Blockchain

Anchoring Crypto to Gold: How Does the AABB Gold Token Work?

As market volatility rises and stagflation becomes a real possibility, gold-backed cryptocurrencies are becoming an increasingly appealing option. 

Coins backed by gold are a more recent variation on the “stablecoin” concept. Today we will analyze this concept for educational purposes and mention the AABB Gold Token (AABBG) as a famous example.

When Gold Investors Meet Cryptocurrencies

Digital tokens backed by gold are a new way to make the best out of the two different markets. Because a system connects the tokens to real gold, they are reportedly less prone to significant price changes. Those familiar with how cryptocurrencies work will be aware of their high volatility.  

This method lets people invest in an asset that tracks the price of gold without buying physical gold from a dealer. 

Gold serves as a hedge against geopolitical turmoil and inflation, so it’s hardly unexpected that investors are turning to it. Gold-backed cryptocurrencies, on the other hand, are a relatively recent phenomenon. 

One of the fastest-growing forms of cryptocurrency in terms of popularity is stablecoin. This type of token enables traders to move money around without worrying about volatility. 

It is generally costly to swap a fiat currency for a token. This reason is behind the popularity of dollar-backed coins on the market. Yet gold-backed currencies are still a rare novelty in the crypto industry today. 

Consequently, investors may look with interest at this possibility by considering numerous variables.

About AABB Gold

With actual gold as its backing, AABB Gold is a popular Asia Broadband‘s digital asset of choice. The AABB Gold Token, a hybrid ERC-20 cryptocurrency, went live in March 2021 under the AABBG symbol. 

As a hybrid cryptocurrency, AABBG has a peg with actual gold, differentiating it from a traditional stablecoin. Due to its link with gold, AABBG may grow in price following events in the crypto and precious metals markets.  

 

Token holders can benefit from both gold and cryptocurrency features, leading to the potential for price appreciation in both markets. The project managed to sell over $1 million worth of tokens in its first two weeks of trading.

It’s a regular cryptocurrency, but it also has some features of stablecoins. The team chose to back its price with $30 million worth of actual gold at a minimum spot price of 0.1 grams. 

In contrast to other digital assets, AABB Gold is betting on its Mine-to-Token gold-backing. AABB holds gold to back the token’s value from its mining production segment. 

The project’s ecosystem relies on the AABB Gold token, AABB Wallet, AABB Exchange, and NFTs to succeed. The company’s mining production and acquisition plan will represent an essential engine in the project’s growth. The company wishes to carry on this strategy in several Mexican regions.

The Introduction of a New Wallet

AABB Wallet, Asia Broadband’s digital asset wallet, went live at the beginning of 2022. The launch aimed to give investors a way to protect data and digital assets private. The AABB Wallet doesn’t save any information about customers and transactions, so no one else can see what a user trades. 

AABB Gold tokens (AABBG) are available on the market through this wallet system. This digital wallet includes several characteristics that AABB wishes to leverage to gain market traction. 

Users can send digital assets instantaneously, and there are no deposit fees or transaction costs involved. With the help of iTransfer, AABB Gold and other digital assets can safely happen through email, social media, and SMS. 

What Is Next for AABB?

A Merchant API will be available through the wallet, and it will permit B2B and B2C transactions. Business owners wishing to build customer loyalty and reward clients can find this feature appealing. 

Businesses may accept digital assets from across the world using the PayAABB digital asset payment processing system.

Bottom Line

Metals are the primary emphasis of Asia Broadband, a corporation specializing in metal manufacturing, supply, and sale. AABB buys high-potential gold mines in Latin America with its broad worldwide sales network and subsequently distributes metals. 

Readers may keep up with AABB developments on the project’s official website and social media accounts (Reddit, Twitter, and YouTube).

 

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