Redpill me on ampleforth

[Anonymous No.21607187]

I tried to do my own research, sell me on this.
It's basically just a stable coin right? But instead of pegging or providing collateral it just increases or decreases the supply with a daily rebase function, correct?
So why is the price so volatile, I don't get it

[Anonymous No.21607227]

>>21607187
You put money in
You get less money out
Ampleforth

[Anonymous No.21607256]

>>21607187
it's basically like bitconnect

but on steroids

[Anonymous No.21607352]

>>21607187
Price volatility is the incentive for people to buy the coin in it's early stages. You won't see stability around $1 before the market cap is really high from what i understand

[Anonymous No.21607367]

>>21607187
buy high sell low
you're buying into a share of the total supply so it doesn't even matter what the price is
if you disagree with me you are a "midwit" and you just don't get it

[Anonymous No.21607427]

It's a coin you want to use to see your money evaporate.

[Anonymous No.21607442]

>>21607187
It's dead, the greedy devs are fully willing to dump their supply on any pump. Based is the king now, it's AMPL but with fair distribution. 1 based = 1 YFI before first rebase screencap this

[Anonymous No.21607619]

>>21607227
>>21607352
>>21607367
>>21607427
ow wait, I get it. It doesn't really matter that the price fluctuates because the amount changes in the wallet after each rebase function.

>>21607442
What went wrong with the distribution, they used uniswap correct?

[Anonymous No.21607662]

>>21607187
The price is volatile because of the way the human mind works. Seeing coins gets added creates a buying frenzy when people are expecting the rebase to give them more coins. The opposite when the coins are getting chopped.

Realistically the last pump dumped in way too many coins for the current trading situation (Uniswap only) so we're going to see a series of rebases until the total supply of coins dips.

Circulating supply is around 250 million AMPL and I would expect that number to drop below 200 million before we start a move upward again.

[Anonymous No.21607669]

>>21607619
The devs have most of the supply, held in time-locked contracts. As soon as they unlocked they dumped it into the ground.

[Anonymous No.21607709]

Wait this coin is immune to dollar inflation as well correct? So it's better long term than tether, DAI, USDC, etc

[Anonymous No.21607770]

It was a science experiment for someones thesis at Stanford. Very iq stuff. Not sure if you would understand. We are all losing money every night at 10 pm EST.

[Anonymous No.21607810]

>>21607662

Why are you expecting supply to drop below 200 million in particular?

Is there a reason or just a personal target?

[Anonymous No.21607989]

>>21607669
But it will balance itself out right? It sounds kinda shady, but I guess they earned a lot of money from it allowing further development.


>>21607770
It's kinda hard to wrap my head around it, but I think I understand the fundamentals a bit. It's impossible to lose my money if I put it into this correct?

[Anonymous No.21608053]

>>21607187
rebase is a cool idea, but it just doesn't play out well

[Anonymous No.21608072]

>>21607187
read the redbook

[Anonymous No.21608095]

>>21607989
There is no "further development", this isn't Chainlink. It's a static protocol, they are just pocketing the money.

[Anonymous No.21608193]

>>21607989
Precisely, at 10 PM EST all holders in unison lose money. The plan is to lose enough money that we hit 1B market cap by which we have gained money. It's very high iq. I could go on but you need to provide your IQ first.

[Anonymous No.21608321]

>>21608072
Yes I'm trying

>>21608193
You lose AMPL tokens, but that is to correct the price in the direction of the price target. You don't actually lose any value, correct? You maintain the percentage of the total supply.

[Anonymous No.21608443]

>>21608193
Also my IQ is pretty high although I never did a legitimate test, just those free tests you can do online.

[Anonymous No.21608458]

>>21608321
Ok sorry. I feel bad now.

The coin uses a 24 hour moving average to calculate the rebase. If the daily average is $1.50, the rebase will be (1.5-1.05)/10. So the supply will increase by 4.5%. If the daily average is $.65, the rebase will be -3% or (.65_.95)/10. Anything within .95 to 1.05 has no rebase that night.

[Anonymous No.21608585]

So essentially they are controlling the price target with inflation or deflation. The increased supply creates selling pressure to bring it to 1. The decrease in supply creates buying pressure to bring it to 1. ... all in theory and if only people partake in this market.

[Anonymous No.21608593]

>>21608321
to keep track of your "value", it's easier to just look at market cap

your % of the coin always stays the same
the value of that % changes (look at market cap to keep track of the value)

[Anonymous No.21608673]

>>21608585
the rebases affect the eth/ampl liquidity pool on uniswap, and thus immediately adjusts the price on uniswap. it's not just theory.
on the other exchanges, arbitrage traders take care of the difference.

[Anonymous No.21608698]

If you want to lose your money, why the middleman? Just send your eth to an invalid address, same effect.

[Anonymous No.21608794]

>>21608458
ow yeah, I forgot about that /10 they soften the inflation and deflation

>>21608585
So now would be a good time to buy right?

>>21608593
You're right

>>21608673
ow shit, I never thought about it would affect liquidity pools. This actually pretty ground breaking now I think of it.

>>21608698
Because your not actually losing money

[Anonymous No.21609186]

>>21608794
If you aren't swinging then now is probably a good time to start DCA'ing. This might not be the bottom but it definitely isn't the top (market cap).

[Anonymous No.21609255]

>>21607187
bump