What is Cosmos (ATOM)? And how did it reach #15 on CMC so quickly?

02 May, 2019 | Updated: 02 May, 2019
by Will Heasman
Analysis
What is Cosmos (ATOM)? And how did it reach #15 on CMC so quickly?

Cosmos (ATOM) appears to have come from nowhere, suddenly emerging and swopping over the heads of the majority of the top 100 cryptocurrencies by market cap and sitting fairly pretty in #15 spot, but where did this project come from? And how has it managed to rise so quickly?

Contrary to what you may assume, the Cosmos Network has been around for years, quietly developing behind the scenes since 2017. Their initial coin offering took place in April of the same year, in which the project raised $16 million and the ATOM token was birthed.

Since that time the token – which was worth $0.10 at ICO price – has skyrocketed by 4400% currently citing a price of $4.45.

ATOM/USDT Chart provided by Tradingview

What is Cosmos (ATOM)?

The project was described by Forbes as a “world wide web for blockchains.” Essentially the network acts as an interoperable platform from developers upon which tokens from several different chains can be utilized on another.

Cosmos also aims to solve the on issue plaguing most blockchains: Scalability. By employing proof-of-stake powered by a Byzantine-fault-tolerant consensus engine known as Tendermint, Cosmos overcomes this obstacle.

Simply explained, Tendermint is an open source engine which provides both a unique solution to the Byzantine Generals Problem and simultaneously allows developers (using a multitude of programing language) to build directly onto an application layer without fiddling with underlying cryptography.

Zaki Manian, director of the company behind Cosmos, spoke to CoinDesk about the project shortly after the launch of its blockchain in March:

"We want to take the blockchain development cycle from idea to implementation down from years to months. This is how we’re trying to transform the blockchain space...Out of all these building blocks, (you’ll be able to compose) an entire...open system of finance that operates to scale and can be composed of individual, specialized chains that do different things".  

Why is it Rising?

Cosmos has kept its head down, continuing to build and develop under wraps without drawing too much attention to itself, however, the spotlight, it seems, came to Cosmos…

First came Kraken.

ATOM landed one of its first major listings back in April, when the Kraken exchange provided the project with a coveted listing, thrusting it into the public sphere.

The Binance effect.

However, it wasn’t until Binance caught wind of Cosmos that the project truly flew out of the stratosphere (pun intended).

Notable this wasn’t any old listing, this one was highlighted by Binance Boss, Changpeng “CZ” Zhao himself, who noted the projects apparently apathy when it came to exchanging listings, and further praised the project for it’s “good tech.”

Moreover, the listing appeared to be free with the binance website stating that the listing fee was 0 BNB, marking Cosmos as a project which was curated for listing by Binance itself.

Since that time, Cosmos has managed to breach into the top 20 currently residing at #15 in the top cryptocurrencies by market capitalization.

This nascent rise has many suddenly interested in the project, causing a cryptocurrency SubReddit to question why the rank abruptly changed.  

The consensus appears to be attributed to the aforementioned listings on both Kraken and Binance, and the traceability that affords Coin market cap (CMC) who started calculating Cosmos’ market cap fairly recently:

Have you noticed Cosmos' rise? do you think this cryptocurrency is here to stay? let us know in the comments! 

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