In the ever-evolving crypto market that never sleeps, new trends and coins are popping up every passing day. The recent decentralized finance explosion has only hastened the pace at which fly-by-night coins are being created.
At the same time, however, the booming bandwagon has also shed light on long-time projects coming out swinging with new life and shaking up the cryptocurrency market. Take Ethereum trading for example–the crypto asset has recaptured the bullish momentum of the ICO movement.
Another token – the COV token – born during that last significant boost to the crypto market has taken the long crypto winter to develop a strong foundation which is now at the core of the Covesting copy trading platform, recently debuted on the award-winning Bitcoin margin trading platform PrimeXBT. Here are the five most important benefits the ERC-20 DeFi token COV brings to the copy trading platform and decentralized finance space.
Trading Fee Reduction
The COV utility token was designed first and foremost with fee reduction in mind. Fees regularly eat into trader’s profits. Each successful trade closed using the Covesting copy trading module takes a commission from the profits generated, then part of the profits go to the strategy manager and the follower. While finalized tiers have yet to be determined, increasing levels of COV tokens held can lower rates by as much as 10% to a 100% discount.
Improving Success Fee Percentage
In addition to lowering the trading fees for strategy managers doing the trading, the more COV tokens a follower stakes, a larger share of the success fees generated from each strategy manager’s winning trades will go back to the follower. By improving the profitability for followers, followers will be more apt to consider following other strategies and reinvesting any capital earned into additional strategies, helping to grow the entire Covesting peer-to-peer ecosystem.
Increase Follower Limits
Anyone can become a strategy manager and start their career trading and build themselves a reputation across the global trading community thanks to Covesting’s transparent five-star rating system. However, there is a limit to how many followers each strategy manager can have following them at any given time. The solution to this is the COV token. The DeFi token enables more followers and, therefore, a larger pool of equity to trade with and larger financial opportunity.
Part of what makes cryptocurrencies so unique is due to their deflationary design. Not only is the supply scarce to begin with, but several tokens also have mechanisms that further reduce supply and drive up value and demand. Covesting says it will burn “a portion of the fees generated within the Covesting module at regular intervals,” either monthly or quarterly. Each token burn will result in reduced supply, greater demand, higher value, and even more utility for early holders of the COV token.
Partner-Specific Secondary Features
While there are already four exciting “core” features the COV token enables on the Covesting copy trading module, there are still surprise secondary features coming that will vary by whatever platform the Covesting module is offered on, through the company’s white-label licensing agreement. At launch, the Covesting copy trading module is available exclusively on PrimeXBT. For example, these secondary features could lower fees on other PrimeXBT products or drive further innovation by bringing exclusive and unique tools to the market.
These are just five of the first features the COV DeFi token will enable on Covesting. And with more on the way designed to complement the features of the award-winning PrimeXBT in some capacity, the trading community and decentralized finance space will never be the same again.
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