Uh-oh. All sorts of people are reporting they can't trade AABB on numerous platforms. I was planning on adding another 5K tomorrow, but that may not be happening. I'm hoping it's something to do with a dividend audit, but yesterday was the cut off and I was able to add 2800 today. I guess tomorrow will tell....
Apparently every stock in penny land has decided to make a play in either crypto or NFTs. The latest is one I hold shares in ($MINE) which is a pharmaceutical 'shroom company. They have decided to launch "Shrucoin" in Africa. On the surface, it's a pretty good idea, BUT...this is supposed to be a pharma stock so why in the blue fuck are they messing with crypto? Concentrate on growing your dope and making it legal for fuck's sake. Also, coming Monday is a new crypto "Chia" which is marketed as a green alternative. Apparently mining bitcoin and the like eat up an incredible amount of electricity, Chia can be mined by hard drive memory alone. It's marketed mainly in China and it's upcoming release has caused a shortage of hard drives in China because people are building mining rigs. There is one company in the US actively mining for Chia...ICBU (Which I am a stakeholder in), it went up 28% today after sitting dormant/losing value for a week or so. I'm learning way more about crypto than I ever wanted to. And finally, the stop on AABB trades last night was the dividend count. Most of the morons posting on the boards were sure a squeeze was imminent. Like from the opening bell. It was definitely going to spike over a dollar and all that kind of nonsense. I'm not the most knowledgeable about the market, but the amount of people out there pulling bullshit straight out of their ass and stating it as fact is staggering.
Wut? lol https://www.chia.net/faq/ I would stay the fuck away from this. It sounds like some Dr. Who satire... "proof of space and time"?
I have no idea. I bought my shares long before this came out. Thus far the bullshit has made me money, so if it floats the investor's boat I'm good. From what I've read the damn coin is supposed to launch at $1200, but that could very well be a bunch of horseshit. I've given up trying to separate the bullshit from apples or trying to understand it.
All good dude... but just be aware that I have lived and breathed in the crypto space for a while (as has @malisbad ) and this sounds like just another pile of crap that is more pyramid scheme and pump and dump than any legit tech. If you go in making a buck off of other people's stupidity, that's one thing... just don't think it's legit tech. Just go dig into Bitconnect at some point if you want to see people ripping off tens of millions of dollars and some of the most hilarious memes around crypto
this whole crypto thing just feels a bit pyramid scheme-y to me. Like I wanna get into it because I think there’s a bunch of stupid people who will part with their money, but it just screams bubble and “there’s some legit bad people behind this.” Whole thing just feels weird
This, for the vast majority of "hey we're doing our own coin to back up our commodity!" plays. There is some serious backing behind things like BTC, and Etherium and erc-20 tokens that can implement smart contracts. There is some cool tech coming that uses ERC-20 that you will see from major automobile companies, etc, that has a shot at taking off and being useful and successful. Any penny stock company that announces they have bitcoin or crypto as a major part of their offering is just cashing in on a fad. They might as well say "now with more Beanie Babies!"
There's not a doubt in my mind that you know way more about this stuff than me. I initially bought into ICBU a while back, long before I heard of Chia, and thought it might be a mid term investment...it was a crypto miner that looked to be expanding it's capabilities. It's now more a pump and dump as far as I'm concerned. Everyone and their brother seems to now be launching a crypto and it's going to be the next big thing because "Look at what bitcoin did." That's AABB's one saving grace: Yes, they're also launching a crypto, but it's actually backed by gold. And they own several producing gold mines. And looking at their financials, just their gold mining interests should put them at $.70-1.00, completely disregarding their crypto play. It's not going to hit $25, $50, $100 like pumpers are predicting, the float is way to high. At some point it should go to $3-4 though.
Crypto is, for most use cases, total shit. The question is whether or not it will always be so. Even if *A* crypto is successful, it doesn't mean the one you back will be. It could die and become worthless overnight. I could get in to a long(er) winded explanation as to the hurdles crypto faces with overall adoption. Right now though, it's gambling at the whim of those who control enough capital, or clout, to influence a market that has lost all of its sanity. If you catch it on the upswing and sell out, you can make incredible amounts of money. If you don't, and get slammed on the down, you can lose everything. Not to mention that (almost) none of the places you deposit your money with have the financial backing to compensate a single big player's holdings in case of loss or theft. Most insurance schemes for crypto *operators* are in the 100 - 200m USD range, and charge 75 - 150 bps on all assets in *cold* wallets for the privilege (cold meaning totally disconnected from the internet). It's 150 - 500 bps on all assets in hot wallets (any connection to the internet whatsoever). I say "almost" because the biggest exchange, Binance, issued their own token to self-insure (and pay for some development expenses). BNB is the 3rd largest crypto out there on the market. It's gone up by over 1400%. The value prop of holding BNB is this: The fee discount is almost gone, and it really only matters for high volume traders. Now, this could be holding up the value of the coin, and there is no reason why they can't extend that. The real thing you're leaning on is that Binance promises (and lol if they decide not to) to use their profits to buy at market. If Binance does well, you can do well because people want to drive up that price. A lot of hootin' and hollerin' was done when Binance got hacked and lost a bunch of customer money, but they solved it through their token sales and the war chest built up by that. This only worked because Binance is so popular as a platform (they're expected to be able to buy back enough), and people like CZ (the CEO). Most companies will either have zero insurance, or go through traditional insurers that will charge the above (unsustainable) rates.
