Why Investors Should Pay Attention to COVAL
The last few weeks have been somewhat of a bloodbath in the markets, but that hasn’t stopped a few cryptocurrencies from emerging to show some potential as investments.
One such company is COVAL, which stands for Circuits of Value and was developed with the primary purpose of creating off-chain storage methods for cryptocurrencies.
What Makes COVAL Useful
Currently, the blockchain ecosystem has many coins that are limited by scale. Networks that use multi chains, such as COVAL, address this scaling issue by helping to enable off-chain transactions. The goal is to create a network where all these transactions can be easily executed in a flexibly, affordable and secure manner, but without the scalability issues that cryptocurrencies like Bitcoin have experienced in recent times.
This involves being able to transact in wallets using the sidechain assets COVAL has titled “EMBLEMS”. The practice allows for containers of value to be transacted in a unique manner that the market hasn’t seen before. EMBLEM is still under development, but the premise and development seem promising right now.
One thing that is notable that I think makes COVAL stand out is its ability to encompass a lot of other cryptocurrencies and act as a bridge for the less technologically savvy investors. The fact that you can do a lot of money management through it and still have security of Bitcoin is something they could continue to exploit in the future as they carve out their own niche.
Another reason COVAL is enticing is the bad luck they’ve had in the past. Just as they were about to run their ICO, the market dried up. As a result, the CEO, Michael Sullivan, had to get resourceful and crowdfund much of the development of the platform. This sort of resilience is commendable and shows good things about leadership.
COVAL has many other uses as well, and plans to allow the hosting of applications and other features in the course of their development. However, since the platform was released in July 2017, there haven’t been many updates sent out.
A lot of these companies live and die based on their community. COVAL started trading on Bittrex in April 2017 and hasn’t been able to get listed on any other exchanges since. The Slack community seems rather lackluster, and no white paper has been published, but that actually creates an opportunity. What we do know is the developers are working in the background to continually improve the platform.
The Investment Case
Although it is advisable to try to be conservative over the next few weeks, COVAL is one of those coins that has done pretty well considering the downturn in the rest of the market. There is a confirmed uptrend that started after hitting a low in August. The slight spike in mid-September is the only interruption to this trend, and otherwise it has continued for quite some time now.
The best way to buy COVAL is over Bittrex. It is currently trading at 0.00000048 BTC and is ranked 607 in terms of market capitalization. In a market where there are not a lot of good plays available, COVAL seems like a smart play for now.
Featured image courtesy of Shutterstock.