Update on CXT/CQT Migration

Updated on Jul-19 2024

• Kraken progress

• CQT holders on Moonbeam

• Scammers warning

It’s time for an update on the CXT migration status and to consolidate all facts together in one place. As a background: the community opted to pick CXT as the new network token to replace CQT. After an overwhelming response in support of the migration, the new token was deployed and the migration process is well underway.

Existing CQT Token Holders fall into five buckets at the snapshot block height of 20279064. After the snapshot, CXT has taken over and CQT is deprecated and has no value. We made sure that major exchanges halted deposits/withdrawals and trading with CQT beforehand to protect token holders and their funds.

1. [COMPLETE] CQT on self-hosted wallets like Ledger, Metamask, Rabby, Rainbow etc

   • These users were airdropped CXT with a 1:1 ratio at the snapshot time

   • Users who acquire CQT after the snapshot time will not get CXT

2. [COMPLETE] CQT on the Covalent Staking contracts

   • Migration is automatic and going forward new staking positions, redeeming rewards and other actions will require CXT and not CQT.

3. [ONGOING] CQT on existing CEXes - can be broken down into two camps:

   • Exchanges supporting the migration - so far OKX, Kucoin, Gate, Crypto.com, Ascendex, CoinList. and MEXC have publicly announced their support for the new token. As of 4pm PT Jul 15, OKX is live with CXT with the other exchanges going live in the next few days. The migration is automatic and there is no action required by the user.

     Update on Kraken - Despite initially announcing that they are not supporting the migration, they have now stated that they will be supporting the migration of CXT with a snapshot. More details to follow.

4. [ONGOING] CQT on Moonbeam bridged through Wormhole

   • Recovery Flow Instructions for CQT to CXT Migration

     Recovery Flow 1: If the CQT was on Moonbeam prior to the snapshot (Ethereum block height 20279064):

     • On Moonbeam: Transfer CQT to: 0xB9B9e42303e08100b3909B4f1Ce116AeACDBeFEd

     • Airdrop: Equivalent CXT will be airdropped to the same address as the transferring wallet on Ethereum.

     Recovery Flow 2: If the CQT was on Moonbeam prior to the snapshot and has been bridged from Moonbeam to Ethereum after the snapshot:

     • After Bridging: The CQT should remain in the same wallet and must not have moved.

     • Airdrop: Equivalent CXT will be airdropped to the same address on Ethereum.

     Note: If you have your CQT on Moonbeam and have NOT bridged back to Ethereum, please follow Recovery Flow 1.

     There is no requirement to contact Covalent. Throughout the months of July and August, Covalent will periodically check 0xB9B9e42303e08100b3909B4f1Ce116AeACDBeFEd on Moonbeam and the Wormhole bridge and transfer the CXT.

5. [PENDING] CQT deposited into Uniswap/Sushiswap as a liquidity provider

   • CQT holders will be airdropped the exact amount of CXT 1:1 as of the snapshot time. This is expected to happen in the next few days.

Scammers Warning ⚠️

Please be vigilant and careful with scammers. Here are some common tactics they are using:

1. Impersonation: Scammers are pretending to be our moderators and direct messaging (DMing) users, asking for personal information.

2. Fake Support Pages: There are support pages on Twitter claiming to be Covalent. Please note, we DO NOT have a support page on Twitter.

3. False Migration Assistance: Scammers are claiming to help you complete the migration to get CXT if you transfer your CQT to them.

4. Fake Telegram Groups: There is a fake Telegram group claiming to help with token migration.

Frequently Asked Questions

Why can't I see CXT on my Ledger/Metamask and other self-hosted wallets?

• If you cannot see CXT in your Ledger, Metamask, or other self-hosted wallets, please add CXT as a custom token. Use the contract address 0x7ABc8A5768E6bE61A6c693a6e4EAcb5B60602C4D with 18 decimals. Additionally, you can view your tokens on Etherscan.

Why is my CXT showing up with a price of $0.00?

• CXT is just starting to get listed on major exchanges and the price should show up in the next 24-48 hours. You can always see the spot price on GeckoTerminal.

Why is my CQT dumping?

• CQT is now deprecated and has no value. It might have residual value and liquidity on some trading venues, but you should not buy CQT.

Why this specific migration path?

We chose the airdrop method for distributing the new tokens over a swap mechanism with a portal for several key reasons:

1. Simpler UX: No action is required from token holders, making the process more user-friendly.

2. Security: We successfully forked out the Nomad exploiter, recovering around 4% of the supply. After the Nomad hack in August 2022, Covalent compensated all victims from the treasury, so this recovered supply returns to the treasury.

3. Legal and Tax Implications: This method avoids potential legal and tax complications for token holders.

What should I do with the CQT in my wallet?

• CQT has no value. You are welcome to do anything you wish with the residual value.

Is there a swap portal for CXT <-> CQT

• There is no swap portal and any emails or messages you receive around this is a SCAM.