Covesting Launch Date Announcement and Intermediary Business Update
Tags: Covesting

As we move closer and closer to the final, much-anticipated launch of the Covesting fund management module, we wanted to pause for a moment to reflect on what a difficult and demanding journey it has been to reach this achievement and milestone.

The last year has been especially challenging due to the strict adherence to cost optimization in the face of radically changing industry demand.

In addition, as we are reaching the finish line, we also wanted to provide transparency into our product development lifecycle and give a detailed overview of the overall business as part of this update.

Corporate Updates and Regulatory License

As part of our cost optimization and budget adherence, we made the decision to put our license with the Estonian Financial Supervision and Resolution Authority on hold.

We requested that the Estonian regulator liquidate the company along with its license. This decision was made in early 2020, due to the fact that the license went unused since 2018.

However, this doesn’t change the fact that Covesting is a regulated financial entity. We continue to operate under the DLT license issued by the Gibraltar Financial Services Commission.

The Estonian license was simply a backup “plan B” in case the DLT license from Gibraltar wasn’t issued. But once we received the DLT license, it made little sense to continue to expend costs and have a required physical presence just to continue to receive a license under the Estonian jurisdiction.

The DLT license allows Covesting to manage both the B2C and B2B sides of the business strategy and doesn’t limit us from delivering the products and services we set out to bring to clients.

We are in regular, close communication with the GFSC, providing monthly updates on development progress and B2B negotiations — which have become a top priority for the business.

All aspects of the company’s financial status are fully disclosed to the GFSC and are in compliance with all regulatory capital standards and guidelines, in order to fully maintain the DLT license in good standing.

Covesting Product Overview

With a launch date now on the horizon, we wanted to take a look back at all that the hard-working teams here at Covesting have accomplished over the last two years of development, and compare them with we had originally planned.

Here are the four pillars of the original Covesting infrastructure:

• Crypto Intelligence Portal

• Liquidity Aggregation

• Covesting Digital Asset Exchange

• Copy Trading Platform

Here is the end result of each product development cycle, and the version of the product we have ultimately delivered:

Crypto Intelligence Portal

Status: Released

Covesting had a vision of launching an all-inclusive information resource designed especially just for the cryptocurrency industry.

The idea was to educate the crypto community in order to help them make informed decisions about the investments and trades they make.

As was outlined in the original Covesting white paper, the Crypto Intelligence Portal would include:

• An integrated news feed from top industry resources.

• Original blog posts and articles from reputable traders, analysts, and journalists from throughout the crypto space.

• Detailed trade ideas with technical analysis and trading strategies from the best professional traders across the market.

• A robust Crypto Academy with A-to-Z education, video tutorials, and much more.

• A complete glossary for cryptocurrency-related terminology.

• A collection of the most important and comprehensive cryptocurrency resource links for additional education.

• And a thriving, active community where investors and traders can interact and discuss the latest market trends, developments, and trading ideas.

While we still firmly believe that the Crypto Intelligence Portal hosts a wealth of useful information, we have decided to cease its operations due to the low demand for this type of information.

The Crypto Intelligence Portal remains active via https://ci.covesting.io/ and still includes the Crypto Academy, complete with lessons and video tutorials that educate traders with helpful how-tos.

Liquidity Aggregation

Status: Released

Liquidity aggregation was among the first engines that the Covesting team deployed, helping the Covesting exchange to have a full, liquid order book from the moment it launched.

While other platforms struggled to build trading volumes, Covesting’s order books were deep and ready for instant order execution dating all the way back to the platform’s beta release in early 2018.

Liquidity aggregation still powers the Covesting trading terminal today, offering some of the best order book depth and fastest order execution across the cryptocurrency market.

Covesting Digital Asset Exchange

Status: Released

The Covesting digital asset exchange was released as a beta starting on April 1, 2018, and is currently in operation.

The platform and infrastructure are custom built from the ground up, rather than relying on limited, out-of-the-box solutions.

However, although choosing this development method makes for the best possible product, it does create a time consuming and resource-heavy task to see through to completion.

Building a cryptocurrency exchange from scratch, including a KYC verification system, wallet with multi-currency support, and a reliable trading engine, takes time, money, and expertise.

