In a bid to tap into the booming DeFi industry, ColossusXT has become one of the latest masternode projects with plans to launch a wrapped token.

For some context, a wrapped token is a digital asset hosted on the Ethereum blockchain with an identical price to another asset that it represents. In this case, 1 COLX is equivalent to 1wCOLX on the Ethereum blockchain.

Wrapped COLX is a way to bring COLX to the Ethereum blockchain [...] wCOLX is an ERC-20 token that’s backed on a 1:1 basis with COLX.

The COLX team gave some reasons why it wants to create a wrapped token. First on its list is the ability to trade its digital asset on decentralized exchanges such as Uniswap. A wrapped token will allow them to circumvent expensive listing fees on popular centralized exchanges. COLX is also hoping to improve its liquidity through the launch of its wrapped token.

Moreover, since several DeFi applications and blockchain projects run on the Ethereum network, an ERC20 token in the form of a wrapped token would make it easier for COLX to integrate with other sites, exchanges, and wallets.

For its fundraiser, COLX has introduced a Rarible profile where donors can buy rare collectibles in return for their contributions. According to the team, the collectibles were created by real artists.