On (Wednesday) December 30, 2020, the Telos blockchain announced the launch of its new tool. The firm confirmed that the name of the new NFT product it has launched is “T-Bond”. The Telos blockchain confirmed to its users as well as the entire crypto-community the purpose of the new tool.
It announced that the new tool has been designed by Telos to help projects with low-liquidity raise funds. Just recently, Douglas Horn, who is the author of the whitepaper for Telos talked about raising funds through tokens. Horn is also the CEO of GoodBlock, which is a development company and is known for assisting Telos with core development projects.
Horn stated that ever since the beginning of the crypto-industry, the process of raising funds via tokens has been a complex and problematic task. It is not the new and startup firms that face this problem but even the well-established projects face these problems.
He stated that there are many other cryptocurrency projects that face the same problems as they do. He clarified that Telos has never tried raising any funds through the sale of tokens. However, there are many other cryptocurrency firms that have done it in the form of Initial Coin Offerings (ICO). Unfortunately, the majority of the firms end up losing or running low on their finances even before their offerings hit the markets.
As a result, these projects end up with tokens that are reserved in their blockchains and they cannot even sell them. If they want to carry out the selling process, they have to fuel their prices on their own before they start getting liquidated through the markets.
This is where the new NFT “T-Bond” comes into play and with its solution, can solve the problem once and for all. Horn stated that although T-Bonds non-fungible tokens (NFT), yet they have fungible tokens locked inside of them. He stated that these fungible tokens remain locked and unlock only when certain conditions are met.
The example Horn gave to give a better understanding of the method is that the fungible tokens remain locked until the launch of mainnet or a certain amount of time is reached.
With the help of the T-Bonds, the projects will no longer have to tank the prices of the tokens and will be able to raise funds without the traditional tanking maneuver.
Born added that now that the yield-bearing tokens have been introduced, the service potential of T-Bonds has also increased. Now, the investors will be able to carry out hedge yields with the help of the T-Bonds.
In addition to this, the Telos network will also be accompanied by the first applications from the T-Bonds in order to build liquidity for the TLOS Token.