Cosmos Detects Major System Weak Point – Will ATOM Price Be In Trouble?

Christian Encila

2 years ago

3 mins read

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Cosmos is now making sure their system won’t share the same fate as the BNB Chain that was drained of $100 million worth of tokens in a hacker attack last week.

On October 13th, Ethan Buchman, co-founder of the Cosmos inter-blockchain communication (IBC) ecosystem, revealed a major security weak point that affects all Cosmos chains that utilize IBC, regardless of the version of IBC they employ.

The Inter-Blockchain Communication protocol allows users to seamlessly switch from one Cosmos blockchain to another.

42-IBC Connected Blockchains At Risk

Currently, there are 42 blockchains that are IBC-enabled. Among these are Cosmos Hub, Osmosis, Cronos and Evmos.

OKX Chain, Luna Classic and Thorchain are some of the major blockchains which have integrated IBC before. Luckily for them, the functionality was either already deactivated or was never fully enabled to begin with.

Buchman’s disclosure during the Cosmos Hub Forum is not to be taken lightly especially that all affected networks combine for a total market capitalization of $8.18 billion.

Meanwhile, the Cosmos co-founder said the problem has been dealt with through a patch that will be deployed on all blockchains currently at risk.

Developers and validators were given private access to the patch before the announcement of the security threat was made.

A third of a blockchain’s voting power must be patched in order for it to be safe from the said vulnerability.

ATOM Price Takes A Hit

The news about the potential threat took its toll on ATOM, the cryptocurrency of Cosmos, as the asset is experiencing a price drop.

At press time, according to tracking from Coingecko, ATOM is trading at $11.58 and has been down by 4.4% over the last 24 hours. Its price correction furthered its decline over the past seven days as the crypto is -10%.

Although it is forecasted to jump all the way to $13.31 over the next five days, the general sentiment toward the asset remains bearish according to Coincodex.

In fact, the online crypto data provider said 25 of the 28 technical analysis indicators for ATOM gave bearish signals.

As for the Fear and Greed Index, the crypto tallied a score of 24 which translated to Extreme Fear. Moreover, Coincodex said now is a bad time to buy the asset.

It’s understandable that the digital currency would react negatively to the development announced by Cosmos.

It’s now a waiting game to see if the mentioned solution for the detected threat will allay fears and negativity that pushed ATOM to another bearish rally.

ATOM total market cap at $3.31 billion on the daily chart | Featured image from Zipmex, Chart: TradingView.com

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.