Before I start, DYOR.
Okay, now sit your ass down and prepare to absorb everything I’ve researched over hundreds of hours digging into the AMPLEFORTH protocol and religiously watching its graphs. You can thank me later after you've experienced a span of massive positive rebases
I first learned of AMPL back in July 2020, and it’s absolutely genius. From its use case to how it interacts with the wider cryptosphere, it’s unlike any financial opportunity that I’ve seen in years. I am very confident it is about to experience another huge marketcap expansion like it did 6-7 months ago (mcap 7.5 mil to 700 mil in 30 days). Some of you might remember the tail end of that expansion when it was a top 40 coin.
Ampleforth is a cryptocurrency which translates price volatility to supply volatility through a global “rebasing” algorithm. The price target is the 2019 US dollar, which is currently $1.024, and if the price deviates from a stability range around that price (~$0.97 to ~$1.07) it will proportionally contract or increase the supply of AMPL to all hodlers. That means if you hold 1% of the total supply, then after an expansion or contraction you will still hold 1% of the total supply. If the price increases, then the value of your holdings have increased, and if the supply of AMPL has increased due to positive rebasing but the price stays relatively stable, then you will likewise also have a greater value in holdings expressed in USD. If AMPL goes below $0.97, then the supply contracts and wallet amounts decrease. To go below $0.97 there has to be significant sell pressure, which there currently isn’t, AMPL has been steadily positive rebasing for weeks now.
There are A TON of reasons why I am super BULLISH on AMPLFORTH, and I’ll list them all here. Consider this the ultimate AMPL DD thread. I am not a member of the team or connected to them in any way, just a bullish investor who wants to help the hive mind community print their own crypto tendies. Buckle up.
Protocol Upgrades/What’s on the Horizon
The biggest reason to be bullish on AMPL right now is it is soon to become the most decentralized cryptocurrency in existence. What I mean by decentralized is the number of validators and nodes securing its protocol.
Currently Ampleforth is an ERC-20 token on the Ethereum blockchain, but the token contract is not limited to running just on Ethereum. Its rebasing mechanism can be referenced by any decentralized network that supports smart contracts. The dev team have stated that they will be launching AMPL on NEAR, Polkadot, and Tron blockchains by the end of Q1 2021. Cross-chain bridges will be setup, and once live, the global AMPL rebasing mechanism will apply to AMPL on any of the four chains it will live on (Ethereum, Near, Polkadot, Tron). If the work is done, Ampleforth could also sit on top of other decentralized networks like ADA, Cosmos, Vechain as a financial primitive for stable contracts. As a result, the Ampleforth protocol will be exposed to less risk than other tokens that only run on a single network. Trust me, there are plenty of bad actors constantly looking at ways to exploit and destroy Bitcoin, Ethereum, and others. 51% attacks are more common that the DeFi community would like. In the finance world, less risk is a very attractive quality, and this ability of Ampleforth to run in-sync on multiple blockchains trustlessly is massively undervalued currently. Buy the rumor sell the news.
https://www.ampltalk.org/app/forum/announcements-22/topic/multichain-ampleforth-231/
Amplefroth is also more fairly distributed across its HODLers, unlike BTC or ETH. AMPL whales exist, but since it was created more recently, there hasn’t been as much time for network value congregation to occur like it has with BTC, ETH, and DOGE. Ampleforth has no miners so it's doesn't congregate in the hands of the miners or the rich investors who purchase from them.
Token Distribution/Liquidity Mining
Another very bullish feather in the cap for Ampleforth is the protocols token distribution and liquidity mining programs.
81% of the supply is already circulating, and the majority of the remaining supply is set aside for ongoing liquidity mining programs that they call “geysers”. Geysers typically have a APR starting at 250%, which then reduced to 50-80% by the end of the 3 months each geyser is live for. Geysers add liquidity for decentralized AMPL trading on Uniswap, Balancer, or Sushiswap, so as long as you pay the trading fees, you can’t be stopped from trading like with RobinHood. You’d have to be doing huge trades (100k+ AMPL) to experience any price slippage. Four new geysers launch on Feb 22nd, an event which is usually associated with a price/supply bump as people flock in for the early high percentage APY. After 30 days of being in a geyser you get 3x rewards, which encourages people to stay in the geyser and helps to remove sell pressure.
