invezz.com
Asia Broadband Inc. (OTCMKTS: AABB) has been acquiring more gold deposits as the global recession continues to bit. The move aims to give Asia Broadband and its gold-backed hybrid cryptocurrency, the AABB Gold token (AABBG) more intrinsic value amid the current market uncertainty.
Asia Broadband’s move comes at a time when fears of global recession have escalated as central banks across the globe hit at increasing interest rates.
The head of macro at ING, Carsten Brzeski, said that central banks have somehow started to panic following the huge stock market correction. The S&P500 has, for example, plummeted by over 20% from the highs it set at the start of the month. As a matter of fact, many stocks, especially in the technology and consumables sector are a victim of the ongoing sell-off.
The crypto market has as well had its share of the meltdown with the likes of Bitcoin dropping from its highs of $60K to now struggling to retain value above $20K
The precious metal market is still strong
Despite the sell-off pressure across the financial markets, precious metals have been popping with Silver and Gold witnessing a sharp rise after Russia’s invasion of Ukraine.
As investors and companies try to hedge against the current economic turmoil, gold has often been considered one of the best safe-haven assets based on its performance during the recession. Unlike stocks and other paper assets, gold never goes to zero. That is because it has an intrinsic value and has always held its value even in the face of an economic meltdown such as the current one.
For example, during the 2008 financial turmoil, gold surged by 25% as stocks dipped. Fast forward to 2001, during the dot-com collapse, Nasdaq dropped by more than 50% while gold only lost about 8%.
These are the facts driving Asia Broadband Inc. to acquire more gold now as the markets tumble. The company recently acquired a gold mine project in La Paz to facilitate the production of more gold.
What is Asia Broadband?
Asia Broadband is a company that deals with producing, supplying, and selling precious metals like gold to the Asian Market. It aims at becoming a global leader in supplying a secure transparent mode of exchange backed by gold.
In line with its ambitions, Asia Broadband features a gold-backed token called AABB Gold Token (AABBG) and a crypto wallet called AABB Wallet. The wallet allows users to send and receive AABG tokens and also send and receive emails and text messages.
The AABB Gold token is by far one of the most interesting projects in the crypto space. It is backed 100% by Asia Broadband’s physical gold reserves. At its launch, the token was pegged to the Asia Broadband gold reserves worth $30 million.
The AABBG offers investors a hybrid solution for hedging during such economic times by using a cryptocurrency pegged on physical gold.
Currently, each AABBG token is pegged to 0.1 gram of gold thus giving investors the security of gold and convenience of cryptocurrencies without having to deal with the menace of sorting and storing the physical gold.
Increased gold deposits translate to an increase in the value attributed to every AABBG Token.