Blockchain Platform Launches NFTs That Are Meant To Act Like Bonds

Telos, a blockchain development platform who have been exploring new and innovative solutions for the application of blockchain tokens, have come up with a new idea: namely, to sell Non-Fungible Tokens (NFTs) as a store of value that will operate in a similar fashion to bonds.

More Options For Fintech Startups

The aim of the project is to allow blockchain startups to perform their Initial Coin Offerings (ICOs) in a more efficient way.

New fintechs on the block have often been faced with a catch-22 – once the ICO was over, trading of the tokens would sometimes begin prematurely, causing the value of the token to plummet before development of the new platform was even complete.

An NFT is a type of crypto token that represents something unique and is not interchangeable with any other token. For instance, 2 bitcoins will always have the same value – but the NFT F1 car paid for with over $110,000 worth of ETH at the time will always be distinctly unique from any other NFT – such as this turquoise kitten that goes for a much more affordable price tag.

According to Douglas Horn – the Chief Architect of Telos – the new T-Bond NFTs will allow investors to sell the NFTs without actually affecting the price of the token until after the project has launched.

“T-Bond NFTs offer a new and powerful option for any project seeking funding based on future technical achievement. Back in the ICO boom and continuing still, far too many projects have raised funds only to see their token plummet in value and community support dwindle. T-Bond NFTs create an ecosystem where projects can raise funds through investors, who in turn have the freedom to sell their NFTs on the secondary market without impacting the token price. This facilitates a vastly more sustainable model by harnessing the new synergy between DeFi and NFTs.”

Although the ICO boom has come and gone 3 years ago, so did Bitcoin – and it recently reached its’ all-time high. Maybe projects like these are the spark of a resurgence in ICOs – which this time around will be able to benefit from advances made in the DeFi sphere.