Cosmos ($ATOM) was once viewed as a promising project in the cryptocurrency world, but its status has drastically declined in recent years. This article examines what went wrong and whether there is still a chance for recovery.
The Rise: Ambitious Launch of Cosmos
In 2017, Cosmos raised over $17 million in BTC and ETH during its ICO. By 2019, the Cosmos Hub and the ATOM token were launched, promising to be the infrastructural layer for blockchain interoperability. However, by 2020, internal conflicts began to tear the project apart.
Missing the DeFi Boom
While Cosmos technology continued to support new chains, the ATOM token failed to capitalize on the DeFi growth. The proposed upgrade ATOM 2.0, which could have improved tokenomics, faced resistance and was rejected, complicating the project's predicament.
Current State of Cosmos Hub
Currently, Cosmos appears abandoned and the ATOM token has not met expectations. Analyst Nonzee outlined three key measures that could help in the project's recovery: improving tokenomics, increasing token utility, and establishing unified leadership.
The situation surrounding Cosmos and its ATOM token remains concerning. However, considering the loyal community that still exists, the project may have a chance at recovery if the right steps are taken in the near future.
