Soulbound Tokens (SBT) are becoming a mainstay in the Web3 space for users and projects to define themselves in the digital reality.
A Dec. 13 announcement from Cobo, a digital asset custodian and developer of blockchain technology, revealed a new SBT project uniting crypto industry giants to cater to users’ developing digital identities.
Cobo, MetaMask Institutional and Gnosis DAO came together to create “Evolution”, an SBT project, a tool to help users define themselves in digital reality and keep up with industry trends.
A Cobo spokesperson told Cointelegraph that since SBTs cannot be sold on the market, it helps create a bridge between Web2 and Web3 around the identity of users.
“This provides security to the token provider and allows them to grant exclusive access and benefits to their target users by granting them an identity.”
Although SBTs may be the new trend for branding a digital person, they will not replace non-fungible tokens (NFTs) or the inherent utilities that come with tradable assets.
However, according to Cobo’s spokesperson, SBTs can increasingly be used to create another level of exclusivity not achieved with a standard NFT. Using the “Evolution” collection as an example, holders will receive exclusive quarterly research on the decentralized finance space that will not be available to those outside of their SBT community.
“Although tokens can be used to identify and reward certain users, they can also be used to limit and exclude users from certain projects or benefits.
From the point of view of brands or wallets, SBTs can “dissuade users from switching wallets or rotating keys for security purposes,” says the Cobo representative.
This evolution of major Web3 players comes at a time when the space is changing with the development and introduction of SBTs.
These new digital assets are now seen as a potential key to the metaverse of the future, in which users have citizenship as part of their digital identity.
Recently in Japan, the financial giant Sumitomo Mitsui announced that it is experimenting with SBT to help meet local social needs.
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