Gold is a popular safe-haven asset because of its limited supply and hedging power against inflation. At the same time, however, owning and moving a sizeable physical amount of gold can be complicated.
Investing in gold has been increasingly popular in recent years. During the sub-prime crisis, we all witnessed a spectacular increase in gold prices. More recently, the rise in inflation and geopolitical tensions awoke gold bulls again.
What happens when we peg the value of a token to gold reserves? As we explain below, Asia Broadband Inc. has recently entered this market with a gold-based cryptocurrency.
Pegging Crypto to Gold
We can think of gold-backed cryptocurrencies as derivative assets using gold price as a benchmark. They eliminate the difficulties of dealing with actual gold, such as transportation and volatility.
Different projects come with various product offers. Some companies will let investors trade their tokens as if they were stablecoins. Other projects will offer a more comprehensive set of tools, such as payment gateways.
Anchoring the price of a token to a precise gold supply aims to take the best parts of two worlds. New projects wish to merge the gold safe-haven feature and the broad token utility of a cryptocurrency.
Anyone looking to invest in gold may want to consider these cryptocurrencies. In particular, this phrase applies to merchants who wish to take advantage of the rising digital economy.
Asia Broadband’s Newest Initiative
US-based Asia Broadband, Inc.(OTC:AABB) is a precious and base metals mining and trading corporation specializing in Asian markets.
The AABB Gold Token (AABBG) is a gold-backed cryptocurrency that the company’s distinct digital assets division issued on the market. The team chose to back this coin with the company’s gold reserves.
Enhanced Market Reach
Asia Broadband boasts total assets above $100 million. The company managed to sell almost 500,000 tokens at an average price-per-coin of $6 over the last year. The first 15 days of trading saw token sales moving above $1 million.
Traders know that gold’s price fluctuates less than that of crypto. Consequently, the team chose to create a connection between the token’s minimum price and the spot price of gold.
In addition to getting rid of volatility through this price floor, investors can profit from a bull gold market phase. This argument is still strong in today’s climate of increasing inflation and depreciating fiat currencies.
Investors will need to assess the risk of falling gold prices when evaluating this investment. At the same time, crypto enthusiasts are aware of a token’s potential on the market, triggering a potentially appealing risk-reward.
A significant advantage to consider is that Asia Broadband can boast a long experience in the gold market. While this aspect is no guarantee of future earnings for a token investment, investors must keep it in mind.
AABB handles the whole process of producing gold, from mining in Mexico to selling it to customers in Asia.
Tokenizing Gold Reserves
All tangible and intangible assets can benefit from a tokenization process.
An investment in gold can happen without necessarily buying a physical amount of precious metals. AABBG combines the stability of gold with the technical innovation of cryptocurrency and blockchain.
Many first-time traders and traditional and risk-averse investors may choose to stay away from a highly volatile market. When traders lose money on high-risk operations, they may discover less volatile assets, such as gold.
With this idea in mind, AABBG’s purpose appears even more evident. The project dreams of combining the advantages of gold and crypto.
AABB backed its coin with 100 percent real gold, all of which originates from the company’s Mexican mines.
About the Project’s Ecosystem
Earlier this year, Asia Broadband opened a proprietary exchange. The platform enables customers to trade the AABBG token for other cryptos, such as BTC and ETH. The AABB Exchange has developed tremendously in recent months, with over 400 available tokens supported.
The company also released a mobile app to enhance the market adoption of its coin. Users can also transfer and receive crypto anonymously using AABB’s proprietary wallet.
Transactions come with a nominal fee, and AABB promises not to collect personal information from its clients.
Finally, users may also transfer and receive the AABBG utilizing the iTransfer function by SMS or email.
The Launch of the PayAABB System
One of the company’s latest announcements is the imminent launch of the PayAABB system.
Businesses will be able to take cryptocurrency shortly, thanks to a new online payment processing service from Asia Broadband. Additionally, the company intends to offer its Merchant API so that AABB Wallet will work in B2B and B2C transactions.
Customers will be able to receive cashback by enrolling in loyalty programs, which retailers can implement. As a result of Asia Broadband’s ambitious intentions, the project wishes to continue to gather momentum.
AABB’s gold-backed coin has the extra benefit of a demand-based price increase that the company hopes to achieve.
Thanks to the rise of blockchain technology, investing in precious metals no longer necessitates interacting with brokers or hedge funds. Readers can follow the latest project’s developments on its official website or social media pages (Reddit, YouTube, and Twitter).