Ever heard the expression “BBT”? Short for “business-backed token”, this term refers to a token whose value is based on the success of a given business.

The price of a BBT will generally rise when a business achieves an uptake in revenue, and conversely drop if revenue falls.

Stablecoins are tied directly to legal tender, whereas an ABT (“asset-backed token”) refers to a token whose value is directly linked to that of tangible real-world assets, such as gold. A BBT’s value, however, directly correlates with a given project’s business revenue.

The crypto asset SG is a token linked to the sales made on the SocialGood App – the more proceeds generated using the SocialGood App, the more valuable SG as an asset becomes. This is because SG is bought back from the market using proceeds made in-app as capital.

BBTs are different from standard security tokens, however, as issuers of BBTs do not pass on the proceeds directly to BBT holders. Furthermore, the price of BBTs fluctuates differently to prices on the crypto market – the price of SG fluctuates completely separately to that of Bitcoin, for example.