The popularity of investing in gold during periods of crisis and high inflation is well-known in the financial world. Nowadays, investors have the option of buying gold-pegged cryptocurrencies.
Asia Broadband, Inc. (AABB) is a famous company in the gold business, and its management joined the crypto market with high ambitions. This piece will share essential details to understand how gold-pegged crypto works. At the same time, this article will introduce AABB Gold Token’s main features.
How Does the Gold-Crypto Link Work?
This type of cryptocurrency is one with a strict connection to gold. These digital coins have a fixed value based on the prices of the most famous precious metal.
Because of most cryptocurrencies’ “intangible” nature, their value fluctuates with the number of transactions and investor interest. In contrast, gold-backed cryptocurrencies rely on the physical and “tangible” value of the gold market’s current spot price of gold.
Because of this system, it appears more straightforward to identify what causes gold-backed tokens to change in price. The price swings of Bitcoin and other cryptocurrencies seem to be random, especially to those less familiar with the market. The value of gold-backed cryptocurrencies fluctuates along with the price of gold.
The relative “stability” of gold-backed cryptocurrencies depends on the fact that their value will never fall below that of gold. There is a chance that the value of these cryptocurrencies might even grow above the value of gold.
Gold-backed coins are attractive to risk-averse digital currency investors because of this built-in stop-loss function.
Joining the Growing Crypto Hype
Asia Broadband’s goal is to produce, supply, and sell metals principally to Asian markets.
With the AABB Wallet and the AABB Cryptocurrency Exchange, the company has been making movements in the expanding crypto market. The management is also interested in breaking into the nascent NFT market.
A mining project in Mexico’s Tequila area, owned by Asia Broadband, has recently begun production. A retrofit improvement is underway to expand the processing mill’s capacity from 50 tons per day (TPD) to 100 TPD.
A large-scale extension of the company’s manufacturing and processing facilities is also under study. The larger-scale mining operations will benefit greatly from mining equipment automation and efficiency developments.
The Development of a New Crypto Ecosystem
For $82 million, AABB sold its mining operations in Mexico’s Guerrero Gold Belt (GGB). The company utilized these funds to establish its ERC-20 token, which runs on the Ethereum blockchain.
With over 99.9% of the stock market, the company has $68.4 million in its bank account. Its most recent annual report shows that AABB has almost $30 million in gold bullion.
AABB Gold (AABBG), Asia Broadband’s newly minted mine-to-token gold-backed crypto, is the company’s latest challenge. The token relies on the backing of $30 million in actual gold stored by the Company.
AABB envisions its token as a global standard of exchange with gold backing that is reliable, safe, and trustworthy. The founders highlight the chance for this token to grow in price over time.
To assure the stability and security of the token, Asia Broadband created a crypto exchange. The exchange’s various and intricate systems are continuously growing in a real-time environment. The system already supports hundreds of different cryptocurrencies.
The Launch of PayAABB
Another essential feature of this project is creating a payment gateway system. All crypto enthusiasts dream of a future where people can freely use tokens to buy services and goods. Intending to facilitate the arrival of this future, AABB is ready to launch the PayAABB service.
The project’s Merchant API will allow anyone using AABB’s Wallet to access a B2B and B2C payment system. Thanks to this product, business owners will have the ability to start accepting crypto payments from their customers.
Key Takeaways
Knowing the gold market and its trends is undoubtedly beneficial to understanding how gold-pegged tokens work. AABB is bringing a growing ecosystem to the market to catch more and more attention from potential investors.
AABB updates are easy to find online. Everyone interested in the project can look up its website online. Furthermore, the company is active on social media platforms (Reddit, Twitter (NYSE:TWTR), and YouTube).
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Source: Cryptocurrency - investing.com
