Is ATOM Crypto a Good Investment?

17 Jan 2024 by Akanimo Francis 6 min read

Following its distinctive features and underlying technology, Cosmos Crypto (ATOM) has become a prominent contender in the crypto space. With this in mind, many investors are now pondering the question ‘is Atom Crypto is a good investment,' especially as the market for digital assets continues to grows.

TABLE OF CONTENT

Overview of Cosmos (ATOM)

ATOM Tokenomics

Cosmos (ATOM) Price History

Is Atom Crypto a Good Investment?

Is Atom crypto a Good Investment - FAQ

Overview of Cosmos (ATOM)

The Cosmos hub serves as a hub connecting several interconnected blockchain ecosystems to form the Cosmos Network. Its primary goal is to act as the "Internet of Blockchains," enabling safe and easy data exchange, transaction execution, and communication between various separate blockchains.

In general, the Cosmos Hub facilitates these activities, and more than 180 validators guard against attacks.

The Tendermint BFT engine is the portion of the network that enables developers to create blockchains without having to write the code from scratch. It’s the most crucial component of this layered blockchain design.

Source: https://medium.com/@zosegal/overview-guide-to-cosmos-atom-540f2e088ce2

Tendermint BFT is an algorithm used by the network of computers running the Cosmos software to secure the network, validate transactions, and commit blocks to the blockchain. It uses the Application Blockchain Interface protocol to establish connections with apps.

Tendermint Core is a proof-of-stake (PoS) governance mechanism that maintains synchronisation across the distributed network of computers running Cosmos Hub.

Here, participants *or "validator nodes") must first stake ATOM for them to power the blockchain and cast votes on changes. To become a validator, a node needs to be in the top 100 of nodes staking ATOM. The amount of ATOM staked determines the voting power.

To earn a portion of the block reward while assigning votes to other validators, users can delegate their tokens to other validators. Because users can easily switch between the validators they delegate ATOM to based on their voting preferences, validators are motivated to act honestly.

The Cosmos software development kit (SDK) - created by the Cosmos team - enables developers to create blockchains with the Tendermint consensus algorithm. By providing the features that are most common to all blockchains - staking, governance, tokens etc. - the SDK reduces complexity. Plugins can also be made by developers to include any extra features they desire.

ATOM Tokenomics

Atom is the native token of the cosmos ecosystem and is used to secure the Cosmos interchain hub.

The staking reward rate, or current inflation rate, is approximately 17%. The remaining funds were raised through a public fundraiser that was essentially a token sale that brought in about 16 million dollars in April of 2017. In approximate terms, 5% went towards a seed sale, 7% went towards a strategic sale, 10% went towards the foundation, and another 10% went towards the Tindermint company.

The following use cases are associated with the ATOM token:

Staking and Network Security: By staking tokens to strengthen the security of the Cosmos Hub, ATOM holders can gain value.
Transactions: The network uses ATOM for transaction fees as well. Additionally, a share of the transaction fees goes to the stakers.
Governance: The community can vote on proposals that determine the direction of the ecosystem with the ATOM token.

Cosmos (ATOM) Price History

Software developers Jae Kwon and Ethan Buchman conceptualised Cosmos in 2014, releasing its whitepaper in 2016.

Cosmos is based on the idea that every decentralised application will eventually require its blockchain. Functionality, scalability, and sovereignty will all benefit from this. In light of this, the phrase "Internet of Blockchains" was created.

For $0.1 per ATOM, Cosmos raised $17,300,000 during its initial coin offering (ICO) in April 2017. The network went live two years later, where ATOM was then introduced. Prior to the collapse of the larger cryptocurrency market in March 2020, the coin traded between $4 and $5. At that point, it sold off to lows of $1.13.

But in a few months, ATOM was back above $4, and by January 2021, it was taking off, hitting highs of $28.71. After that, there was another brief decline in price before it surged to an all-time high of $44.70 in September 2021.

Is ATOM Crypto a Good Investment?

The question ‘is Atom Crypto a good investment’ involves a consideration of several factors. Here are some key aspects to consider:

Technology and Use Case: Assess the underlying technology and the purpose of Atom Crypto. Cosmos seeks to establish an interoperable blockchain ecosystem, enabling smooth communication and transactions between various blockchains. Gaining knowledge of the project's foundations can help you assess its long-term prospects.
Market Trends: Examine the most recent developments in the cryptocurrency market. Look into recent collaborations, community involvement, and developments related to Atom Crypto. Positive momentum in these fields may be a sign of expanding attention and possible future benefits.
Team and Development: Learn about Atom Crypto's team members and accomplishments. A more capable and seasoned team is frequently linked to a greater chance of project success. Furthermore, continual protocol updates and development are essential to the project's viability.
Risk Tolerance: Because of the volatility of the market, investing in cryptocurrencies carries some risk. Whether you choose to invest in Atom Crypto or any other digital asset, take into account your time horizon, investment goals, and risk tolerance.
Regulatory Environment: Keep yourself updated on the laws and regulations about cryptocurrencies. Regulations can have a big influence on how much digital assets are adopted and valued.

Is ATOM Crypto a Good Investment? - FAQ

Does ATOM crypto have a future?

According to Changelly, the Cosmos price forecast indicates that the price of ATOM will decline by 1.36% and reach a minimum of January 14, 2024. The Fear & Greed Index is showing a score of 71 (Greed), indicating a Neutral Bullish 61% market sentiment on Cosmos, according to technical indicators.

Is Cosmos a good investment today?

Both short and long-term potential exists for the project. However, the ongoing legal battles between the SEC and Coinbase and Binance, in which the SEC declared ATOM to be a security, may limit its current short-term potential.

What is ATOM crypto used for?

Staking ATOM increases network security. The ATOM token is used on the Cosmos Network to pay transaction fees. The Cosmos Hub puts forth proposals, and ATOM holders can vote on them.