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COV utility token staking explained

The COV utility token isn’t just a trending cryptocurrency, it is also the native cryptocurrency token to the Covesting ecosystem of products and services, developed by a licensed fintech developer of the same name. The team, the token, and the copy trading module all come together to bring forth among the most innovative experiences across the trading community today.

Keeping that tradition going, Covesting has recently introduced COV token staking, which unlocks new membership levels each with unique account enhancements. These account utilities are unlocked through the power of the COV token, and are geared toward boosting profitability and getting the most out of the Covesting experience.

Here’s everything you need to know about COV token staking, the utilities unlocked, the new membership levels, and much more. We’ll also share some important details about an upcoming Covesting product that promises even more value from the native crypto token.

What Is Staking?

Staking is a relatively new term in cryptocurrencies but is gaining popularity quickly as it often offers an alternative to investing or trading, while still providing profitability for crypto holders in some way. Staking involves locking up tokens in exchange for some type of reward incentive.

Many methods of staking simply unlock a variable APY rate for holders, while staking some tokens unlocks a bevy of features related to the native crypto account. For example, staking the cryptocurrency Tezos gives holders roughly a 4% APY, while staking COV tokens unlocks account-level utilities within the Covesting ecosystem.

Crypto protocols that allow staking rely on a proof-of-stake consensus algorithm instead of the energy-intensive proof-of-work system that Bitcoin uses. The more tokens that are part of the staking process, the more secure the underlying blockchain becomes. Staking tokens also theoretically takes tokens out of the market supply temporarily which can lead to less surplus being sold in the market.

What Is COV?

The COV token is an ERC-20 token built on the Ethereum network that recently received cross chain support to work with Binance Smart Chain.

The COV utility token is the native crypto token underpinning the Covesting suite of products, such as the Covesting copy trading module. It was designed to be used within the Covesting copy trading module to unlock a variety of account-level utilities for followers and strategy managers.

The total supply of COV tokens is currently around 19.3 million after more than 600,000 tokens were burned. Of that supply, more than 1.5 million COV tokens are currently locked up as part of COV token staking. The current market cap of COV is more than $7.5 billion.

What Is Covesting?

Covesting is a Europe-based DLT-licensed fintech software developer who is behind the copy trading module and peer-to-peer trading community found on the award winning PrimeXBT.

The Covesting copy trading module connects followers with strategy managers who show their success through a global leaderboard based on profits. Several other success and risk metrics are also tracked so followers can select to suit their risk appetite and profit goals.

Followers earn a portion of the success fees generated from the successful trades they copy, and strategy managers earn a portion as well to keep them incentives and highly competitive. Followers are able to skip out on losses from early mistakes and bypass all the headaches associated with managing positions. Strategy managers can make more money than possible on their own by leveraging their follower’s equity. It is a win-win situation for both sides of the trade.

What Is COV Token Staking?

COV token staking is a new feature that involves locking up a specific amount of COV tokens in order in exchange for unlocking a set of compelling account level utilities and enhancements. For example, all levels eliminate entry fees on new followings.

At the $3,000 worth of COV level, standard accounts become Advanced, and the profit share that goes to the follower is increased by 2%. The follower limit is also doubled. Strategy managers will enjoy a trading fee discount of 10%

With $10,000 in COV locked up instead, Premium accounts become active and the profit share goes to 3%. Follower counts are tripled for this level, and there’s a trading fee discount of 20%.

Each level gets better with more benefits enabled, which is why Elite is the best of the best. At $50,000 worth of COV staked, unlimited followers are enabled, along with a 30% trading fee discount, and a massive 5% profit share increase.

Membership levels can be deactivated or upgraded at any time, but provide the most opportunity to traders while active.

COV staking will also later be enhanced to provide an APY boost for those who lock up tokens. Upcoming Covesting Yield Accounts will debut later in 2021 and also allow other cryptocurrencies such as ETH, USDC, and USDT to be staked for an APY. Staking COV tokens will further enhance the APY of other staked tokens.

What Is Next For Covesting?

Covesting will continue to bolster the copy trading module according to the company roadmap, helping those that don’t know how to invest in cryptocurrency become exposed to markets for the first time as followers. Strategy managers will keep growing their profits and their notoriety across the global trading community.

COV tokens will also continue to be burned systematically at an alarming rate, pushing the supply of the deflationary token even lower. With a supply that’s less than Bitcoin’s, the rarity and utility combined could be a one-two punch for token holders.

The Covesting team also will be introducing a new Covesting Yield Account system, bringing DeFi industry APY interest rates to PrimeXBT. The interface will connect with popular DeFi protocols like Uniswap and PancakeSwap to access top DeFi rates.

With COV token staking enabled, another 2x APY boost is possible due to another upcoming utility feature being added to the Covesting ecosystem alongside the Covesting Yield Account launch. You can learn more at this website or join a waitlist for an additional 1% APY boost when Covesting Yield Accounts make their debut later this year in Q3 2021.

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