Ampleforth (AMPL) is a token pegged to the dollar value but at the same time volatile (within a certain limit). Through a mechanism called "Rebase" it increases / decreases the supply to maintain its value in a range between $ 0.96 and $ 1.06.
Clearly, the new tokens placed on the market (or removed from it) also have an impact on the balance of users (this serves to not change the market capitalization and the shares held). The amount of tokens in your wallet will change accordingly following the respective rebase scenarios:
1) Positive rebase → you have more tokens in your wallet
2) Negative rebase → you have fewer coins in your wallet
Why should I keep this token if negative rebases remove the tokens from my wallet? The key thing to understand is that rebases affect all portfolios which are proportionally balanced, leaving users with the same % market cap.
You shouldn't expect the price of an elastic bidding token to go 10x or 100x because it won't go up. It is still possible to earn with rebases and thanks to a growing market capitalization.
I will not dwell on this mechanism (here is a sample explanation: Ampleforth? How To Explain It To Children and Grandparents), I would just like to hypothesize possible use cases.
✅It can be the link between FIAT money, volatile crypto (like BTC) and stablecoin. AMPL is none of these things but at the same time encompasses all three
✅It is not related to the price of BTC (which we know affects the whole cryptocurrency market)
✅It is not a deflation-related asset (like gold or BTC) but still remains of great value
✅Very useful for diversifying your portfolio, not being related to other crypto, gold, commodities or other digital assets
✅Completely decentralized because it is only the market that decides the offer, certainly not the government or the founders (for example USDT is unsafe, USDC is certainly reliable but centralized, Dai instead is decentralized but to create it you have to block a volatile collateral)
✅Being not very volatile, it can be used as collateral in DeFi protocols (to ask for a loan we must provide a guarantee but if this decreases too much in value, we risk being liquidated, no longer receiving our asset. This for example can easily happen with Ethereum)
✅Can be an alternative to central bank money (as a medium of exchange)
✅Profit both in the short term for speculation (Trading) and in the long term (because not very volatile). As market capitalization grows and AMPL becomes more liquid, trading activity will increase and traders will seek to settle orders and become the arbitrageurs who help align the price with the target set.
✅Possibility of holding, thanks to the staking mechanism: Ampleforth (Geyser)
A negative aspect or in any case a constructive criticism concerns being an ERC20. I believe it is the biggest problem for a mass adoption because the cost of gas, in some periods, is too high. Obviously this applies to all ERC20, not just AMPL.
What do you think about it? Will you invest in AMPL? Would you accept a 🆂🅰🅻🅰🆁🆈 in 𝔸𝕄ℙ𝕃?