ATOM Dips 3% After Cosmos Founder Advocates For Blockchain Split
Portfolio Pulse from Mehab Qureshi
Jae Kwon, founder of Cosmos, has proposed a chain split for the Cosmos blockchain, which has led to a 3% drop in the value of ATOM, the network's native token. The proposal comes after the Cosmos community approved proposal 848, which reduces ATOM's inflation from 14% to 10%. Kwon suggests creating AtomOne, a forked chain that would support the existing ATOM token and a new ATOM1 token, to prevent a massive selloff and potential collapse of ATOM.
November 27, 2023 | 3:51 pm
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NEGATIVE IMPACT
The proposal for a Cosmos blockchain split and creation of a new token, ATOM1, by founder Jae Kwon has led to a 3% decrease in the value of ATOM. This news could lead to increased volatility in the short term as investors react to the potential implications of the split.
The direct mention of ATOM's price drop following the proposal indicates a negative market reaction to the news. The creation of a new token often leads to uncertainty and can cause existing token holders to react negatively in the short term, fearing dilution or a shift in the network's value proposition.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100