© Reuters. QUICK skyrockets 15% after community adopts epic new plan for token splitting
On Thursday, Polygon’s largest decentralized exchange, QuickSwap, voted in favor of a token split to make QUICK — DEX’s native governance and utility token — more attractive. Today, QUICK token holders began the second part of their governance vote to determine whether to redenominate QUICK at a ratio of 1:100 or 1:1000. Within hours of the start of voting, and at the time of this writing, the 1:1000 ratio had taken an early lead with 76.96% of voters in favor of the larger split.
This token split will bring QUICK’s price more in line with the price of other DEX tokens, making the asset more attractive to investors who are impacted by unit bias. As a member of DEX’s management team explains, “QUICK’s unit price is significantly higher than other DEX tokens, while its market capitalization pales in comparison.”
QUICK’s meager market cap of $69.43 million (as of March 1, 2022) does not accurately reflect the adoption or usefulness of the token. When comparing QUICK to other DEX tokens like UNI, SUSHI, OSMO, and CAKE, the gap becomes very clear. QUICK’s low market capitalization may be related to its shortage.
Despite compelling evidence suggesting this was the case, some QUICK holders still opposed the split, claiming that redenomination of the asset would not improve the token’s poor price performance. In just over 24 hours since the decision to part ways was made final, naysayers appear to have been wrong. The price of QUICK is up more than 6% in 24 hours and more than 15% in 7 days. This is the largest percentage gain for the asset since December 2021, when it rapidly rose more than 56% in a single day after StrongNode announced the launch of a syrup pool on QuickSwap where holders could wager QUICK to earn SNEs.
With a market capitalization of $59.39 million and a 24-hour trading volume of $11.21 million (according to crypto.com), QUICK outperformed the market for the first time in a long time. The sharp rise in the asset began on March 13, about a day after the DEX governance vote began. While it’s still possible that this recent uptrend is unrelated to the split decision, the timing of this rise aligns with stock market trends. When Tesla (NASDAQ:) announced a 5:1 stock split in August 2020, shares rose 81% before the split and another 42% in the following months.
If Tesla is any indicator of what might happen next for QUICK, the sky’s the limit. Low market capitalization assets like those in QUICK can appreciate in moments with large purchases in the market. Of course, there’s no guarantee QUICK will perform like Tesla, but time will tell.
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