On Wednesday, The Telos blockchain announced the launch of a new tool to help raise funds for low liquidity projects: a non-fungible token product called “T-Bond”.
In an interview with Cointelegraph, Douglas Horn, Author of the Telos white paper and CEO of GoodBlock, a development company helping with the core development of Telos, He said that token-based fundraising is a complicated problem for both established and new projects.
“Many cryptocurrency projects face similar challenges as we do. Telos has never raised money on a token sale, but many ICOs have seen their finances run dry before their projects are ready for the market.” , said. “These projects are encountering token stocks that they cannot sell without immediately lowering their prices when the liquid tokens hit the market.”
One possible solution is the new Telos product: T-Bond. T-Bonds are bundles of fungible tokens that have been enclosed in non-fungible tokens (NFT) until a certain condition is met, such as the expiry of a certain period of time or the start of a main network.
As a result of the sale of the T-bond, the projects may be hypothetical Collect money without affecting the price of the tokens. In addition, with the advent of yield tokens, T-bonds have the potential to become a tool for investors to also hedge returns:
“For tokens with bonuses, the T-Bond NFTs could act as a hedge against changes in interest rates, similar to a T-Bill.” Said Horn. “So that creates an exciting derivative like a primitive DeFi.”
It’s no surprise that one of the earliest T-Bond apps was helping Telos create its own liquidity. TLOS token. The token had a brutal year as the rest of the blockchain ecosystem flourished, falling from $ 0.05 per token to $ 0.02.
However, According to Horn, a lack of liquidity and lack of acceptance are the main obstacles to the price increase.
“Investors keep coming to us and asking about the project […] But they haven’t made the big investments they’d like because there isn’t a lot of liquidity, which means that their own investments, even modest investments in tens of thousands of dollars, would create 5-10 times the market price right there. “
As a solution, Telos has developed a strategy that calls “TULIP” (Telos Uniswap Liquidity Implementation Plan): Telos will raise funds through a T-bond sale which will then be used to build a liquidity pool in Uniswap, a plan that builds on Katalyo’s successful Uniswap launch. a decentralized application based on tokenized real estate Telos.
When a new bull market starts and projects try to take advantage of it, Horn also believes the T-Bonds could help a variety of other projects with their funding problems.
“Just as T-Bond NFTs help Telos level up by solving our liquidity and volume problems, we believe we can help others. I think this could create a very strong market for fundraising sales. Primarily followed by secondary market coverage.” .