Covalent (QCT), a data infrastructure platform for artificial intelligence (AI), experienced a significant fluctuation in the price of its native token within a 24-hour period. The token price initially dropped from $0.15 to $0.10 but has since rebounded to around $0.16. This movement comes as the community rallies around a proposed transition that could have a significant impact on the project.
According to crypto analyst Michael van de Poppe, Covalent is well-positioned to recover from the recent price correction. He highlighted the project’s proposal to transition from the existing token, CQT, to a new token called CXT as a positive step forward. This change is seen as a crucial development for Covalent, signaling a new chapter for the platform and its ecosystem.
The transition from CQT to CXT is aimed at aligning Covalent’s vision with the evolving landscape of AI and long-term data availability. By rebranding the token and enhancing liquidity, the project aims to better reflect its decentralized data infrastructure ecosystem. The proposal received overwhelming support, with 37 million QCT tokens voting in favor of the transition, surpassing the required quorum of 10 million QCT.
To facilitate the token migration process, Covalent has automated the conversion for holders, operators, and delegators at a 1:1 ratio. The project also implemented a temporary trading halt during the governance vote and migration, with major exchanges like OKX, Gate.io, and Crypto.com showing their support for the initiative.
In addition to the transition proposal, Covalent recently secured $5 million in strategic financing from prominent venture capital firms such as RockTree Capital and CMCC Global. These funds are earmarked for expanding the platform’s data infrastructure capabilities, further solidifying Covalent’s position in the AI and data ecosystem.
Overall, the recent price surge of the QCT token reflects the growing optimism and support surrounding Covalent’s transition proposal. As the project moves ahead with its plans to migrate from CQT to CXT, investors and the community alike are eagerly anticipating the potential benefits and opportunities that lie ahead for Covalent and its ecosystem.
