What is cryptobond?
A cryptobond (similar to traditional bond) is a debt security in which an investor loans cryptocurrency, such as Bitcoin, Litecoin, etc., to an entity such as financial institution, governmental body or other organizations. Entities borrow cryptocurrency for a specific period of time at a variable or predetermined interest rate.
Cryptobonds are used by entities to raise cryptocurrency and finance/invest in variety of projects and activities such as launching/expanding product or services.
The term “cryptobond” is first coined and defined by Mohith Agadi.