Furthermore, new users can continue to sign up to the platform, offering them a variety of ways to trade. Covesting has the highest level of security, and the platform has never been compromised or suffered an intrusion of any kind.

We also provide safe, secure custody of assets, and meet all regulatory guidelines to ensure the safest platform possible, free from market manipulation, and more.

In 2017, launching a cryptocurrency exchange was a brilliant idea, but in 2018 alone over 500 new exchanges emerged, all competing for the same set of market participants who remained following the early 2018 crypto market collapse.

Early 2018 brought extreme losses to those that had been lured to the market in late 2017 following much hype and FOMO.

Now, even two years later, the market has only restored to just 1/7th the total active crypto enthusiasts that once filled the market at its peak interest level. Even more importantly, the trend of “crypto involvement” that sparked the surge of development of crypto projects, has fallen flat and isn’t growing.

Even search trends on Google indicate that interest remains relatively low for crypto assets like Bitcoin and altcoins.

Because of this, there’s no new demand for cryptocurrency exchange or news and analysis websites, regardless of if the vendor is fully licensed or not, or how good your marketing is.

Only a few large players were able to establish their positions as leaders in the space, in terms of both trading platforms and information outlets. These large players are more than enough to serve the demand in the crypto market, making it difficult for others to capture a piece of the share.

We plan to continue to maintain the Covesting exchange and everything that entails, including the infrastructure, nodes, wallets, treasury, trading engine, and more. However, we have allocated all remaining development resources towards finalizing the Covesting copy trading module.

There is little competition in fund management modules in the crypto market, making the Covesting fund management module on PrimeXBT a unique value proposition that stands out from the rest of the market.

Further strengthening the product at launch, the Covesting fund management module will launch first on PrimeXBT to an already established user base of active traders who will take advantage of the platform.

By sticking to a B2B strategy for launching Covesting, we ensure that any partners we launch on have a built-in user base to tap into, and are growing fast with strong market share.

Our first partnership with PrimeXBT will be a major milestone, and we are extremely thrilled with the synergy between the two platforms in coming together to build an amazing product for the crypto market.

Today, we are happy to reveal the official beta release date.

Covesting Fund Management Module

Status: Beta launching on April 1, 2020

Two years ago, on April 1, 2018, Covesting launched the first-ever beta version of the cryptocurrency exchange to consumers eager to try it.

This year, on April 1, 2020, we will be releasing the Covesting module beta on the PrimeXBT trading platform for the first time, introducing to the world an innovative new trading experience.

The beta version will at first be limited to only a select number of users to minimize the impact of any last-minute bugs or issues that may arise, and allow us to further stress test the platform ahead of a larger rollout.

The module itself will be released in multiple phases, with the COV token and its utility being integrated during the second phase.

As the launch date gets closer, we will issue another blog post fully dedicated to the beta launch to provide more details, outline the next steps, highlight key features, and reveal the prize we’re offering to the most active beta tester!

Covesting: Adapted to Reality

To operate a successful company and a profitable business, you always must be ready to adapt and evolve. Oftentimes, the best-laid plans and ideas that were relevant previously, may not come together due to how rapidly certain industries change — and no more so than the crypto industry.

You sometimes simply have to face the fact that you cannot predict the evolution of industries years in advance, and must pivot strategy as regulations change, ideas emerge, and new services are released.

With the crypto market unable to keep up the hype and hysteria from 2017, the products designed to meet that demand had to be revised to adopt the changing market. Those that were able to do so successfully, will be at the forefront of the future of this industry.

Today, we are focused on releasing the Covesting fund management module on one of the most innovative trading platforms in the industry today: PrimeXBT.

Tomorrow, regulation may change, and everything we know about the crypto market may change with it. We, like any other successful business, must be ready to accept the new reality, adapt, refocus, and remain relevant, regardless of whatever the market brings us.

Through our steadfast approach and constant focus, we are confident in our latest evolution, and where we will evolve from here.

Stay tuned for additional updates from Covesting, and more on the Covesting fund management beta launch in the coming weeks.

Yours,

Covesting Team