The Dark Side of Rebase Tokens

The Dark Side of Rebase Tokens


There is no doubt that in this universe more than 99.9% care much about money than anything else because without it their future is bleak. Of-course we need money for buying daily needs and wants  but the most important thing is making sure that your future savings investments are safe and promising big.

Imagine you buy certain stocks and hold them for a few year and only to check and see that they did not gain much or maybe they lost value and or maybe the price is now higher but you no-longer have the same quantity you purchased earlier. There is no doubt that this is so devastating.

How is Rebase Tokens related to this Scenario?

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Rebase Tokens have been designed in a way that they have an Elastic Supply which respond on how the price is moving in relation to demand. We know whenever there is too much demand and less supply then the price will sky rocket and when the demand is so low and too much supply then the price will hit the ground running.

Just to prove this if you look at AMPLEFORTH you will see that whenever the price is booming the supply will increase and the price will wither, that is how it was designed.

How rebase tokens are a disadvantage?

If you go on AMPL dashboard you will see that its suppose to maintain a value of $1.04 per coin and if the price goes above that price level then another supply will be injected in the market to dilute current supply so as to contain the price through what is called positive rebase and if the price stays below that projected level then the supply is always deducted in the market through negative rebase.

All these processes affect the size and number of tokens in our wallets, e.g you bought 100AMPL and the price per token is above $1.04 you might see your wallet with 101AMPL and if the price stays below $1.04 then you might see your wallet balance as 98AMPL.

Imagine you bought 10 cows for $1000 and $100 per each cow and the prices of cows sky rocket to $500 and the government says we are taking 8 cows from you because you have to maintain you cattle value at $1000. Its obvious you wont succeed in this cattle business because the government is always on you neck, this is what exactly happening with rebase tokens there is too much controlling.

Conclusion

Just to be short and prices where not designed to make any of us richer, instead they have their own purposes because if the price is going up then your quantity is reduced. So you can clearly see that you will never say goodbye to poverty if you invest in rebase tokens, instead go for those volatile tokens which do not have elastic supply.

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Defiant Pathfinder
Defiant Pathfinder

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Defiant Pathfinder
Defiant Pathfinder

I am Unstoppable & Unpredictable

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