Brighter minds than me can explain the principle behind our beloved rebasing crypto AMPL better than me. But I think this is what I need to know: the AMPL token has a flexible supply that will expand and contract in response to market movements so that the price of one token remains as close to $1 as much as possible. 

This makes the recent price surge of AMPL rather baffling.

As you can see from the screenshot, AMPL is worth about $1 more than it is supposed to be. Why is that so? This price increase has sustained for several weeks, which piqued my curiosity and solidified my determination to find out more.

Actually, I was skeptical about whether I could find out enough information since I don’t think AMPL is a particularly well-known crypto. But a quick Google search revealed articles like this. In Forbes, no less.

Apparently, a reason that could account for its meteoric rise was that the AMPL developers were expected to release a white paper on an algorithmic stablecoin known as SPOT and associated with AMPL. I can’t make head or tail of this description but this stablecoin is “a perpetual note backed by fully collateralised AMPL derivatives”. This sounds risky and perilous, if you ask me, but hey, I don’t bite the hand that feeds me.

Another reason that may have led to the increased retail confidence is how Coinbase announced that it would now support wAMPL in June 2022.

Of course, given that crypto firms are falling like dominoes and that some people are suspicious about whether Coinbase would follow suit particularly due to its investigation by SEC, you may not want to regard this development as significant. Nonetheless, it is likely to have contributed to AMPL’s enhanced value since wAMPL is fully redeemable for AMPL.

In sum, this investigation exercise has made me realise that AMPL is less obscure than I have mistakenly assumed. I bow my head in shame and thank my lucky stars that Publish0x dishes it out for free!