five-star rating system that looks at trading turnover, margin allocation, and other safety factors. Top ranked strategy managers have in the past earned as much as 100,000% in total profits, earning their followers even more money along the way.
The COV utility token increases these profits by improving profit shares, lowering trading fees, and increasing following limits while at the same time eliminating new following entry fees. What this creates is a perfect storm of portfolio building, allowing followers to put capital behind several top performing traders.
Covesting Yield Accounts Make DeFi Easy For The First Time
The Covesting yield account system is entirely different, and doesn’t require active trading at all. It instead focuses on passive income generation through a yield generating account. These accounts connect directly to DeFi protocols in just a click, rather than all the technical expertise that’s normally required to do so.
By connecting to protocols like Curve, Compound, Uniswap, and others, users can easily stake idle crypto assets for a variable APY return in crypto rewards. APY rates vary depending on trading volume, demand, and other market conditions. Rates reach up to 10% currently, but can be increased by up to 2x by staking COV tokens, in addition to any crypto assets in the form of USDT, USDC, or ETH.
In the future, Covesting will add additional DeFi protocols, CeFi platforms, and much more to ensure the highest possible rates for users, and the most possible applications. The tool makes DeFi accessible for the very first time, and with the power of the COV utility token, DeFi can become even more meaningful.
Conclusion: Whatever Covesting Comes Up With, COV Unlocks Added Utility
In terms of what is next for Covesting, anything is really possible, users of the Covesting copy trading module never saw the yield account module coming, and we are certain whatever the DLT licensed fintech developer from Europe comes up with, it will cause shock and awe.
What is also certain, is that at the center of the experience, will be the COV utility token. All of Covesting’s products and services are created with the goal of improving the value for token holders of COV, which also in turn benefits the entire ecosystem as a whole. COV tokenomics are designed to reward those to take part in this ecosystem, and are most active within it.