Blog Banner: CQT Circulating Supply and Market Cap - Jan '22 update

CQT Circulating Supply and Market Cap - Jan '22 update

Disclaimer: This blog post describes methodologies for calculating CQT supply and market capitalization on third-party websites. We are not responsible for any CQT metrics reported by these or other websites. We encourage you to please read this post, our CQT token economics page, and do your own research on Etherscan!

TL;DR: Covalent is providing additional granularity on circulating supply. There is no change to CQT supply reported on Covalent's website; nevertheless, two third-party websites, Coingecko and CoinMarketCap have updated the circulating supply of CQT and as a result the market cap that they calculate as well.

1. Background

For those observing CQT market cap on Coingecko and CoinMarketCap, there is a substantial increase in CQT market cap between 14 Jan and 19 Jan, 2022, depending on the website. This blog post discusses the increases in market capitalization as reported on these platforms as well as provides more granular information on current CQT supply, historic CQT supply, and future supply.

Coingecko and CoinMarketCap report market cap and circulating indicators on various tokens they track including CQT.

The methodology they use to calculate Market Cap is Price * Circulating Supply. Each website has a methodology for calculating and/or reporting Circulating Supply which is elaborated on below. Each of them calculates and/or reports Price based on information from centralized and decentralized exchanges and AMMs which have no relationship with Covalent.

Covalent reports circulating supply on its webpage; however, we do not track or report CQT prices on our webpage.

2. Coingecko

Total Supply of CQT minus Locked Tokens (Covalent Treasury Wallets * 3)

In more detail:

  • Total: 1,000,000,000
  • Vesting (0xbf7a: | Etherscan ) - 18,765,384
  • Private Sale Participants, Team, and Advisors (0xa39b: | Etherscan) - 317,201,015
  • Reserve + Ecosystem Reserve + Staking Rewards (0x220b: | Etherscan) - 409,190,611
  • Est. Circulating Supply: 254,842,989

On Coingecko there is an increase in CQT circulating supply - and hence CQT market cap - on January 14, 2022. This is because their internal system for calculating CQT has a control which is set to break a link if the linked wallet moves more than 5% of supply (50M CQT). This issue is not documented and the UI flagging the broken link was also recently updated, not necessarily when the link was broken by large distributions to private sale participants in September 2021 and December 2021.

3. CoinMarketCap

On CoinMarketCap there is an increase in CQT circulating supply - and hence CQT market cap - on January 19, 2022. CoinMarketCap did not have a dynamic system to calculate CQT circulating supply set up till this point, rather was reporting an outdated and static CQT supply.

To our best knowledge, CoinMarketCap currently uses the same methodology as Coingecko to calculate circulating supply of CQT, which they adopted on Jan 19, 2022, leading to the spike in market cap that they report.

4. Additional Information on CQT Supply

Covalent has reported its supply on its webpage. We are proud that we maintain a high degree of transparency with regards to our token economics and in that spirit we provide the following spreadsheet which adds additional granularity and is the source material behind the charts on our website.

Should you have any additional questions about CQT Supply please do not hesitate to reach out to our community managers, social media administrators, and CFO.