Cobak Token (CBK) is the native cryptocurrency of Cobak, a South Korea-based cryptocurrency platform and ecosystem. Launched in 2018, Cobak aims to provide an open financial services environment focused on cryptocurrency adoption and blockchain innovation. The CBK token plays a central role in this vision.
Overview of Cobak
Cobak started as a cryptocurrency research service provided by Dunamu, the operator of Korean crypto exchange Upbit. After gaining popularity, Cobak was spun off into its own company with the goal of driving mainstream blockchain adoption.
The Cobak ecosystem includes a cryptocurrency wallet, decentralized finance (DeFi) services, blockchain analytics tools, stablecoin issuance, and more. The platform aims to provide easy access to crypto investing and decentralized apps for mainstream Korean users.
Cobak raised $13 million in funding from investors including Korea Investment Partners, SB Investment, and Shinhan Capital. It has also received regulatory approval to operate from Korean authorities.
Utility of the CBK Token
The CBK token is the backbone of the Cobak ecosystem, with a variety of utility functions across the platform’s products and services:
- Payment for Services — CBK is used to pay for premium features, analytics, transactions, and other services on the Cobak platform. Users stake and spend CBK to access these services.
- Rewards — CBK tokens are distributed as rewards to users for actions like referrals, content creation, participation in campaigns, and reviewing services. This incentivizes usage.
- Fees — Network fees from activities like trading, lending, and borrowing on Cobak’s DeFi platform are collected in CBK tokens, creating built-in demand.
- Governance — CBK holders can participate in governance of the ecosystem by voting on platform upgrades, new feature proposals, and other policies.
- Staking — Users can stake CBK tokens to provide liquidity and support operations in return for rewards. Cobak plans to transition to a proof-of-stake consensus model.
By tying all these functions together under one token, CBK aims to create a self-sustaining ecosystem with aligned incentives.
CBK Token Supply and Distribution
The max supply of CBK is limited to 10 billion tokens. No additional CBK will be minted after the initial supply distribution.
Of the total supply, 20% was sold during Cobak’s seed and private funding rounds. A further 30% is allocated to community rewards and ecosystem development.
The remaining 50% is held by Cobak and vested over time. This reserve will fund ongoing growth and prevent excessive volatility in CBK’s early stages.
CBK was initially launched as an ERC-20 token on Ethereum. However, Cobak plans to eventually migrate the token to its own custom blockchain down the road.
Product Roadmap and Developments
Cobak has continued to expand its suite of blockchain-powered financial services since CBK’s launch:
- Cobak Wallet — A multi-asset crypto wallet with support for CBK and other tokens. Cobak Wallet also enables access to DeFi services.
- Cobak Market — An integrated trading platform for spot and derivatives markets, with CBK as a base pair.
- Cobak Invest — A robo-advisor and investment service supporting crypto portfolios and yield generation.
- Cobak DeFi — Decentralized lending/borrowing protocols and staking pools to allow users to earn yield on CBK and other assets.
- Cobak NFT — An NFT marketplace where users can create, trade, and leverage NFT-based financial products.
CBK will continue playing a pivotal role across all existing and upcoming products as Cobak executes its roadmap.
In summary, the CBK token is the fuel powering Cobak’s vision of mainstream blockchain adoption. By incentivizing participation across its ecosystem of products, CBK aims to create a sustainable and virtuous loop of usage.
If Cobak succeeds in its mission, CBK could see significant utility and value accrue as demand for the platform’s services grows, especially among Korean crypto users. The multifaceted functionality of CBK makes it one of the more compelling platform tokens in the blockchain space today.