Despite the fact that 2020 has been one of the busiest years since cryptocurrencies have existed, that has not prevented multiple projects from going ahead and receiving attention from the crypto community. This is the case of Ampleforth, a cryptocurrency project supported mainly by blockchain technology and based on the DeFi protocol, which is why it has managed to capture the attention of many investors and users of the ecosystem.
Disclaimer: this post should not be considered investment advice. This is only for educational purposes only. Never invest more than what you are able to lose and always ask for information to your professional financial advisors. We are not financial advisors.
What is Ampleforth?
Ampleforth is an open-source cryptocurrency project-based and built on the Ethereum blockchain although instead of depending on it, it is independent. Actually, it is compatible with other blockchains. The main goal of the Ampleforth project is to reinvent money by offering a cryptocurrency with an elastic offering that it describes as adaptive money based on a strong economy.
How does Ampleforth work?
After answering the “What is Ampleforth?” question, we should talk about how it works. In an attempt to curb volatility and maintain a relatively stable price, the Ampleforth protocol implements an anti-cyclist policy, which in turn sets it apart from other DeFi protocols. In fact, the team seeks to maintain a price of $1. The issuance of your tokens is not something defined as it happens in most other projects, but depends on your demand. To achieve this, they increase or reduce their supply according to the demand or supply of the moment.
When the demand for AMPL increases its supply, it also does so to prevent its price from rising, and the same in the reverse situation. AMPL is not a stable currency even though it agrees with them in wanting its holders to maintain their purchasing power. However, AMPL is not backed by the dollar, it is a normal cryptocurrency that plays with volume, since the volatility of its price becomes the volatility of its volume.
About the AMPL token
AMPL is the designated token to the Ampleforth platform and is part of the ERC-20 token network. AMPL was designed to function as a medium of exchange and is capable of scaling supply to meet the demands of billions of users.
Among its functions is to be used as a guarantee for decentralized banking systems and as an alternative monetary base of the crypto world. To achieve this, you must gain the trust of the community, as well as prove that it is reliable as a method of exchange and storage of value.
The team organized three sales to raise funds. The first two were Initial Coin Offerings (ICO) and the second an Initial Exchange Offering (IEO). In total they managed to raise close to 10 million dollars. Specifically at the end of 2018 the ICOs raised 3 million and 1.75 million dollars, respectively. Currently, the price of AMPL remains at USD $0.911769.
DeFi projects have gained a lot of prominence over the last 2 years, and the idea of decentralizing finances is exactly what many people expected from cryptocurrencies. However, it should be noted that this type of investment must be carried out carefully and on the appropriate platforms, since there is always a margin of risk. For more crypto content and trading signals on different exchanges, join Altsignals.
