MEXC Research: Blockchain Indexing Protocol Market Analysis — Covalent (CQT)

I. Project Introduction

Similar to Graph, Covalent (CQT) is a project involving the indexing of blockchain data. Covalent provides a unified API that can be used to extract transaction data from other blockchains.

With a unified API interface, Covalent is ready-to-use and no longer needs code-based development. Currently, it supports data indexing for nine projects. It is the only project that fully indexed the entire Ethernet network and can query every contract, wallet address and transaction information.

In addition, Covalent also supports public chains such as Polkadot, Moonbeam, Polygon (Matic), Avalanche (AVAX), Binance Smart Chain BSC, and Fantom (FTM).

Technically, Covalent has the following advantages:

1. Data availability: Provides a comprehensive on-chain data index service, supports data node information queries for billions of blockchains per wallet.

2. Composability: Covalent provides API services that, like Lego building blocks, allow you to quickly and easily build scalable and data-rich applications without having to query code.

3. Multi-chain support: Currently supports nine projects and will support more in the future.

4. A simple, easy-to-use code-free solution: The Covalent API query service is multi-chain compatible and provides a code-free query solution without the need for developers to develop retrieval tools based on it.

5. Primer Transformation Engine: With Primer, developers can select only the fields they want and aggregate their data further to meet their needs. All this is done in real-time and instantly at the time of the query.

There are no complex SQL queries, no subdiagrams to develop and maintain, and no need to recruit a large number of technicians at a high cost.

6. Rich decoding data: The data is further decoded into a format that developers can use immediately.

7. Covalent networks have fully decentralized storage and computing layer with low costs and high throughput.

Covalent received early investments from Binance, Coinbase and Aleda.

II. Tokenomics

CQT’s total supply is 1 billion, of which:

10% for the seed financing round at $0.005 USD, valued at $5 million. 6-, 12-, 15-, and 18-month vesting after launch with 25% unlocked after each time period;

20% for Private Financing Round 1 at $0.013 USD, valued at $13 million. 25% is unlocked during launch; after launch, 3-, 6-, 9-month vesting with 25% unlocked after each time period;

3.042%, for Private Financing Round 2 at $0.085 USD, valuation of $85 million USD. Unlocked after 3 to 6 months (not disclosed);

3.1% for public sale. Sold on Coinlist at $0.125–0.35 USD, with a total value of $125 million to $350 million USD. The exact unlocking method was disclosed at the beginning of the section;

14.4% for the Team. 25% unlocked after one year, and then fully unlocked two years after that;

2% for the Advisors. unlocked 13 to 24 months after launch;

19.1–19.5% to be kept as reserves. 6.25% unlocked during launch; after launch, 6.25% unlocked every three months until 45 months;

8% as Staking rewards. Starts unlocking six months after launch, unlocks linearly in 48 months after launch;

20% for the ecosystem. Linearly unlocked within 48 months from launch.

The total initial issuance is 80,379,902 and is expected to be unlocked at the end of this year.

Token Unlocking Schedule

Financing Situation:

Seed financing round at $500,000 USD, Private sale 1 at $2.6 million USD, Private sale 2 at $2.589370 million USD, and public sale at $8.75 million USD. In total, $14.435837 million USD. Investment institutions that participated include Binance, Coinbase, Alameda, Hypersphere, Moonbeam, Avalanche, Near, and Elrond.

III. Project Analysis

1. CQT usage scenarios include voting governance, setting up Staking nodes, and data query costs. Staking allows for an annual interest rate of 3–20%.

2. The concept of blockchain queries is relatively new, and only GRT and CQT are relatively well-known tokens.

3. The value of blockchain queries is that, with the development of storage and NFT concepts, queries need only exist after storage.

Second, with the development of decentralized identity DID. DID is equivalent to a person’s decentralized identity. The address’s value can be determined by the transaction and balance of the address alone. The transaction records and balance of the address can be used as credentials for loan or credit to release DeFi market liquidity.

4. CQT is compared to GRT. As of April 26, 22:15, GRT had a market value of $1.851 billion USD and a price of $1.49 USD. After its Coinlist public sale, CQT has a market value of $125 million USD to $350 million USD. However, the market value of CQT is relatively high, and the second and third unlocking rounds are 12 months and 24 months, which is not very user-friendly. Therefore, only the first round is recommended.

5. CQT has obtained investment from Binance, Coinbase, Alameda, and even financing from the projects such as Moonbeam, AVAX, Near and Elrond, which fully demonstrates its strong technical capability.

6. One month and six months after the CQT’s launch, there will be two centralized unlocks. One month after launch, liquid CQT will increase from 80+ million to 282 million.