As NFT space flourishes, CryptoBonds are gaining momentum

The world of non-fungible tokens is hot right now. William Shatner, Logan Paul and Lindsay Lohan are just some of the celebrities who have released their very own crypto collectibles — and recently released research shows NFT sales have reached a record-breaking $100 million in a 30-day period.

NFTs come in all shapes and sizes, and Sync Network has been championing a brand-new asset class to the masses: CryptoBonds. They’re designed to deliver long-term incentives in the decentralized finance sector… and look good, too.

Now, Sync Network has released a new range of CryptoBonds featuring never-before-seen artwork — introducing eight exciting characters, five background scenes, and four levels of rarity: Common, rare, epic and legendary. Other design quirks help ensure that certain NFTs are far rarer than the rest.

This means that Sync Network’s old bond artwork is going to be retired and gradually replaced with this new generation of NFTs — adding a new element of scarcity that could make them even more desirable than before. Crucially, they remain valuable because each bond has locked-up capital that’s going to mature at a later date.

What makes a CryptoBond sought after

According to Sync Network, there are three primary attributes to look for in a CryptoBond: Rarity, maturity and appearance.

As the project explains: “Some CryptoBonds have set limits or caps that will preserve their scarcity over time; they were available only for short runs during a promotional period. Others are rare because they are difficult to create.”

Every CryptoBond has a unique ID number, too — starting with 1. As a result, it’s fairly easy to deduce which NFTs were created early on in the project. Low serial numbers are always cherished among collectors, and Sync Network says these assets will be valuable to those who want to own a slice of the project’s history.

But perhaps the most powerful way of assessing a CryptoBond’s exclusivity is to look at its rarity odds. This communicates the chances that another token exists with the exact same artwork.

Upon maturity, SYNC tokens that were locked up in the contract, plus additional SYNC as yield, will be able to re-enter the market. Naturally, CryptoBonds that are close to their expiry date are likely to be much more valuable. In some cases, assets with rare artwork could be even more valuable than the tokens they represent.

Within an artwork, each element has a varying degree of rarity — such as the sky, the clouds, the moon and even a character’s shirt. This is measured on a scale, with Level 5 representing the rarest trait.

Beauty is in the eye of the beholder

Of course, one unknown is personal taste. As time goes on, Sync Network believes that “we’ll see overall market preferences for certain traits or combinations of traits” — and this could instantly make CryptoBonds that fit this criteria even more valuable.

A Sync Network spokesman told Cointelegraph: “The community loves the new rarity system we recently added with Generation 2 NFTs — collecting tradable CryptoBonds just got a lot more addictive. You can now get common, rare, epic or even legendary yield-generating CryptoBonds for locking liquidity pool tokens and an equivalent value in SYNC.”

Overall, Sync Network’s goal is delivering market certainty for investors. The project also wants to eliminate some of the flaws that exist in the DeFi sector today, where a short-term mentality sees traders hop from protocol to protocol in search of the highest yield. Through CryptoBonds, long-term incentives now exist — with a vibrant secondary market ensuring that these NFTs can be freely traded between collectors.