The crypto market is facing one of its worst periods in history. Recently, the market capitalization dropped below $1 trillion, and most assets are losing value by the hour. Above all, extreme volatility affects tokens without real-world, relatable value.

While this “crypto winter,” as some call it, has no end in sight, the market still has plenty to offer, especially to savvy investors. In fact, emerging gold-backed tokens can help stabilize a portfolio, minimize value bleeding, and help build wealth in the long run.

This article looks closely at how gold-pegged tokens can help you withstand this bleak period for the crypto market.

What Are Gold-Backed Tokens?

A gold-backed token is a cryptocurrency that pegs its blockchain value to the real-world price of gold. Moreover, projects proposing gold-backed tokens have the equivalent precious metal in storage. Therefore, every such token has a real-world correspondent in an ounce of gold under a trusted guardian’s protection.

Gold-backed tokens have numerous benefits, such as:

1.      High resistance to volatility

Gold is one of the few assets that thrive during economic crises. While most financial goods, including stocks and crypto, stutter and bleed, this precious metal surges in value. That’s because most investors rely on its millennia-proven security and indisputable value as a means of exchange.

2.      They open the market to new investors.

Most people cannot afford to buy gold, let alone trade or store it safely. Gold-backed tokens eliminate this barrier by enabling anyone to buy fractions of real gold bullions. They may never see or touch the actual gold, but they own its equivalent value on the blockchain. As a result, they don’t have to worry about storing or keeping it safe. Instead, they can trade it as they please.

3.      High ROI Potential

Adding gold-backed tokens to your portfolio could be a quick and safe way of balancing it. That’s because gold is highly unlikely to devalue substantially in the long term. On the contrary, when the economy thrives, gold prices follow the uptrend. And as we mentioned above, when the economy slumps, the precious metal thrives and resists volatility.

The AABB Gold Token vs. the Crypto Winter

All the benefits above and many more come with a reliable gold-backed token, which should meet the criteria:

•       Backing from a reputable and trustworthy project
•       Verifiable gold reserves backing said token
•       Potential for market growth

A gold-backed token ticking all the boxes is the AABB Gold Token (AABBG), an ERC-20 token pegging its price to the value of real-world gold. The asset comes from Asia Broadband, Inc (OTC: AABB), an industry-leading company manufacturing, supplying and selling various metals.

AABB is a US-based company with solid experience in the production and sale of base metals. The company is actively mining in Mexico and represents one of the most trustworthy brands in the metal industry.

Recently, AABB decided to fuse its activity with modern technologies, including blockchain and cryptocurrencies. This change in brand philosophy has spurred the AABBG token, which the company launched in 2021. Moreover, in the first two weeks following the launch, it sold $1 million’s worth of tokens, which is backed with $30 million in real gold.

Last year, AABB sold 485,932 AABBG tokens on average for $5.6 apiece. The company has more than $100 million in assets. Therefore, it can quickly back 100% of the AABBG tokens, with a circulating supply of nearly $5.4 million at the time of writing. AABBG should provide a stable asset for investors looking to overcome the “crypto winter.”

The current economic environment provides very few assets that can improve a portfolio’s value. AABBG is one of them, and its solidity comes mainly from its parent company. Asia Broadband aims to take over the crypto industry with several products, including a crypto AABB wallet, an AABB Exchange, and a PayAABB Payment Gateway. Therefore, we can safely say the AABBG token has serious potential for market growth.