Thanks for the info, I appreciate it. The whole thing reminds me of the .com bubble in the late 90's. People were throwing money at anything and everything that had an internet address. Now folks are throwing their money at everything that hints at getting into crypto no matter how ridiculous their claims. I've made some money with crypto pump and dumps, but overall I don't trust any of them. Except AABB. As I've explained before, they are a mining company and their mining assets alone should support their price. Their foray into crypto is just kind of an icing on the cake. My biggest issue with crypto has always been it's not backed by any tangible asset, AABB's is backed by gold that they hold. Will it actually catch on? Who knows. I figure in this case it's worth taking a risk. Overall though I'm very bearish on any crypto, I don't trust anything without some kind of asset behind it other than people saying "It's worth this much, trust me." Time will tell.
AABB seems interesting, but I'm not sure why you wouldn't just buy gold then? What is the advantage of tokenization of gold instead of having it on an exchange (where *n* g of gold at attributed to your account)? What is the redemption process? Fees? Public viewing on the etherium network? I have so many questions. Each token is worth 0.1g Au (31.1g/Oz Au), but it carries _all_ of the risk of investing in a junior explorer with none of the benefit. Yes, you _might_ be buying gold on a steep discount _if_ they bring the mines to production in 10 - 15 years (Paying $0.20USD instead of $5.68USD). Keep in mind that 1/1000 deposits are economic, and 1/10000 get to production. It's most likely that the tokens will be worth nothing. The company has no liability to a token holder if they collapse (which is something juniors do, often). I'm concerned about the company backing this as well. This is a junior exploration company that wants to be a junior mining company. They currently only have 3 letters of intent for 3 properties located in Mexico, https://asiabroadbandinc.com/projects/, with the premier project being what I could only describe as "artisanal" (https://asiabroadbandinc.com/mascota-losreyes/). The geological report is sparse, with very few assays, and wouldn't pass muster on any standard. There aren't reports available for the other two properties either. From what I can tell, the company has yet to do any essential drilling that will lead to any kind of resource definition. no significant assaying, no significant financial work ups, and doesn't actually hold the gold of which they claim backs the token. They're using highly speculative resource estimations based on small drives on one property, and some kind of blue sky, back-of-the-envelope, estimations on the others. They have no mention of costing, permitting, water licenses, remediation. If you've got a spare $1000 sitting around and would invest it in a penny stock, then go for it. I wouldn't consider this a "backed" currency though because they're promising you that it's exchangeable for gold that exists, maybe, in the ground right now.
Just an FYI, Mal is probably the best authority I can think of right now on this exact scenario as he used to be a geologist that did explorations for mining companies, and now works in crypto currencies as his day job.
From my reading they do actually hold $30M in physical gold from the sale of a mine earlier this year. The sale price was $82M and of that they received $30M in gold. Last year's financials showed $16M in profit with a substantial YtY uptick. Obviously those numbers are not a be all, end all...but it's a good start. The company has also delivered on a wallet, a coin, and a dividend in the past month. That doesn't strike me as a company that's trying to screw people out of their money. Possibly they are peddling wishes and dreams, I don't know. That's part of the fun in investing...trying to separate the wheat from the chaff. I really do appreciate your input, it's given me some things to think about. Thanks.
FYI, I could build my own wallet and coin in under a week as a single person. ANYONE can do it, easily with tons of open source software that is readily available. It is NOT a big deal, at all.
This is the last wallet we built into an institutional product: https://brd.com/ https://github.com/breadwallet
Heh. I get it. I'm over my head in something I don't know about and am learning on the fly. And I'm being stubborn. It's all good. I honestly do appreciate the input, but I think AABB will hit $3-4 at some point regardless of it being a good company or not. It's all about the hype and at some point the hype is going to push it north of $3.
To recap, ANYONE can make a coin and call it whatever they want. I could spin up IdiotCoin, and sell it. Doesn't mean anyone will buy into it, or that any crypto exchange will carry it... but I can still do transactions on my own blockchain to people. These guys are leveraging their public company to market their own private coin that will amount to fuck all. There's nothing special about it. They already have something that does the job of the coin... it's called GOLD. I see zero sense in what they're doing. So yeah, a bunch of non-technical miner types will think that they're investing in the next greatest mining thing ever, but it just reeks of a shiity differentiator for a short term pump and dump. Get in on it, make money, but get the fuck out before it crashes, because I see zero long term benefit from anything these guys are doing in the crypto space.
They have sold in excess of $1M of the coin. I will freely admit that it's shady that they only accept crypto as payment and there is no way to convert to fiat at the moment. Yep, warning rockets all over the place. But...the crypto play is only part of the stock value. I may be an idiot and lose my ass, I've done dumb shit before and I'm sure I'll do stupid shit in the future.