Covesting Prepares for Public Release: Market Insights and Information About the Platform
Covesting , the fully regulated cryptocurrency exchange that offers clients a suite of unprecedented features, will be opening its platform to the public in the coming weeks. Now, is the perfect chance for investors to consider the issues plaguing the markets, and how compliant exchanges, like Covesting, could fix many of these problems.
2018 has been a turbulent year for the cryptocurrency markets, with the overall market cap peaking at around $800 billion in early January before crashing to its current levels of around $200 billion. During this crash, Bitcoin has fallen from its all-time high of nearly $20,000 to its current price of $6,300, and many alt-coins have dropped 90% or more from their all-time highs.
Covesting’s CEO, Dmitrij Pruglo, spoke about the current state of the markets, saying:
“The 2018 cryptocurrency market crash was not surprising, and anyone could see that the hype surrounding hundreds of useless tokens was surging to unsustainable levels. The crypto markets also lacked transparency, and often there is no logic, or practical use-cases, behind many of the token sales conducted over the past 12 months.”
Pruglo’s sentiment regarding the obviousness of the 2018 market crash is shared by many industry experts, who noted that tremendous price rises, like those that occurred in the crypto markets in late 2017, are almost always followed by an equal, or greater, price drop, which is the exact definition of a bubble.
In addition to seeing the unsustainability of 100%+ daily price spikes, many investors began to recognize the uselessness of many of the cryptocurrency tokens surging in prices.
More recently, the cryptocurrency industry saw first hand the effects of increasing regulations, as the United States’ Department of Justice (DoJ) recently charged a man for conducting unlicensed Bitcoin sales via LocalBitcoins.
“After fraudulent ICOs and useless token projects scammed investors, regulators began rushing into the cryptocurrency markets. Many project founders didn’t even bother to organize a corporate or legal structure, and most of these teams didn’t have any experience in whatever technology they were trying to develop,” Dmitrij explained further.
Covesting prides themselves as being fully compliant with global regulatory authorities and is also ushering in a new era of transparency for the cryptocurrency markets. Mr. Pruglo discussed Covesting’s effort to comply with regulations, saying that:
“At Covesting, our team first began by developing a legal structure, thinking deeply about corporate policies, governance, and developing a clear plan instead of the typical ‘dreams and promises map’ that other projects offer. The Covesting team knew that regulations would be coming and that the cryptocurrency bubble would burst, leading the industry to mature by implementing the necessary enforcements, policies, rules and guidelines. We have always been one step ahead of our competitors and were thinking about regulations and market cycles even when nobody else was.”
It is clear that as the cryptocurrency market continues its maturation process, investors and project founders must recognize that blockchain technology is needed for practical use cases, not just for hype and quick profits. As scams become more frequently exposed and global regulations begin to unfold, it is important that cryptocurrency exchanges begin taking actions to prevent scams and to protect investors.
Covesting recently received their DLT License from the GFSC, making it one of the first companies in the world to receive this type of license.
Investors can mitigate many of the risks entailed by investing is nascent markets, like cryptocurrency, by utilizing platforms like Covesting that ensure the safety of investor’s funds by being compliant with global regulations, and alleviate investor’s nightmares by offering them trading tools that allow them to be profitable even during bear markets.
“We are building Covesting with a goal of helping people not only during positive market trends, but also during turbulent times,” Pruglo added.