The COV token recently made headlines this week when it was revealed that users of the award-winning margin trading platform PrimeXBT and the Covesting copy trading module could purchase COV tokens directly from within the PrimeXBT dashboard.
With greater accessibility achieved, adoption can increase at a faster rate and more tokens will be taken out of circulation through COV staking and systematic token burns, highlighting the value of the deflationary tokenomics that the Covesting developers have created.
The benefits are two-fold, as with greater accessibility and more value, the ecosystem itself can grow. As the peer-to-peer community expands, this means more followers and more strategy managers who can create wealth for potential followers.
This guide details all the various ways that COV tokenomics benefits Covesting copy trading users, token holders, and the greater crypto industry at large.
What Is The COV Utility Token?
The COV utility token is the native cryptocurrency token to the Covesting ecosystem. It was designed to unlock the full potential of any products and services created by European fintech developer Covesting, which currently include a peer-to-peer copy trading module, and soon, an APY-generating tool called Covesting Yield Accounts.
The COV token began its life as an ERC-20 token, launched as part of an ICO pre-sale. As among one of the most successful for its time, it is also among the rare projects launched in 2017 that continued to work toward their goals and release the product they said they would.
In 2020, the Covesting copy trading module finally went live on the award-winning PrimeXBT trading platform, which offers long and short positions on forex, crypto, commodities, stock indices, and more, under one roof. Later, as part of a continued partnership, Covesting and PrimeXBT added support for COV token staking, which unlocks the true power of the platform and the COV token.
The two companies continue to roll out support for the COV token, which has become even more deeply ingrained within the fabric of the products and services they collaborate on. For example, Covesting updated the COV token itself to also work as a BEP-20 token on Binance Smart Chain, providing more options to token holders seeking to avoid high ETH gas fees. In addition, PrimeXBT just rolled out a way to purchase COV tokens directly through the account dashboard using the Exchange service tool.
COV Adoption And Accessibility
COV tokens are moving around more often as new users come into the ecosystem, which causes a need for alternative blockchains. The ultimate destination for these active coins has long been PrimeXBT so that users can stake COV tokens within the My COV section of the dashboard. With COV tokens deposited, users can unlock Premium, Advanced, and Elite account memberships.
With the latest platform update, however, PrimeXBT added the ability to purchase COV tokens directly through their Exchange service tool, located within the account wallet system. Typically, users can exchange any of the base margin currencies for another, but with COV only COV/BTC and COV/ETH trading pairs are available.
Users can now purchase COV and begin staking to unlock any of the increasingly better account membership levels. The Premium level unlocks a 10% trading fee discount for strategy managers and doubles the limit of possible followers. Followers get a 2% profit share increase and new following fees are eliminated.
At Advanced, new following fees are also eliminated but the profit share moves to 3%. Strategy managers at this level get a 20% trading fee discount and triple the follower increase. The Elite level gives the best overall benefits, with a massive 30% trading fee discount and unlimited followers. Followers themselves at this level get the largest profit share increase at 5%. Here again, the new following fee is removed.
COV tokens are staked by activating a membership level, and locking up a corresponding amount of COV tokens required for each tier. Although COV token staking can be deactivated at any time, staking tokens can have a potentially dramatic impact on a token by taking coins out of the circulating supply.
Staked coins aren’t taken out of the circulating supply permanently, however. But this methodology is still a part of COV tokenomics. A portion of the already limited COV supply is regularly burned by Covesting developers. A share of the fees generated from the Covesting copy trading module sans any follower or strategy manager’s cuts gets burned.
More than 660,000 COV tokens have been burned and there is less total coin supply than even Bitcoin – known for its digital scarcity. As the developers continue to reduce the total supply and available circulating supply drops, the supply of COV tokens is dropping. And with adoption about to kick into high gear due to PrimeXBT offering a way to purchase COV tokens directly where the Covesting module is located, supply could continue to be an issue.
Covesting Yield Accounts And A Change In Token Dynamics
Markets are in constant flux due to the push and pull of supply versus demand. We now understand what is happening with the COV tokens supply, and demand is only increasing. However, another reason to stake COV tokens on the way.
Staking COV tokens will also unlock up to a 2x APY boost when the Covesting Yield Account system debuts later this year, bringing the total possible APY to as high as 35%. Covesting Yield Accounts lets users connect to top DeFi protocols from within the PrimeXBT account dashboard, and access industry high variable APYs.
Deflationary tokenomics that can bolster the profitability of all of the products and services within the Covesting ecosystem are an unmatchable value that benefits the whole crypto community. Not only is there such potential for users of Covesting’s innovative tools, but such innovation pushes the entire industry forward and raises the bar for other projects across the market.
Covesting Yield Accounts are scheduled for a Q3 2021 launch and more information is expected from the developers soon.