What occurred
Cosmos (CRYPTO:ATOM) lately introduced the launch of a brand new blockchain community, and its ATOM cryptocurrency token is climbing because of this. ATOM was up roughly 6.1% over the earlier 24 hours as of 4:45 p.m. EDT.
The Cosmos staff introduced on Oct. 19 that it could be launching a brand new blockchain dubbed Sagan. The brand new blockchain community, which is called after astronomer Carl Sagan, shall be used for software testing and experimentation.
Picture supply: Getty Pictures.
So what
Cosmos did not share a lot details about Sagan. The brand new blockchain community was teased on the finish of a convention held by the staff, and traders and builders are nonetheless largely at midnight in regards to the specifics. Whereas not a lot is understood in regards to the upcoming blockchain, its announcement factors to a brand new use case for Cosmos’ ATOM token.
Cosmos’ present core service revolves round permitting customers and builders to trade and combine information throughout decentralized blockchains, and the ATOM token is to pay the price of these purposes and actions and keep the community. Sagan’s debut teaser instructed that the staff’s new blockchain shall be used as a testing floor for options and purposes, and ATOM might play an analogous function on the brand new community.
Now what
The crypto market has boomed this 12 months amid rising curiosity in blockchain-based purposes and providers. Rising issues about inflation and volatility in equities markets have additionally prompted funding {dollars} to pour into the cryptocurrency area, and Cosmos and its ATOM token have benefited from this number of tailwinds.
If blockchain purposes proceed to achieve vital traction, Cosmos’ skill to let customers share information throughout networks and check purposes might assist energy extra demand for the ATOM token. Nonetheless, take into account that the crypto market tends to be risky, and ATOM stays a high-risk funding.
This text represents the opinion of the author, who could disagree with the “official” advice place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even certainly one of our personal — helps us all assume critically about investing and make selections that assist us turn out to be smarter, happier, and richer.
