How Does COV Token Burning Work on PrimeXBT?

Covesting has been one of the most prominent trends within the crypto space over the past couple of years, as it allows its users to collaborate in ways that open up new opportunities for the reduction of risk and typically lead to improved outcomes in the market. 

Miners Garden
Miners Garden

In the past few weeks, a range of sweeping new changes to the Covesting module at PrimeXBT have been announced where 4 new token utilities for the native cryptocurrency of covesting, the COV token, have been the centrepoint of these changes. 

We are looking at one of these new COV token utilities in particular, being the ability for holders now to enjoy a new token burn program where the COV token will be regularly bought from the open market and burned, as well as looking at the implications of this new token utility, as well as the others that have been recently released. 

What is Covesting?

Covesting is a system for cryptocurrency traders and investors to be able to come together, to pool their resources, and to allow the traders that have the most experience and knowledge to be able to create the trades that are copied by the rest of the group. 

In this way, the lesser-experienced members of the group can use the experience of the leading trader to reduce the risk and have a higher chance of their capital being invested in a profitable way in the cryptocurrency market, while the leading trader is then able to generate additional revenue in the form of a 20% success fee from the other members of the group. 

The success fee is applied to all profits that are generated on behalf of the rest of the group by the leading trader, also known as the “strategy manager”, and this system is an efficient and streamlined way to collaborate in the cryptocurrency space. 

What is the COV Token?

The COV token is the native cryptocurrency of the covesting ecosystem, and following its launch in 2017 but, the COV token rapidly reached its all-time high of $3.28 in that year. 

In the past 12 months, the COV token has seen a growth of more than 1,000%, with this showing it has been one of the strongest performing altcoins throughout 2020, and leading investors and analysts to wonder whether the COV token will be one of the top performing assets of 2021 as well. 

Now users of PrimeXBT’s Covesting module are able to hold and stake the COV token to unlock a range of benefits that optimise is the way that they use the Covesting module and ultimately leads to a greater level of revenue generation. 

What is Copy Trading?

Copy trading in general was created almost 15 years ago in the traditional asset market with pioneers such as eToro initially creating platforms based around copy trading that grew rapidly in adoption and popularity throughout that period. 

Copy trading is the practice of some traders allowing others to copy the trades they execute in the market, typically with there being historic data about the performance of the trader being available to potential investors, and with the traded that allows others to copy generating additional revenue by allowing other users to copy their trades. 

Although the cryptocurrency market began in 2009, it wasn’t until the launch of covesting in 2017 when copy trading was finally available to cryptocurrency users in any kind of significant way, with covesting now growing to be the largest form of crypto copy trading on the market in 2021. 

The Recent Launch of the COV Token Utilities

Recently a range of new token utilities for Covesting’s COV token have been created and integrated into the Covesting module at PrimeXBT in order to allow users to be able to unlock a range of powerful new features. 

The 4 COV token utilities are the ability for followers to remove the need to pay a 1% entry fee for following new strategy managers, the ability for followers to earn more from the success fees that are created, the ability for strategy managers to reduce their trading fees by up to 75%, and the introduction of the new COV token burning program where up to 50% of the fees generated on the Covesting module will be used to buy and burn COV tokens. 

These new COV token utilities represent one of the most exciting developments in the story of covesting and have been widely and enthusiastically welcomed by the covesting community and by long-time COV holders. 

Surprise Token Burn and Upcoming Regular Token Burns

In celebration of the new COV token utilities, the team behind covesting surprised the market by buying and burning 186,127 COV tokens with a rough value of $124,000, representing almost 1 % of all COV tokens in existence. 

With the removal of such a significant amount of COV tokens from the market for ever it is no wonder that there was an immediately positive reaction from the market, with the increased scarcity of the COV token being reflected in market action where investors sought to secure amounts of COV and with this increase in demand correlating to the significant reduction of the total COV in existence. 

This has been coupled with the introduction of the new COV token burn program where there will be ongoing and regular buys and burns of COV, with up to 50% of all fees that are charged on the Covesting module being put towards buying COV from the open market and burning it. 

In Summary

All 4 of the new COV token utilities to be integrated into PrimeXBT’s Covesting module will have a dramatic and ongoing impact on the scarcity of COV and the value that covesting users are able to access on the platform. 

The surprise burn of almost 1% of all COV tokens recently, combined with the introduction of the new COV token burn program that will see up to 50% of all fees generated on PrimeXBT put towards buying and burning COV from the open market will have a dramatic impact on the reduction of supply of COV.

These for COV token utilities are now in effect on PrimeXBT’s Covesting module, and to learn more about the details of the new token utilities, check out this link.

Source: Read Full Article