Gold-Backed Crypto: A Less Volatile Solution for Modern Investors
AABB’s token will make it a worldwide standard of exchange that is secured and trusted with gold backing.
Finance Magnates Staff | Thought Leadership (Thought Leadership) | Thursday, 03/06/2021 | 10:35 GMT+2
Photo: Jeff Patterson
Precious metals over the past year have exploded, leading to substantial increases in prices and demand. A wide range of factors can explain this trajectory, perhaps none more so than the rising specter of inflation that has dominated the market conversation.
Demand and appetite seemingly have been unrelenting in China and broader Asia, as this sector has seen a groundswell of demand over the past year.
However, gold is an inherently volatile instrument, one that is dependent on myriad factors outside of investors’ control.
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Early 2021 has been testament to this, with precious metals prices oscillating and declining amid changes in risk sentiment.
Many investors looking for exposure into junior miners have also been taken on a roller coaster this year, with large swings being the norm in the face of rising bond yields in the United States.
As such, many investors are looking for new ways to garner exposure to gold, without the prevalent volatility that typically defines metals.
This opens up the possibility of multiple new strategies, including the efficacy of gold-backed tokens.
Why Gold-Backed Tokens Make Sense in a Volatile Market
2021 has so far been defined as the ‘everything rally’. However, lost in this euphoria has been the sizable swings that have roiled commodities markets.
Precious metals, namely gold, have been no exception, leaving long-term investors squeamish in the face of whipsawing prices.
Blockchain technology introduces a range of new opportunities to this end, with the ability to create financial leverage, liquidity, and monetized physical gold holdings in both the present and future.
One such company that has explored this channel as of late is Asia Broadband, Inc. (OTC: AABB). The public resource company is focused on the production, supply, and sale of precious and base metals to primarily Asian markets.
Through its subsidiary, Asia Metals Inc., Asia Broadband, Inc. also focuses on the acquisition of highly prospective gold projects in well-established mining camps around Mexico.
Junior mining exposure has been a central tenet of most long-term gold companies, offering a healthy degree of speculation and future growth.
Asia Broadband Inc.’s extensive industry contacts and experience help foster an innovative distribution from the production and supply to client sales networks in Asia.
It is this vertical integration approach to sales transactions that defines AABB and differentiates the venue amongst its competitors whilst offering value for shareholders.
With the aid of blockchain technology and an eye on shareholder value, the Company has since trained its eye on junior mining companies in a bid to achieve a competitive advantage.
Introducing the AABB Gold Token
The company’s solution to this approach lies in the creation of a gold-backed crypto token. The availability of a truly unique mine-to-token product is one that has already caught the attention of traditional gold bugs and other investors.
Consequently, AABB will be rolling out hybrid cryptocurrency, the AABBG token, with a proprietary exchange to help establish a new major revenue stream for the company, while providing AABBG with the same price appreciation as major cryptocurrencies.
The strategy is yet another step towards gaining financial independence from FIAT currency by helping empower investors.
Earlier this year, Asia Broadband, Inc. announced the initial token release of its hybrid token, backed by $30 million in physical gold the company holds.
The token will continue to be backed 100% by additional physical gold acquired from future mining production, gold purchased from cash reserves or credit.
This initial token release available for purchase was 5.4 million tokens at the one-tenth (0.1) gram of gold price (approximately $5.60) for each AABBG token. As such, AABBG boasts the same stability qualities of a stablecoin, though it is hybrid cryptocurrency.
The most unique aspect of AABBG is its vertical integration of Mine-to-Token gold-backing that is unlike any other cryptocurrency. AABB holds physical gold assets to back the AABBG token 100% from the mining production segment of the Asia Broadband.
Backed by $30 million in physical gold
Max supply of 5.4 million tokens
Tied to 0.1 gram of gold price
100% backed by real gold they hold in inventory; only releasing tokens based on amount of gold they hold
Sold over $1 million gold tokens within first two weeks of launch
Token is backed by grams of gold instead of ounces, making it more affordable for the everyday investor
Hold over $100 million in assets, 5 times higher than the previous year
Of note, the token price is tied to and supported to the market price of gold at a minimum.
As the price of gold changes, the minimum supported price of the AABBG token will increase or decrease, however the potential upside price of the token will be driven by market demand.
AABB’s primary goal for the token is to make it a worldwide standard of exchange that is secured and trusted with gold backing.
Asia Broadband looks to achieve this by aggressively expanding token circulation to the primary sales markets in both North America and Europe, and also globally.
In order to purchase tokens, investors must download the AABB Wallet app and pass the Know Your Client (KYC) process.
New Exchange Targeting September Launch
Asia Broadband, Inc. will be looking to launch a proprietary Exchange targeting September 2021.
This will allow AABB Wallet users to complete quick two-way exchanges of their AABB Gold tokens for major cryptocurrencies such as Bitcoin, Ethereum and Litecoin.
The AABB Wallet enables purchasers to transfer AABBG tokens to others who also have the AABB Wallet.
This initial iteration of the AABB Wallet allows Asia Broadband, Inc. to increase token circulation and accumulate revenues to be utilized for the support and stabilization of the token price when AABBG is freely exchangeable in the open market.
An iOS, Android and Web-version of the Exchange will be available with KYC protocols for enhanced security.
The proprietary exchange will look to snowball transaction fee revenues and allow for the price appreciation of AABBG, influenced by market demand and the limited supply of tokens released into circulation.
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