Token Description & Project Background

Covalent is a blockchain-based data infrastructure that works to aggregate data from leading layer-1 and layer-2 networks like Ethereum, BSC Smart Chain and Polygon.

The platform’s native token is CQT. It’s used to facilitate governance, provide access to Covalent’s unified API and reward various actors for operating on the network. CQT can also be staked on the protocol for an annual yield.

Developers can use Covalent to build multi-chain applications such as crypto wallets, NFT galleries, and investor dashboard tools utilizing data from 30+ blockchains.  

The CQT token launched in April 2021.

The project was founded by Ganesh Swami (CEO) and Levi Aul (CTO) in 2017. Both Swami and Aul are former data engineers. Swami, a physicist, previously developed algorithms for cancer drug research, while Aul first gained recognition as the founder of Canadian Bitcoin exchange Bex.io. 

Risks of CQT

Like an investment in other crypto assets, there are some general risks to investing in CQT. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in CQT is subject to the following specific risks:

• Any potential success associated with CQT depends on Covalent’s rate of adoption by users, including DeFi protocols and independent data providers.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with CQT. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The CQT community and team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of CQT have no recourse to the CQT community, or Uphold if CQT declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing CQT on the Uphold Platform, Uphold performed due diligence on CQT and determined that CQT is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of CQT, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of CQT.
• Any marketing materials put forward by the CQT social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with CQT, including any code defects, security breaches and other threats concerning CQT and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with CQT, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of CQT. 

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on June 14, 2023.