Blockchain Investor Analysis

Cosmos

ATOM
Current Price $6.20 (-2.46%)
The aim of Cosmos is to combine separate blockchains, allowing for interoperability and a type of "Internet of Blockchains. The Cosmos Tokens (ATOM) serve as Proof of Stake, voting rights, and validations within the Cosmos network.

Our Rating:

Market

Problem that it solves

Cosmos is a decentralized ecosystem of blockchains that, rather than keeping blockchains separated, combines them to allow interoperability, currency exchanges, and an Internet of Blockchains (IoB). In short, it provides projects the ability to operate between blockchains.

Customers

Cosmos has already acquired a solid customer base of blockchain projects and independent developers. Their service is designed for complex blockchain projects that find specific value in cross-blockchain compatibility.

Value creation

The Cosmos ecosystem can be summed up in three points of value. First, it makes blockchains powerful and easy to develop. Secondly, it enables certain blockchains to transfer data or 'value' between each other while remaining independent. Thirdly, Cosmos aims to provide both vertical and horizontal scalability for blockchain applications.

Market structure

The market for Cosmos is predominantly composed of blockchain projects that want to be able to communicate between blockchains.

Market size

The market for this product/service has yet to really formulate. The goal of Cosmos is to create the 'Internet of Blockchain', which is an ecosystem of blockchains that are able to communicate with each other. The more chains it adds to the network, the more appealing it becomes.

Regulatory risks

ATOM is a proof-of-stake token, which could face regulatory scrutiny in the future as it could be considered an interest-bearing digital asset by regulatory authorities.

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Competitive Advantage

Technology/blockchain platform

Cosmos is one of the most advanced and complex blockchain networks in the market today.

Lead time advantage

Cosmos has a strong lead time advantage for the specific service it offers. No other project on the market is looking to create an 'Internet of Blockchains' in the same manner.

Contacts and networks

Cosmos has yet to land any marquee partnerships. Their focus is on the startups looking to develop powerful and unique blockchains.

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Management Team

Entrepreneurial Team

Jae Kwon is the founder of Tendermint and has led the Cosmos project since 2014. Moreover, the team has a number of experienced developers.

Industry/technical experience

The Cosmos project was launched in 2014, which means its team has over five years of blockchain industry experience. The team took nearly five years to launch their main net, which could speak to the complexity of the project, or the potential lags within the team.

Integrity

The project has had bad press, which suggested that its leadership is no longer as strong and unified as it previously was.

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Token Mechanics

Token required

ATOM is used within the Cosmos platform for a variety of functions including Proof of Stake, voting rights, and validations in the network.

Value added

The developers who are building with Cosmos's platform will find inherent value in ATOM, whether that's through discounts or ease of use when operating on the platform.

Decentralized

ATOM users will all have voting rights, meaning that if the tokens are well dispersed, a more democratic and decentralized ecosystem will exist. However, as with all PoS networks, there is always a risk of centralization through large investors.

Token supply

ATOM has a circulating supply of 190 million and a total supply of 297 million.

Public exchange

ATOM is accepted on a wide variety of leading exchanges, including Binance, Huobi Global, Kraken, Bibox, and OKEx.

MVP

Cosmos launched their main net in 2019.

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User Adoption

Technical difficulty

Due to the nature of the project, Cosmos will not be the easiest read for most people. The protocol has multiple layers within it, each one providing a different feature for the project. It takes someone who is familiar with the blockchain space to really grasp this concept.

Halo Effect

The Cosmos project is still getting off the ground and working on developing their customer base. Aside from their backing by the Interchain Foundation, Comos' halo effect is limited.

Buzz

Cosmos has seen its fair buzz on social media. However, it does not compare to some of its more popular peers.

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Overall Score

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Blockchain Investor Analysis

Cosmos is one of the most advanced and complex blockchain ventures in the market today. Cosmos' teams seeks to disrupt the entire blockchain landscape by implementing connectivity between separate blockchains. They want to allow for the safe transfer of data between chains, interoperability, and a collective of blockchains known as the "Internet of Blockchains".

The road ahead is littered with obstacles for Cosmos. Their entire idea is predicated on the assumption that blockchains will require the ability to interact with each other. Furthermore, the project does not scale well outside of the blockchain space, so Cosmos' success is closely tied with growth in the blockchain industry.

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