Luno, a leading cryptocurrency exchange in South Africa, has announced the launch of a new staking wallet for Cosmos (ATOM), offering users a promotional APY of up to 18% until June 16, 2025. Following the promotional period, the reward will settle at 11% APY, positioning it as the highest staking return among all licensed exchanges in the country.
The introduction of Cosmos to Luno’s staking platform marks the addition of the sixth cryptocurrency to its staking lineup, joining Ethereum (ETH), Solana (SOL), Cardano (ADA), Polkadot (DOT), and Near (NEAR). This move is part of Luno’s broader strategy to expand its staking services and capitalize on the growing demand for passive income opportunities amid crypto market volatility.
Christo de Wit, Luno’s Country Manager for South Africa, emphasized that the exchange aims to provide users with lucrative yet relatively safe investment options. “Staking is increasingly becoming a preferred method of earning high yield on crypto without the elevated risks associated with lending or trading,” he stated.
De Wit added that Luno intends to make staking accessible to all users, regardless of their financial capacity, by eliminating minimum investment requirements and hidden fees.
Why Cosmos?
Cosmos, known as the “Internet of Blockchains,” is a decentralized network designed to enable the seamless interoperability of multiple blockchains. It uses the Tendermint consensus mechanism, allowing users to earn staking rewards by validating network transactions.
The staking process on Luno allows Cosmos holders to commit their tokens to the network, supporting blockchain security and transaction verification. In return, they receive daily rewards that can compound over time, creating opportunities for exponential growth.
“Cosmos is a rapidly growing network with strong technical fundamentals, making it a compelling addition to our staking offering,” said de Wit. “Our users can now benefit from Cosmos’ high yield potential while diversifying their staking portfolios.”
How the Luno Staking Model Works
Unlike some staking platforms that impose lock-up periods, Luno’s staking model offers complete flexibility. Users can stake and unstake their tokens at any time, with no minimum investment required.
Rewards are distributed daily and automatically deposited into users’ staking wallets, allowing them to compound their returns over time. According to Luno, the process is fully transparent, with rewards calculated based on network conditions and user staking amounts.
Luno’s staking service has already garnered substantial interest. Over 150,000 customers have opened staking wallets, and more than R1.5 billion worth of assets have been staked across the platform. Ethereum currently remains the most staked asset, but with Cosmos offering an 18% APY, Luno anticipates a surge in ATOM staking.
Navigating Market Risks
Despite the high returns, Luno’s management emphasizes that staking, like any other investment, carries inherent risks. Christo de Wit cautioned that while staking rewards can accelerate account growth, market volatility can also erode asset value.
“Users must understand that crypto can fluctuate significantly, and staking rewards are not immune to price swings. The potential for gains is substantial, but so are the risks,” he said.
To mitigate risks, Luno advises users to diversify their staking portfolios and stay informed about market conditions. The company also provides real-time market data, educational resources, and regular updates to help users make informed investment decisions.
