[ad_1]
What occurred
Cosmos (CRYPTO:ATOM) just 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 will be launching a brand new blockchain dubbed Sagan. The brand new blockchain community, which is called after astronomer Carl Sagan, might be used for utility testing and experimentation.
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 nighttime concerning the specifics. Whereas not a lot is understood concerning 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 change and combine knowledge throughout decentralized blockchains, and the ATOM token is to pay the price of these purposes and actions and preserve the community. Sagan’s debut teaser advised that the staff’s new blockchain might 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 yr amid rising curiosity in blockchain-based purposes and providers. Rising considerations about inflation and volatility in equities markets have additionally prompted funding {dollars} to pour into the cryptocurrency house, 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 knowledge throughout networks and check purposes might assist energy extra demand for the ATOM token. Nevertheless, understand that the crypto market tends to be risky, and ATOM stays a high-risk funding.
This text represents the opinion of the author, who might disagree with the “official” advice place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even considered one of our personal — helps us all suppose critically about investing and make selections that assist us grow to be smarter, happier, and richer.
[ad_2]
Source link