Is Cosmos a Good Investment?

Introduction

Cosmos (ATOM) was created in 2014 by All in Bitcs Inc., which is also known as Tendermint Inc. and is a software company based in California. Tendermint was founded by a computer scientist named Jae Kwon in 2014. Jae Kwon founded the Interchain Foundation in 2017, a Swiss non-profit foundation which hosted the ICO (Initial Coin Offering) for ATOM coin. Interchain Foundation commissioned Tendermint Inc. for the development of Cosmos mainnet which was launched in March 2019. Currently there are about 20 companies working on Cosmos network.

How it Works

Cosmos network works similar to a collection of blockchains that Instead of using many bridges to connect each one of these blockchains to another, the cosmos network uses "hubs". Cosmos hubs are Cosmos-based blockchains that act as a single point, and thousands of blockchains can connect to them for interoperability with other connected chains. For example, instead of making a bridge between Ethereum and Cardano, a bridge between Cardano and Polkadot, and a bridge between Polkadot and Ethereum, all three chains plug into a single hub. The cosmos blockchain is just one of the many hubs in the cosmos network. 

Though ATOM is limited to staking on Cosmos blockchain, ATOM is used in governing the entire Cosmos network. Jae Kwon created a new one-of-a-kind PoS (Proof of Stake) mechanism called 'Tendermint'. The aim of it is to smooth the path for the creation of new blockchains. Tendermint blockchains are considered to be some of the most secure and scalable in cryptocurrency. They can handle up to 1000 transactions per second and are able to operate even if one-third of the validator nodes are offline or trying to corrupt the network. However, Tendermint chains have limits on the number of validators they can support; The current validator limit for cosmos blockchain is 125.

There are over 30 Tendermint-based cryptocurrencies at the time of writing this post. Any Tendermint blockchain can easily interoperate via Cosmos hubs mentioned earlier. This interoperability is possible by the use of cosmos's inter blockchain communication protocol called IBC, which has been in the work since 2017 and went live on march 2021. We won't get into the exact mechanics of this protocol but you can learn more about it here. 

Financial Analysis

Atom has recently surpassed its previous ATH (All-Time High). Most of the demand for ATOM comes from Osmosis DEX, another cosmos AMM (Automated Market Maker) with around $500 million in Total Value Locked, so It's safe to say that ATOM pairings make up most of Osmosis liquidity TVL. 

ATOM's ROI (Return on Investment) over the past year was 688% which is not bad but not good either comparing to similar projects' average ROI over the same timespan, which they went up to 1288%. At the time of writing, ATOM's recent 30-day ROI is around 75%. This coin has a specific total supply which is precisely 260,906,513. It has ranked 16th in market cap, and its total market cap is around $10 billion. 

A project's popularity directly impacts its success, and this phenomenon isn't any different in cryptocurrency. Atom experienced a 60% growth in Twitter, 51% growth in Reddit, and 23% growth in telegram.

You can read our reports and charts on ROI, Market cap, Liquidity and Popularity here.

Should I Invest in Cosmos?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

To see our reports and easily compare the available investment options, check out our website.