Covalent (QCT), a modular data infrastructure for artificial intelligence (AI), has seen the price of its native token fluctuate sharply in the past 24 hours.
The price of QCT fell sharply on Thursday, crashing from $0.15 to $0.10. However, QCT has rebounded and is currently trading around $0.16, as the community looks to steady itself around the AI-related crypto project considered a major network development.
Crypto analyst Michael van de Poppe said on X that Covalent is poised to bounce back after the sharp price correction.
“$CQT is doing great in their ecosystem and they proposed a change for CQT to become CXT as the next step in their journey. Price has endured a massive correction in the past period, but I think this will change over the coming period,” he noted.
— Michaël van de Poppe (@CryptoMichNL) July 11, 2024$CQT is doing great in their ecosystem and they proposed a change for CQT to become CXT as the next step in their journey.
Price has endured a massive correction in the past period, but I think this will change over the coming period. https://t.co/53OAP81EXF
Covalent migrating QCT to CXT
Covalent recently announced a governance proposal to migrate the existing token CQT to a new token CXT. 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 extend its ecosystem to encompass the growing AI and long-term data availability vision. Changing the ticker to CXT and providing for additional scope and improved liquidity are key to the transition, the project stated.
Currently, CQT fails to capture this vision, particularly in relation to a decentralized data infrastructure ecosystem.
The voting snapshot shows the proposal passed with 37 million QCT – the quorum needed was 10 million QCT. Covalent’s vote on the proposal started on July 9 and ended on July 11.
Token migration for holders, operators, and delegators is automated, with the ratio set at 1:1. Covalent announced a trading halt during the governance vote and migration, which received support from OKX, Gate.io, and Crypto.com exchanges.
Covalent recently secured $5 million in strategic financing from several venture capital firms, including RockTree Capital and CMCC Global. The blockchain firm said it would use these funds to expand its data infrastructure.