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Binance added crypto token ATOM to its platform. The announcement comes as a huge boost to the decentralized token swaps project Cosmos which is still in its infancy.
The world’s largest crypto exchange Binance has added a new crypto token ATOM to its platform on Sunday, April 28. ATOM is the native cryptocurrency of the Cosmos blockchain network. In addition to the official announcement by Binance, company CEO Changpeng Zhao tweeted in favor of the Cosmos project:
Here is a project that refused to even talk to an exchange about listing (and we have a good relationship with their tech guys), but we list it anyway.
Good tech wins!https://t.co/Zu0uQZuGH6
— CZ Binance (@cz_binance) April 28, 2019
Furthermore, the official announcement notes that starting today at 12:00 AM EST, the exchange will list ATOM/BTC, ATOM/BNB, and ATOM/USDT trading pairs.
Cosmos – Making Blockchain Networks Interoperable
The Cosmos project aims to solve one of the most underlying issues of interoperability among the blockchain networks. Upon its successful roll-out, Cosmos will facilitate seamless tokens swaps between different blockchain networks, Thus, users on different networks holding different crypto tokens can easily communicate with each other.
However, for this to happen, the “validators” of the Cosmos blockchain network need to activate the “Inter-Blockchain Communication (IBC)” protocol. This will allow Cosmos to function as a platform and let its users interact with other blockchain users. Speaking to CoinDesk last month, the chief of Cosmos project, Zaki Manian, said:
“In proof-of-stake, the costs and rewards [of the system] are internal. So, we had to come up with a very sophisticated system of distributing rewards, of distributing the speculator taxation system, of punishing people for malicious behavior, of punishing people for going offline. All of it has to be internal to the system and that’s why proof-of-stake is such a significant engineering feat over proof-of-work”.
Cosmos, as a blockchain software is gaining quick grounds in the crypto and blockchain community. The Cosmos SDK has a fairly active usage by projects like Binance Chain, Loom, e-Money, TruStory, Sentinel, and Terra.
Cosmos (ATOM) Shoots 40%
Soon after the Binance announcement, the price of Cosmos’ native crypto surged over 40%. As per the charts on CoinMarketCap, the price of ATOM surged from $3.48 to over $5.08 in just a few hours post the announcement. However, at the press time, ATOM’s price has retraced again to $3.95.
The great this about Cosmos is that the project is still in its infancy but has managed to stir the expectations of the crypto community. This clearly highlights the confidence in the projects and its long-term outlook in the crypto industry.
However, investors still remain divided over the value these blockchain interoperability projects can bring to the market. But experts are backing these initiatives. They believe that token swaps done in a decentralized manner will give users better control over their holdings.
“I see early use cases being asset transfer (largely on Cosmos) and making it easier for people to start their own chain by leveraging pooled security (slightly more with Polkadot). Whether most of these chains should exist is a different story,” said Linda Xie, the co-founder at Scalar Capital.