Leo Discussion: Crypto Projects that failed to gain traction

Leo Discussion: Crypto Projects that failed to gain traction

The Cryptocurrency world or more so Blockchain is expanding at a phenomenal rate and it isn't an odd occurrence to awake and find a a new blockchain promoting itself online promising something new. For many their high hopes are often shattered as they fail to attract investment.

Now, these could be great blockchains with the best intentions but we will never know and then there are the ever growing amount of actual Digital tokens which now sits at 26,324 digital tokens. Next week those numbers will continue to grow.

Today I wanted to do something different and take a look at a blockchain that many were backing to become a top contender and if the post does well we might go back and take a look at a few other Blockchains that almost did.

Today were going to look at Cosmos (Atom) which was dubbed the internet of blockchains. Now I am not saying it is over for the Cosmos network because it is an exciting chain with a lot happening. But it has failed to attract investment and for what it has achieved hasn't really moved.

So let's take a look at a few possible reasons why (opinion only)

Cosmos and it's launch

Since the launch of Cosmos Blockchain there was some pretty big news as the chain promised to solve a lot of the current problems in the decentralised world around scalability and interoperability issues. That being that Blockchains couldn't really talk to each other and sending assets across to other chains required going through a centralised exchange.

Cosmos created an interconnected system where anyone could commence their own chain and link in with each other although there has been a lot of fear around in relation to if this can make it easier for hackers or scammers.

While there have been minor issues, there hasn't really been anything too concerning as yet that hasn't or isn't already happening on other chains and things have seemed to run relatively smoothly.

Fragmented market

One of the main reasons behind Cosmos' struggles lies in the fiercely competitive and fragmented nature of the blockchain market. Since Cosmos (Atom) launch in 2014, numerous other blockchain platforms have emerged each offering their own unique features and benefits.

As a result the market has become saturated making it difficult for any single blockchain platform to gain dominance outside of Bitcoin and Ethereum. This intense competition has hindered Cosmos' ability to stand out and attract widespread adoption.

Cosmos has a unique governance model known as Tendermint, which combines proof-of-stake (PoS) consensus with Byzantine Fault Tolerance (BFT).

While this governance mechanism offers certain advantages, including fast finality and security, it has also introduced complexity and raised concerns among potential users and investors.

The complexity of Cosmos' governance and consensus mechanisms may have deterred some from engaging with the platform, as they may prefer simpler and more established alternatives.

Scalability is a critical factor in determining the success of any blockchain platform because directly impacts the network's ability to handle a growing number of transactions. Cosmos has faced challenges as its design does not inherently provide the same level of scalability as some of its competitors.

This limitation may have hindered Cosmos' ability to attract developers and users looking for highly scalable solutions. Additionally, the lack of a strong network effect where a platform's value increases as more users join has made it challenging for Cosmos to achieve widespread adoption.

It's all about marketing!

Successful blockchain projects require effective marketing and community building efforts. However, Cosmos has a relatively low profile marketing and community outreach especially compared to more prominent projects like Ethereum.

Building a vibrant community and generating interest among developers and users is needed for attracting investment and driving adoption. By falling short in these areas, Cosmos has struggled to gain the visibility and support necessary for sustained growth.

And recent regulatory impacts hasn't been a friend to Cosmos with the recent SEC loss seeing the token rise 12% which means there are a lot of people not taking risks in the current market. Without solid community backing Cosmos still has a long way to go before it can compete against other chains.

But I wouldn't write them off just yet as you never know what will happen and there has been significant growth and development on their network.

What are your thoughts? Is there a future for Cosmos?

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