Covalent, a blockchain data provider yesterday announced it sold $10 million worth of its native token, CQT, in a CoinList token sale. The token will be used as the platform currency that powers interactions between users on the Covalent Network.
CQT is a network access token as well as a staking asset for validators who will earn fees for answering queries from developers.
“As a response to market demand we’ve been able to open up Covalent to the public through our CQT token. The overwhelming support from the community shows a growing understanding of the role that data analytics plays in powering the crypto, DeFi, and NFT markets.”
– Ganesh Swami, CEO & Co-Founder of Covalent
Holders of CQT can also vote on Covalent’s governance forum, which covers improvement proposals, development ideas, and suggestions for Alpha Alarm, a daily DeFi data series powered by Covalent.
The governance forum will also include suggestions for the Alchemist Ambassador program, which Covalent is allocating 1% of token supply into, equating to millions of dollars.
Applications to participate in the program are open to everyone and participants are given $1,000 to $5,000 in CQT a month to help develop Covalent’s ecosystem and engage with the community. As of today, the project has attracted over 1,300 people.
In the past six months, Covalent has closed two funding rounds totaling $5.1 million to power the launch of its decentralized data query network.
Since its most recent funding round in March, Covalent has added three new blockchains to its existing roster of eight – the most exhaustive in the industry – as well as running its flagship hackathons ‘One Million Wallets’ and ‘Dungeons and Data’.
“Consumers of blockchain data want fast and easy access to data without the pain of dealing with individual blockchain data structure idiosyncrasies. The Covalent team gets this. We’re proud to help the Covalent team expand their community of CQT holders and incentivize validators to power their network,” said Graham Jenkin, Co-founder & CEO of CoinList.