After a plan to switch to a new native token was made public the other day, Covalent (QCT) has been very volatile over the past day. On Thursday, the price of QCT dropped from $0.15 to $0.10. It has since gone back up and is now trading around $0.16.
The community is coming together behind Covalent, a flexible data infrastructure provider for artificial intelligence (AI), since significant changes are planned for the network.Crypto analyst Michael van de Poppe says that the recent drop is a good time to buy QCT because he thinks that the price will go back up after the planned transition.
Covalent’s QCT proposes token transition plan
Covalent has announced a governance plan to switch from its current token, CQT, to a new token, CXT. This is a major turning point for the future of the platform.
The change is meant to strengthen Covalent’s environment, which is in line with its goal to support AI and make sure that data will be available for a long time. Changing the name of the token to CXT is seen as a smart move to make it more useful and easy to buy and sell, which is important for its goals of building a decentralized data infrastructure.
The governance vote ended on July 11 with 37 million QCT tokens cast in favor, which was a lot more than the 10 million QCT needed for a quorum. Major exchanges like OKX, Gate.io, and Crypto.com backed Covalent’s handling of the token migration process, which promises a 1:1 ratio for holders, operators, and delegators. This led to a brief stop in trading.
Covalent just got $5 million in funding from investors such as RockTree Capital and CMCC Global. The company plans to use the funds to improve its data infrastructure and strengthen its place in the blockchain space.
