CoVEX is hoping to lower the barrier of entry into the crypto-world. They aim to provide an exchange platform that caters to not only seasoned traders, but first time investors as well. For many, entry into the crypto world can appear daunting. It can be scary, and investors may be full of uncertainty. The platform that CoVEX intends to create will offer services to alleviate apprehension in novice investors. A few of these features are social trading, margin trading, and multiple payment gateways. In addition to the services offered, CoVEX looks to fund their venture, and incentivize users through the implementation of a native token which will utilize a reward structure.
By utilizing social trading, CoVEX is looking to create a community within its platform. They will be providing, not only, traditional tools used and needed by day traders, but the ability to communicate with other traders as well. There will be a reputation based system in place, where successful traders can share their tactics and trading activity with others. These successful individuals will be identified by past performances, being evaluated by a machine learning algorithm. These traders are incentivized to share their activity by being rewarded with the CoVEX token. By implementing social trading, novices are able to take part in a burgeoning market without missing opportunities. It affords them the ability to watch, learn, and profit at the same time.
To be developed in time, CoVEX will also implement features such as margin trading. For those that can tolerate higher risk, but do not have liquid capital to facilitate trades, margin trading may be the answer. It will allow traders to essentially borrow tokens/coins from others to perform their own trades. The borrowers will have collateral backing, and repay the tokens/coins plus interest to the lender upon completion of the trade. Margin trading can provide the opportunity for confident investors to increase their holdings dramatically if successful. This is a service only provided on few exchanges.
To achieve these lofty goals, the workings of the platform will be underpinned by a native token built on the Ethereum protocol. Adhering to ERC-223 standards, the CoVEX token will provide multiple benefits to users of the platform. Those that hold enough of the token will see discounted rates on transaction fees. In addition, successful traders that provide their activity for social trading purposes will be rewarded with the native token by those that copy their trades.
This article only touches the surface of what CoVEX has to offer. With further plans for supporting ICO underwriting services and more, they really are striving to become an all-in-one trading platform. For full details on the workings of their planned platform make sure to read their whitepaper.