ATOM is the governance token of the Cosmos network. The Cosmos white paper was released in 2016. The ICO held in April 2017 with a price of $0.1 per token was preceded by two private sales in January of that year. A total of $16 million was raised. ATOM is generated to provide security for the project's blockchain, the Cosmos hub.
ATOM hasn’t become expensive yet. There might be several reasons for that. First, the founders were more focused on network development. Second, all new cryptocurrencies struggle to achieve BTC levels even though their networks aim to solve many of the problems Bitcoin has.
The US dollar is a well-known fiat currency. ATOM is among the top-40 cryptocurrencies by market capitalization, according to CoinMarketCap. Trading ATOM to USD, you should consider the liquidity degree of the US dollar as ATOM is still a developing cryptocurrency that can barely set a course for the price direction.
The USD rate depends on the global economy and policy. The USD serves as a safe-haven asset that appreciates in times of uncertainty as investors prefer to put their funds in assets that have confirmed their reliability.
Also, to predict the price direction of the ATOM/USD pair, you should look at the medium-term BTC trend. Price direction within a day can differ from coin to coin, but the medium-term trend is determined by Bitcoin’s direction. Although in many cases, ATOM isn't strong enough to affect the pair's rate, the network's internal events have an impact on the token's strength. You can follow the news regarding the development of the Cosmos hub that will push the governance token's rate up. If the network goes through a difficult time, the odds are that the currency will depreciate.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
