ICO Status: In-progress
Covesting is (another!) copy-trading platform that enables people to follow traders and copy the cryptocurrency trades they make.
Investors or ‘Asset Managers’ as they will be called, conduct their trading activity in the normal way but publically list all actions on their Covesting profile. Other users (called Investors – ugh, such misleading terms! Let’s call them ‘sheep’) are able to assess the Trader’s profile, tradiing strategy, and trading history to determine if this is an Asset Manager they wish to follow.
Investors are able to follow up to 20 strategies. If a trader they are following places a trade, then the exact same trade is executed on the investors account automatically. If the trade is successful, then the Investor receives their initial capital plus 72% of the profit. !8% of the Investor’s profit is given to the Asset Manager, with the remaining 10% being withheld by Covesting as a platform fee.
In essence therefore, the Covesting propostion seems extremely similar to the ‘AutoFIT’ feature in development with Follow Coin.
If you’ve read my review of Follow Coin then you’ll already know I can’t help but take a dim view of copy-trading given the volatility of the market, the relatvie ‘newness’ of it, and therefore the doubt I have about anyone calling themselves an ‘expert’ at this stage. Sure, there are people who are significantly more educated about blockchain and more experienced with the practises associated with cryptocurrency investing and trading, but to say that these people are ‘experts worthy of blindly following with your real world money’ feels a little crazy.
Still, there are tonnes of people who are bound to try it. After all, the entire Financial Advice industry is built upon the lack of importance individuals place on understanding and owning their own financial decisions! Because of this, Covesting has real world utility and is likely to attract a large user-base.
Cryptocurrency trading and investing is in its infancy as an industry; but that is likely to change at an exponential rate in the coming months a years. The hype we’re experiencing at the moment is reminiscent of the dot-com boom – and everyone who can remember it, remembers all too well how they ‘missed out’ on hyper-returns on investment (everyone forgets that people lost their fortunes also!). So the market is growing, and growing fast.
COV is the token which will fuel all transactions across the Covesting platform. Demand for COVs will increase comensurate with the increase in transactions being made. This demand is the primary lever influencing COV value.
Covesting have amassed a formidable team who all appear to be dedicated to the project with no distractions from other employment. As a group, they have considerable experience in trading, blockchain, software development, and business management. Based on this, there is no reason to suspect that this team will have much trouble putting the ICO funds to good use and generating success.
The Covesting development roadmap looks rapid, with a prototype due for release in November, with copy-trading adding in December ahead of exchange listing in January and beta-platform release in February. That gives ICO investors a period of 4 months before they are likely to see any movement in the value of their COV tokens.
Covesting aims to raise up to 100,000 ETH from the ICO sale of 15 milion COV tokens. The hugely disappointing part of their entire pitch though is the promises they make on their website about the potential rewards for ICO participation. Now, this might be an ‘English as a second language’ problem, but check this out from their website:
“All early contributors will benefit from almost guaranteed profits related to substantial discounts during both the Pre-ICO and ICO. As soon as the Covesting platform is launched – COV tokens will be available for purchase at much higher price. 1ETH = 100 COV. If you take part in the Pre-ICO now, you may easily increase your capital at least three times, with a very probable increase to 30 times as soon as COV starts trading on the exchange and first copy-trades start generating commissions in the Asset Contract.”
Wow. Never before have I seen an ICO give such explicit expectations to ICO investors about what their tokens will be worth following the ICO sale! And to use phrases like ‘…almost guaranteed profits’ is highly irregular and ill-advised. ‘…may easily increase your capital at least three times’.
Yep, that’s where my last little bit of interest in Covesting died.
If you’ve read my review of the Follow Coin ICO, then you’ll already know I can’t help but take a dim view of copy-trading platforms, preferring instead that people would take the time needed to learn and educate themselves in order to own their own financial decisions. Having said that, it is likely that Covesting will attract a large number of willing participants – if not during the ICO due to their utterly scandalous ROI predictions, then almost certainly once the copy-trading platfrom is alive in beta.
If I had to choose between Covesting or Follow Coin at the ICO stage, then I would probably choose Follow Coin. My reasoning is two-fold:
Be the first to leave a review.
Enter your best email address below and we'll ping you a message when new ICO reviews are published here on decrptd.com:
Send this to a friend