ATOM Risk

COSMOS (ATOM)

INTRODUCTION
‍
DESCRIPTION

Cosmos is a decentralized network of interconnected blockchains that aims to facilitate seamless communication and interoperability between different blockchain platforms. It was founded in 2014 by Jae Kwon and launched in 2019. At its core, Cosmos seeks to solve the problem of blockchain fragmentation by enabling different blockchains to communicate and exchange assets through a technology called the Inter-Blockchain Communication (IBC) protocol.

With its vision of creating an Internet of Blockchains, Cosmos aims to address the scalability and compatibility challenges faced by existing blockchain networks. By enabling different blockchains to communicate and interact with each other, Cosmos aims to foster innovation, enhance the exchange of assets, and create a more interconnected and sustainable blockchain ecosystem. Its modular architecture and focus on interoperability have made it an attractive platform for developers and projects seeking to build scalable and interconnected blockchain solutions.

Cosmos (ATOM) Whitepaper: https://v1.cosmos.network/resources/whitepaper
‍
RISKS OF ATOM

Any investment in cryptocurrency and digital assets, such as ATOM, can include the following general risks:(i) volatility risk and liquidity risk(ii) short history risk(iii) demand risk(iv) forking risk(v) code defect risk(vi) regulatory risk(vii) electronic trading risk(viii) cyber security riskFor additional information of risks associated with cryptocurrency and digital assets, you may refer to the Satstreet Inc Services Risk Statement. In terms of specific risks, as ATOM is one of the longest-standing crypto assets and its community base is widely decentralized, there is no central working group or authority to disclose material information to the public regarding ATOM. Please note that these risks and the associated summaries or overviews provided for each herein are not intended to be a complete overview of all such risks and, in addition, there may be other risks that come with exposure to ATOM. We encourage all users to perform their own due diligence to assess the risks associated with ATOM and to determine whether this level of risk is acceptable to them. Neither ATOM nor Satstreet guarantees the value of ATOM, and holders of ATOM will not have any recourse to ATOM or Satstreet if the value of ATOM declines for any reason whatsoever.

SATSTREET EVALUATION OF ATOM

Satstreet Inc. has reviewed and assessed ATOM prior to making it available through our services and has concluded that ATOM is not a security or derivative under Canadian securities legislation; however, there is a risk that this conclusion could change in the future and that, in such event, Satstreet will be required to halt, suspend, and then remove ATOM from its platform as described in the Satstreet Inc. Services Risk Statement.
Further, as indicated above, no Canadian securities regulatory authority has expressed an opinion about ATOM, including an opinion that ATOM is not itself a security and/or derivative. Based on publicly available information Satstreet has reviewed ATOM, including, but not limited to, a review of the following: The creation, governance, usage, and design of ATOM, including the source code, security, and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that created ATOM. The supply, demand, maturity, utility, and liquidity of ATOM. Material technical risks associated with ATOM, including any code defects, security breaches and other threats concerning ATOM and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them. Legal and regulatory risks associated with ATOM, including (i) any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ATOM, and (ii) statements made by any securities regulatory authorities in Canada, other regulators in IOSCO-member jurisdictions, or the regulator with the most significant connection to ATOM about whether ATOM, or generally about whether the type of crypto asset, is a security and/or derivative.

Last Updated: June 2023

Risk Statements

Interested in learning more?