It is often seen that stocks experience a bit of a decline or correction after having clocked enormous gains over a short period of time and that is what happened with the Asia Broadband (OTC: AABB) stock this morning.
The stock had emerged as one of the biggest gainers in January after having rocketed by as high as 3200%. This morning, however, the Asia Broadband stock corrected quite sharply and declined by as big as 19%. On Monday, the company had made another major announcement that resulted in further gains.
Yesterday the company announced that it was going to move into the cryptocurrency space and considering the current frenzy around the crypto market, it was no surprise that the stock rallied strongly.
The company collaborated with the wallet and token development company Core State Holdings in order to create its gold token. The price of the token is going to be backed up by 10% of the price of gold at any point. Today’s correction might have been a case of investors cashing in on some of their gains.