Asia Broadband (OTCMKTS:AABB) made a big announcement today, and shares of AABB stock are soaring higher by 50% as a result. The micro-cap company focuses on mining and supplying precious metals. However, it has been pivoting itself toward the crypto industry as it makes new developments.
So, what’s the big news that sent this stock soaring?
The company announced earlier this year its plans to develop an exchange, and investors finally received a confirmation date today. Indeed, Asia Broadband confirmed that its proprietary crypto exchange will go live on Dec. 28.
Asia Broadband’s crypto exchange will provide an array of new features for interested users. The new cryptocurrency exchange, called “Exchange,” will allow for the implementation of modules for brokers, the issuance of various crypto-secured loans and credit/gift cards, and trading of over 150 cryptocurrency pairs. The Exchange will be available to use over the AABB Wallet app.
However, this isn’t Asia Broadband’s first foray into the crypto world. The company created the AABB Gold Token (AABBG) this year, which is 100% backed by $30 million worth of physical gold. The gold that AABBG is backed against is mined exclusively by Asia Broadband.
Asia Broadband touts its Mine-to-Token hybrid cryptocurrency as a “one of its kind product.” The token was developed on the Ethereum (CCC:ETH-USD) network and sold over $2 million worth of tokens in the first two weeks after the initial launch. Furthermore, the official website states that AABBG is not a stable coin but rather a token tied to the price of 0.1 grams of gold.
The Outlook for AABB Stock
While the confirmation of this date is great news for Asia Broadband, the cryptocurrency world is saturated with crypto exchanges. Fans of AABB stock may want to track potential announcements detailing the number of new users and the volume of crypto traded once Exchange goes live.
Additionally, the price of AABB stock rose to as high as 53 cents in February after the company first announced plans for Exchange. The stock has since sunk 62% to 20 cents, even after today’s 50% gain.
Like all micro-capitalization stocks, AABB is subject to extreme price movements. Therefore, potential investors should take caution when making their investment decisions.
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On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.