AABB Stock: Asia Broadband Soars on Crypto Token News

The crypto boom has claimed another winner. Investors in Asia Broadband (OTCMKTS:AABB) and AABB stock have done quite well for themselves.

Cryptocurrency: Pile of altcoins represented as physical coins

Source: Shutterstock

How well? Shares of AABB stock are up more than 50% at the time of writing.

For further perspective, AABB shares started the year trading for less than a penny each. Today, investors are paying around 25 cents per share for AABB stock. At their peak a month ago, shares breached 65 cents. That is an absolutely stunning increase in such a short amount of time.

Let’s dive into why investors are piling into AABB stock right now.

Pivot to Crypto a Winning Strategy for AABB Stock

Asia Broadband got its start in the digital media and education space. However, the company’s recent pivot toward precious metals mining has not provided the returns the company’s management team had hoped.

The solution? Create a gold-backed crypto token (AABBG).

The company’s token is 100% backed by gold. Other asset-backed tokens have popped up recently, and the market is seemingly approving of these cryptocurrency options. Investing in cryptocurrencies requires an understanding of the intrinsic value of these assets, which for many (myself included) is difficult to grasp. By backing these tokens with precious metals (or really anything), investors can get a feel for what they’re worth on the basis of some underlying physical asset.

The company plans to store its gold in high-security, private locations in Mexico. Future gold production and gold purchases will be provided via the company’s operations.

The Bottom Line

Indeed, this move seems to be an ingenious way for the company to create synergies with its existing operations. Additionally, investors appear to like the monetization of its assets. It looks like this move is being well-processed by the market right now. I think as more investors look for such asset-backed crypto options, AABB stock is one to keep an eye on.

Again, it’s important to emphasize that these sorts of penny stock plays are inherently risky. This stock is up sharply today, but is still well more than 50% below its peak a month ago.

Accordingly, investors shouldn’t gamble more than they’re willing to lose on such stocks. However, for those wanting to put some funny money to work, this is an intriguing choice.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2021/03/aabb-stock-asia-broadband-soars-on-crypto-token-news/.

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