ATOM

Cosmos is a blockchain platform built around the concept of an "Internet of Blockchains," aiming to achieve interoperability between different blockchains. Its proprietary IBC (Inter-Blockchain Communication) protocol enables the direct transfer of tokens and data between different blockchains. As the native token used on the Cosmos Hub, ATOM is used to pay transaction fees, to stake, and to participate in governance.

Development was led by Tendermint Inc., which raised approximately USD 17 million in a 2017 ICO, with the mainnet going live in 2019. It uses the Tendermint BFT consensus algorithm to deliver high-speed processing and instant finality. Another distinguishing feature is the Cosmos SDK, a publicly available blockchain development kit that makes it easier for developers to build their own blockchains.

ATOM Security Vulnerability and the Liquid Staking Module (LSM)

In September 2023, the Liquid Staking Module (LSM) was implemented on the Cosmos Hub. The LSM provides functionality that allows staked ATOM to be converted into a liquid staking token.

In October 2024, All in Bits, a development company in the Cosmos ecosystem, reported that a serious security vulnerability existed in the LSM, and that an issue identified in an external audit conducted in July 2022 had been integrated into the Cosmos Hub without being properly disclosed to the community.

Subsequently, in December 2024, OtterSec conducted an external code audit and confirmed that all of the identified vulnerabilities had been fixed. In addition, in June 2025, a proposal to migrate the LSM within the Cosmos Hub to a separate module was passed by governance vote. Users are encouraged to continue monitoring this background and how the situation develops, and to take it into account when making investment decisions.