What is Komodo and Why is the Price Surging?
Scroll DownThe home of the AtomicDEX digital currency wallet has announced that is has achieved 13 blockchain network integrations with added layers of security for users. Whereas most cross-chain projects these days focus on the Ethereum network, Komodo has not forgotten about Bitcoin, and this explains why its KMD token has rallied by 54% in recent days. This surge was caused by the recent announcement of a partnership with CoinMarketCap, a site which counts 13% of the global daily bitcoin trading volume.
There is an array of digital assets available for digital investors who want to play around with them at scale. Most of these assets are in the form of cryptocurrency, but some have been labeled as a security. Cryptocurrencies are often traded in pairs with a common underlying asset such as bitcoin. This is why it is important for digital assets to have a good underlying currency. Bitcoin is an open-source, digital currency which is also an asset. And unlike some other crypto assets which were hacked, the Komodo ecosystem is built to prevent hacks. Additionally, the atomic swaps which are used in the Komodo network also ensure that digital asset transfers are instant and without any third-party involvement.
It is with all these factors in mind that it is not surprising why Komodo’s KMD has surged. However, it is not just any old market surge which is responsible for the price hike. Instead, Komodo has an important announcement in terms of its blockchain security. The announcement involves CoinMarketCap.com, which is widely considered to be one of the safest providers of cryptocurrency custodial services.
The fact that Komodo has partnered with CoinMarketCap means that users will be able to keep the Komodo and BTC keys in one place. This will eliminate any risk that comes from keeping two sets of keys, and this is quite a change from a few weeks ago when many were discussing how to keep BTC and LTC in different wallets. It is also significant because KMD is the native cryptocurrency of the AtomicDEX digital wallet, which means that holders of KMD are also holders of a very secure digital wallet.
The partnership with CoinMarketCap also has an even bigger implication. Komodo is in a unique position because it is the only cryptocurrency that is based on multiple blockchains. This means that its blockchain is not a sidechain, but rather a series of interconnected blockchains. Bitcoin and Litecoin are sidechains because they connect to the main blockchain by using the same blockchain technology.
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