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Covalent (QCT) Rises Amid Token Transition Proposal
Covalent (QCT), a modular data infrastructure for artificial intelligence (AI), has seen the price of its native token fluctuate wildly over the past 24 hours.
QCT price took a sharp tumble on Thursday, falling from $0.15 to $0.10. However, QCT has bounced back and is currently trading around $0.16 as the community seeks to stabilize around the AI-related crypto project, which is considered a major development on the network.
Cryptocurrency analyst Michael van de Poppe he said on X that Covalent is poised to recover after the sharp price correction.
“$CQT is doing great in its ecosystem and has proposed a change for CQT to become CXT as the next step in its journey. The price has undergone a massive correction in the past period, but I think this will change in the coming period,” he noted.
$CQT is performing very well in their ecosystem and have proposed to transform CQT into CXT as the next step in their journey.
The price has undergone a massive correction in the past period, but I think the situation will change in the coming period. Italian: https://t.co/53OAP81EXF
— Michael van de Poppe (@CryptoMichNL) July 11, 2024
QCT to CXT covalent migration
Covalent recently announced a governance proposal to migrate the existing CQT token to a new CXT token. The team said in a blog post that the move marks the dawn of a new era for the platform.
The transition helps the modular data infrastructure network expand its ecosystem to embrace the growing vision of artificial intelligence and long-term data availability. Changing the ticker to CXT and providing additional scope and improved liquidity are key to the transition, the project said.
Currently, CQT fails to capture this vision, especially in relation to a decentralized data infrastructure ecosystem.
The snapshot of the vote shows that the proposal passed with 37 million QCT, while the quorum needed was 10 million QCT. Covalent’s vote on the proposal began on July 9 and ended on July 11.
Token migration for holders, operators, and delegators is automated, with a ratio set to 1:1. Covalent announced a trading halt during the governance and migration vote, which received support from exchanges OKX, Gate.io, and Crypto.com.
Covalent recently insured $5 million in strategic funding from several venture capital firms, including RockTree Capital and CMCC Global. The blockchain company said it would use the funds to expand its data infrastructure.