ATOM Dips 3% After Cosmos Founder Advocates For Blockchain Split

Author: Mehab Qureshi | November 27, 2023 11:51am

Jae Kwon, founder of the Cosmos network, has stirred up the crypto world by suggesting a chain split. This proposal has coincided with a 3% drop in the value of ATOM (CRYPTO: ATOM), the network’s native token.

What Happened: Kwon proposed a split in the Cosmos blockchain following the approval of proposal 848 by the Cosmos community.

The proposal, which gained 41.1% support, aimed to lower ATOM’s inflation from 14% to 10%. Unhappy with this decision, Kwon called for a hard fork.

Kwon proposed the creation of AtomOne, a forked chain of the Cosmos Hub, which would support both the existing ATOM token and a new native ATOM1 token. Kwon’s rationale is that this move would allow $ATOM participation and prevent a massive selloff of the token, which could lead to its collapse.

Now listen up Cosmonauts. Despite our voting NWV #848 has ended up passing, something that isn't too surprising (though it would be good to know whether the later votes came from newly purchased atoms) @cosmos @Allinbits_inc #raptureparty #atomone

Now let's coordinate a split.

— antechristus #343 (@jaekwon) November 25, 2023

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Why It Matters: Kwon voiced reservations regarding the potential impact of a new token on the existing one, stating, "I believe that the final plan should include an integration of ATOM and ATOM/ATOM1 so that instead of mass selling ATOM and collapsing it all, we allow participation from ATOM."

Photo by Mehmet Tarik BARAN

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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Posted In: $ATOM ATOM