Also for sell pressure, seed investors have been fully unlocked for 2 months now (6.5% of the supply), the team’s supply is fully locked for at least another year and advisors are still mostly locked up (10.8%, team + investors). Watching the network daily, I saw when seed investor AMPL was unlocked from investors and added to the circulating supply, and I believe most sell pressure is gone at current levels.
https://www.ampltalk.org/app/forum/announcements-22/topic/state-of-the-network-august-4th-2020-90/
If you want something you can sit on to generate money on as a LP provider after it undergoes a massive pump, there has never been a better time to buy AMPL.
Technical Analysis
When trading AMPL, looking price is important, but more important is to made trading decisions based on total MCAP, supply, and % to bitcoin. Since Ampleforth is a DeFi primitive like BTC and Ethereum, it trades differently. Back in July 2020, one of the reasons AMPL exploded is because it leeched a bunch of money off BTC. Learn more about why Ampleforth is unique economically by reading the Redbook.
https://www.ampleforth.org/redbook/
Its unique algorithm and the teams understanding of economics attracted BTC investors to invest into it instead. The same dynamics are at play with ETH also. MCAP has recently broken upwards out of a 4 month massive bullflag that formed from the July to October 2020 rise and fall of AMPL. The supply I am expecting to break ATH soon as it has formed a bullish W-pattern, and as a percentage of BTC, AMPL has now risen above the BTC growth trendline that goes back to its creation. The whole protocol is worth ~10,000 BTC currently, and I expect that to 10x soon as it begins its next expansion into the top set of coins.
Non-Correlation
Because of the unique way Ampleforth behaves, with the supply dynamically increasing or decreasing (or staying stable) based on its current price relative to its price target ($1.024), most people still don’t know how to trade AMPL. Heck, most people in crypto still don’t even know what it is. As of right now there is a huge information asymmetry. Additionally, because of its unique financial design, it has very low correlations with existing cyrpto assets like BTC, ETH, etc on all the different timescales.
https://www.ampleforth.org/dashboard/correlations
Ray Dalio is famous for bringing attention to holding non-correlated assets for financial stability and success, and HODLing and/or staking AMPL is a way to easily stay in the crypto sphere while diversifying your portfolio and removing correlation risk. An easy way to put it is, expect AMPL to behave differently than BTC, ETH, or the others, but if it still appreciates against the USD, then you’ve removed risk from your portfolio. The worst thing that could happen is when all your assets go down at once (like March 2020, stocks, crypto, etc).
Stable Contracts
The Ampleforth foundation has released a really good video explaining why creating financial contracts denominated in AMPL is superior to other cryptocurrencies like BTC or ETH, but to put it simply, if you borrow 1 BTC and then have to pay it back over the next year, but the price of BTC explodes, your risk of defaulting on your loan is now way high. Meanwhile if you had borrowed 10000 AMPL, then you need to pay back 10000 AMPL (plus interest). Go to the AMPL dashboard and click the all-time price graph. Average AMPL value, $1.02, and the current price target is $1.024. What this means is that will regular loan payments the borrower will pay back the same amount lent out, and therefore risk of contract default is now lower, which strengthens the underbelly of DeFi. Very nifty, and over the long term, AMPL will disrupt and replace BTC and other cryptocurrencies which experience massive price volatility for contractual obligations.
https://www.ampleforth.org/dashboard
TLDR
Collectively if we all work together and keep the price of AMPL above $1.07, then the supply of AMPL can expand every 24 hours, rebasing and increasing token balances equally to all HODLers until sell pressure increases and the fun is over. The more that join in, the longer this can continue for, but like what happened in July 2020, once rebases start to hit the double digits, and wallet balances are increasing by 10+% daily compounded with price increases, the general FOMO will be insane. The Ampleforth protocol will dramatically inflate when this happens, and if you get in early I think there is a real good shot that you can 10x your bag. Eventually the protocol will find a new stabilization point off the new ATH. As the team builds out more use cases and others begin to adopt using AMPL for smart contracts, or for other purposes (KeeperDAO perhaps?), then the usage of the protocol will increase and it can continue to grow. I expect Ampleforth to grow against BTC for years to come, and in a non-correlated way.
The fundamentals are there, the use cases are there, and the liquidity is there. Now is the time to buy your golden ticket.
If you are looking for the next GME or DOGE, this is it. DYOR you degenerates, and lets print some AMPL tendies.
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