We have seen a tough couple of weeks for stock speculators in the market as the Nasdaq fell over 10% after making a peak in February. But last week it began to rally and Bitcoin went back above $50,000. Those moves back up have driven speculators into a frenzy to find the next crypto play and some have piled into shares of Asia Broadband Inc. (OTC: AABB), which trades on the US OTC exchange, as a result. This morning the stock is up over 18% on over 51 million shares of volume. The stock has been on a steady rise thanks to recent news releases and has achieved a market cap of $527 million US dollars.
I first took notice of the stock on February 27 as it became clear that it was grabbing attention in the world of cryptocurrency stocks. The company announced a gold backed crypto currency called the AABB Gold Token. In a press release dated March 9, the company explained that this token is “backed 100% by physical gold held by the Company in several high security, private locations in Mexico. The Company will continue to back the token 100% by additional physical gold acquired from future mining production and gold purchased from cash reserves or credit. The initial token release will be backed by $30 million in physical gold the Company currently holds. At today’s market price of gold, this initial token release will be approximately 5.5 million tokens at the one-tenth (0.1) gram of gold price for each AABBG token. The token price will also be tied to and supported by the Company at the market price of gold at a minimum. As the price of gold fluctuates, the minimum supported price of the AABBG token will increase or decrease, but the potential upside price of the token will be driven by market demand.”
To be involved in the token one has to use a virtual “wallet” app created by the company. This type of news is driving huge interest on Twitter among stock traders.
I do not have a position in this stock and am not trading it. Neither is Mike Swanson, the head editor of this website, even though he is currently bullish on gold and expecting nice rally after the price of gold hit an extreme oversold technical condition. You can get Mike Swanson’s free before the opening bell stock trading tips and alerts by joining his email list. Subscribe for free by clicking here.