n 2014, Cosmos (ATOM) was created by two computer scientists, they are both doxxed.
They’re called Jae Kwon & Ethan Buchman (@jaekwon & @buchmanster on X).
ATOM raised $18M in 2017 and in three separate token sales. Later in 2019, the Cosmos blockchain launched its mainnet.
Cosmos (ATOM) is a ‘Proof-of-Stake’ chain and currency that powers a whole ecosystem of blockchains. They aim to create an “Internet of blockchains. All the blockchains on their network can communicate with each other in a decentralized manner.
The Cosmos blockchain, funnily enough, does not use Smart Contracts. Instead, ‘Tendermint’ created a software called ‘Cosmos SDK’ which allows developers to build ‘Application Specific Blockchains’.
Cosmos SDK is the structure for creating and building multi-asset Proof-of-Stake or Proof-of-Authority blockchains. The mission is to provide developers with exclusive, easy-to-use tools that can build blockchains from conception.
Every blockchain built using SDK will be able to connect and interoperate with other Cosmos SDK blockchains.
Inter-Blockchain Communication (IBC) Blockchains
Cosmos Blockchain is IBC Enabled (Inter-Blockchain Communication Protocol), which means any blockchain that has IBC will be able to send, receive and transact with any IBC network cheaply, fast and securely.
So far there are over 60 IBC-enabled blockchains including:
- Osmosis (OSMO)
- Injective (INJ)
- Binance (BNB)
- Cronos (CRO)
- THORChain (RUNE)
- Juno (JUNO)
- AND MANY MORE.
Why use Cosmos (ATOM)?
The creators of ATOM believe that all DeFi apps will eventually need their own blockchain if they want to keep up with the rate of adoption of Cryptocurrency.
Sustainability is key. All Decentralised Finance apps/networks must have as little congestion as possible to remain sustainable.
Without a doubt, Cosmos has one of the most superior and interoperable ecosystems. There are over 272 decentralised applications and/or services. The Cosmos ecosystem is full of innovative DeFi protocols, Let’s take a look at the most popular:
The Cosmos Hub stands strong at the centre of the entire Cosmos ecosystem and is a blockchain that provides key services to the interchain such as:
The Marketplace - This includes a Decentralised Exchange that allows swapping across the entire interchain.
Router - This connects IBC-enabled chains and bridges with blockchains such as Bitcoin, Ethereum and EVM-Compatible blockchains.
Custodian - This part of the protocol secures and holds fungible and non-fungible tokens (NFTs) across a variety of blockchains.
Security Provider - This is an upcoming security feature that will secure blockchains in exchange for additional staking rewards.
The biggest and most popular DEX in the Cosmos ecosystem is Osmosis and has a current Market Cap of $265M+. Osmosis is a hub for ATOM users to trade IBC assets like CRO, JUNO, STARS and any IBC-enabled token.
Stargaze is Cosmos’ community-driven NFT Marketplace that has a lot of potential due to its small market cap of $24M. There are many NFT collections to choose from and the marketplace has its very own native token STARS, which can be staked, used for governance and more!
The Decentr protocol allows users to use their own personal data as a payable value. Decentr has the mission to create a bridge between users who browse the internet and applications that are developed using Distributed Ledger Technology (DLT). Decentr (DEC) has a micro market cap of under $1M.
Whilst there are a lot more protocols to go through in the Cosmos Atom ecosystem, you can take a look yourself by exploring the Cosmos Hub.
Cosmos Token (ATOM)
The Native token to the Cosmos ecosystem is ATOM and isn’t capped, therefore is inflationary. Currently, the Staked amount is 190.86M (63%) and there is 110.89M (37%) in Circulating Supply.
ATOM’s Inflation is sitting at 12.27%. The inflation fluctuates between 7% and 20% per annum. The inflation will increase when the Staking Ratio decreases but will decrease when the staking ratio increases.
Users can Stake assets and Earn in Liquidity Pools.
Cosmos Liquidity Pools (LPs)
If you are experienced with LPs, then take a look at Liquidity Pools on Osmosis. We have an article on Osmosis and how their LPs work.
Osmosis has by far one of the best yield farms on any existing blockchain. LPs have the risk of “Impermanent Loss”, which I advise you DYOR if you are new.
Cosmos ATOM Staking
Users can stake any IBC-Enabled token through their Keplr wallet (more below). Staking ATOM and other IBC-Enabled tokens can grant you airdrops of other native Cosmos tokens, as well as earning your standard APY% which is proven to be very profitable on the Cosmos blockchain.
Every 24 hours they distribute Staking & LP rewards directly to your Keplr Wallet.
How To Buy Cosmos (ATOM)
If you’re looking to buy ATOM, it is one of the easiest tokens to obtain. ATOM is available on the most popular centralised exchanges as well as certain blockchains.
We have broken down the two ways of buying the ATOM token:
Option 1- Centralised Exchange
Here are some Centralised Exchanges we recommend for you to buy or trade the $ATOM token:
- Binance - The most popular CEX in the world
- ByBit - EARN UP TO $30K in DEPOSIT BONUSES
- BitGet - Trade on BitGet and receive 0% Deposit Cashback + $5,000 DEPOSIT BONUSES
- Cryptocom - Official Fifa 2022 World Cup Sponsor
It is always recommended not to store your crypto on a centralised exchange due to the various risks it may hold. That is why we recommend option 2.
Option 2 - DeFi Wallet & Decentralised Exchange
To get started you will need a DeFi wallet and make sure to secure your seed phrase with a hardware wallet (Trezor):
For those who are buying ATOM through your DeFi wallet, you will need to have your wallet set up, which can either be on Metamask or we would recommend using a Keplr wallet as it is native to the Cosmos ecosystem. (Youtube Tutorial Below)
If you haven’t set up Metamask, you can buy ATOM on either Polygon, BNB Chain, Cronos and Ethereum or the Cosmos Network, you can check out our tutorial videos here:
Remember it is always recommended to use a DeFi wallet or better yet a hardware wallet like Trezor to store your cryptocurrencies.
At the time of writing, ATOM has a current Market Cap of $3.4B+ with a price of $9.09. ATOM had an ATH of $44.70 and the Market Cap peaked at $11.19B! Cosmos ATOM has the potential to exceed its previous all time high, but will of course depend on market conditions.
There are forever new partnerships and blockchains that are onboarding to the Cosmos network. It is without a doubt, that the Cosmos ecosystem is known for its airdrops. In a future article, we will break down everything you need to know to about the infamous Cosmos airdrops.