Covesting is a cryptocurrency trading blockchain platform that allows traders and investors to connect, acting as a peer-to-peer asset management solution. Users can connect with traders and replicate their trades, allowing for a mutually beneficial relationship where both sides can profit off each other. The platform allows for up to 20 different trading strategies to be followed simultaneously, making it a proper tool for risk hedging.
Covesting’s public crowdsale went on for over a month, raising a little bit over $18 000 000
The platform makes it possible for investors who are interested in the cryptocurrency market, but do not have enough time to devote to trading full-time to pick, choose and compare the performance of hundreds of cryptocurrency traders. When an investor finds the suitable trader, the Covesting platform will synchronize all trading activity between the pair. It is important to note that the funds of the two participants are segregated and that Covesting is not a collective investment scheme. Covesting offers its users to diversify in up to 20 trading strategies and properly manage their risk.
Traders in the Covesting platform can offer their services to the userbase in a transparent, unbiased environment. The more successful the trader is, the more followers they will acquire, allowing them to monetize their skills. Trading models can be easily created via linking an existing account with an exchange through an API. Traders can create models and track their performance, earn success fees on all profits made by the model and get reviews from current and previous investors.
The COV is an ERC20 token based on the Ethereum network. All transactions and model subscriptions are paid for with the COV token, COV holders also get a 50% discount on all trading fees on the Covesting Exchange.
Despite being mainly marketed for its “asset management” feature, the Covesting platform only offers an exchange. Their trader-copying is still not live and the fees that are planned for it seem to be pretty high. Another disadvantage is that it won’t allow anonymity, with users being required to go through a mandatory KYC.
Covesting is a decent project and while a lot of things about it sound great, they aren’t available yet. The team seems in check with members having previous experience in big financial institutions. We’ll have to wait and see what the future holds for the Covesting platform and if it’ll manage to attract a large user base.
