For users and projects looking to be part of the Web3 community, Soulbound tokens are becoming a key component.
A Dec. 13 announcement from Cobo, a digital asset custodian and blockchain technology developer, revealed a new SBT project which unites crypto industry giants to cater to users’ developing digital identities.
Cobo, MetaMask Institutional and Gnosis DAO teamed up to create “Evolution,” an SBT project, a tool to help users define themselves in digital reality and stay up to date on industry trends.
Cointelegraph was informed by a spokesperson from Cobo that SBTs are not available for sale on the market. It helps create a link between Web2 (and Web3) around 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 are a new way to identify a digital persona. However, they will not replace NFTs and other inherent utilities that come with tradable asset.
The spokesperson at Cobo said that SBTs might be more commonly used to achieve a level of exclusivity unattainable by standard NFTs. Using the “Evolution” collection as an example, holders will receive exclusive quarterly research on the decentralized finance space unavailable to those outside their SBT community.
“Although the 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 a perspective of brands or wallets, SBTs may “dissuade users from changing wallets or rotating keys for security purposes,” says the Cobo representative
Related: Vitalik Buterin suggests making NFTs ‘soulbound’ like World of Warcraft items
This is the result of major Web3 players adjusting to the shift in the space with the introduction of SBTs.
These new digital assets could be a key to the future’s metaverse in which users can have citizenship as a part their digital identity.
Sumitomo Mitsui, a Japanese financial giant, recently announced that it will be experimenting with SBTs in Japan to meet local social needs.