Soulbound token project from Cobo, MetaMask Institutional and Gnosis Safe is bringing new NFT exclusivity and proof of identity to users.
For users and projects to define themselves in virtual reality, soulbound tokens (SBTs) are establishing themselves as a cornerstone in the Web3 domain. A new SBT project that brings together titans of the cryptocurrency industry to support users’ developing digital identities was announced on December 13 by Cobo, a digital asset custodian and creator of blockchain technology.
“Evolution,” an SBT initiative by Cobo, MetaMask Institutional, and Gnosis DAO, is a technology that enables users to identify themselves in virtual reality and keep up with market trends.
According to a Cobo spokeswoman, the fact that SBTs cannot be bought or sold on the open market helps build a link between Web2 and Web3 in terms of user identity.
“This provides assurance to the token provider and allows them to give exclusive access and benefits to their targeted users by giving them an identity.”
SBTs may be the newest way to identify one’s digital persona, but they cannot take the place of nonfungible tokens (NFTs) and the benefits that come with trading in tradable assets.
The Cobo representative claims that SBTs may, however, be used more frequently to add a level of exclusivity that is not possible with a typical NFT. Holders of the “Evolution” collection, for instance, will get exclusive quarterly study on the decentralized financial market that isn’t available to anybody else.
The tokens can be used to distinguish and reward specific users, but they can also be restricted and used to keep users out of certain projects or advantages.
According to the Cobo spokesman, SBTs may “discourage users from changing wallets or rotating keys for security considerations” from the perspective of brands or wallets.
The introduction of SBTs and the rise of big Web3 players have caused a shift in the market. Now, it’s being considered that these new digital assets could be the key to the metaverse of the future, where users’ digital identities include citizenship. The financial giant Sumitomo Mitsui recently disclosed that it is testing SBTs to fulfill regional societal requirements in Japan.
