An ATOM Split?
The Cosmos Hub (ATOM) is undergoing major changes. Token holders voted to cut ATOM inflation in half last week, but not everyone is happy: ecosystem leadership is now advocating for a chain split! Where’s the ATOM opportunity?
ATOM price reacted positively to confirmation that inflation would be reduced, with the token rallying 8% on Saturday after the vote closed. While the market was pricing in the implications of reduced future sell pressure, the chain’s founder made public his intentions to rage quit after the vote failed to go his way.
Jae Kwon’s plan involves the creation of a new chain, AtomOne, whose token (ATOM1) would be airdropped to participants (i.e., stakers and token holders) within the existing Cosmos Hub. Both recipients of ATOM1 and holders of ATOM will be able to stake their tokens to secure the new AtomOne network.
While it is currently unclear whether Kwon will go through with the fork, the end result could end up being a net positive for the entire Cosmos ecosystem!
Recipients of the ATOM1 airdrop who do not wish to participate in the new chain can simply sell their allocation for more ATOM Meanwhile, the departure of Kwon and his relative conservatism could pave the way for more innovation within Cosmos Hub.
Acquiring ATOM now could allow you to cash in on a potentially lucrative ATOM1 airdrop and give you the flexibility to determine which ecosystem you want to participate in post-split.