Coinbase Analysts Evaluate This Altcoin’s New Update: “Take Careful!”

In a research report published by Coinbase, Cosmos (ATOM) altcoin talked about the renewed roadmap.

According to the exchange’s researchers, Cosmos is trying to position cross-chain security as the core implementation of Cosmos Hub, with the possibility of staking liquidity and monetization of shared security.

“Very Few of Revenues Have Been Transferred to ATOM Altcoin Holders in the Past”

Cosmos released a white paper last month proposing major expansions to the use of Cosmos Hub, the blockchain at the heart of its ecosystem.

Analysts Brian Cubellis and David Duong said:

“Despite its potentially critical role in a multi-chain future, very little of the revenue generated by the growing ecosystem of Cosmos app chains has been transferred to native token holders ATOM.”

The report said the recommendations aim to ensure Cosmos Hub is a “reliably neutral security provider” while also further aligning incentives between application chains and holders of ATOM, Cosmos’ native altcoin.

“In this way, they are trying to increase the likelihood that ATOM will generate a monetary reward,” the note said.

The report stated that the white paper was ambitious. While some parts, such as staking liquidity, an on-chain market for MEV (Maximum Retrievable Value), and a system for an equitable distribution of capital to help the ecosystem grow, are innovative developments that could accelerate future adoption, the advantages of the updated ATOM monetary policy are o not as obvious.

Coinbase, cryptocurrency He states that it remains wary of proposed changes in its policy and questions whether the potential benefits from the Cosmos Hub Treasury’s future capital allocation will justify the risk of money loss for altcoin holders in the short term.

*Not investment advice.