Covalent (QCT), a modular data infrastructure for artificial intelligence (AI), has experienced significant price fluctuations in the past 24 hours.

The price of QCT dropped sharply on Thursday, falling from $0.15 to $0.10. However, it has since rebounded and is currently trading around $0.16. The community is looking to stabilize the AI-related crypto project, which is considered a major network development.

Crypto analyst Michael van de Poppe mentioned that Covalent is likely to recover after the recent price correction. He stated,

“$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.”

Covalent Migrating QCT to CXT

Covalent recently announced a governance proposal to migrate the existing token CQT to a new token CXT. The team explained that this move signifies a new era for the platform.

The transition aims to extend the modular data infrastructure network’s ecosystem to include the growing AI and long-term data availability vision. Changing the ticker to CXT and enhancing liquidity are essential aspects of this transition, according to the project.

Currently, CQT does not fully capture this vision, especially concerning a decentralized data infrastructure ecosystem.

The voting snapshot reveals that the proposal passed with 37 million QCT, surpassing the quorum of 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 a 1:1 ratio. Covalent announced a trading halt during the governance vote and migration, which received support from OKX, Gate.io, and Crypto.com exchanges.

Strategic Financing for Expansion

Covalent recently secured $5 million in strategic financing from several venture capital firms, including RockTree Capital and CMCC Global. The blockchain firm stated it would use these funds to expand its data infrastructure.

For more updates on Covalent and other cryptocurrency news, stay tuned to Global Crypto News.

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