How do we know Ampleforth is not a ponzi?

[Emperor of Man]

Hi all.

Ampleforth has had a great hype recently, and today I did some research on it. The ethics of something like this is a problem for me, and I'm discussing it to understand it better.

As you know, a ponzi scheme is a fraud in which the system pays profit to the early investors using some of the money it takes from the late investors. Now, doesn't ampleforth look like one?

AMPL says the project changes the total supply of the coin when the supply/demand changes. So if the price rises they increase the total supply (and give every wallet new coins) and if it falls they decrease the number of supply and everybody's coins. This video explains it well if you want to know the system:

https://www.youtube.com/watch?v=e-8yjmsshFg&feature=youtu.be


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Now, the coin used to have a circulating supply of about 1,638,000 at the beginning of 2020, then at the beginning of July 2,525,000 and now after a few days of price rise the supply jumped to 296,000,000!!

What does it mean? Huge gain for early investors. But what about the new investors who bought it for $3-4 a few days ago? The coin probably won't be able to continue like this (otherwise its marketcap surpasses BTC in a few days), so probably a huge sell-off mostly by the old investors who have the most AMPL tokens now takes the price to <$1 range and subsequently the supply decreases, and the marketcap will correct to more rational numbers.

Now, what happens to the new investors? What if the coin stays in <$1 range for a long time? They lose a huge amount of money, right?

[bitstalker]

Hmm, it seems like what you're saying makes sense because right now dump that is happening on AMPL is pretty awful going down short from $4 to $1.20 less than a week, this seems strange, but what I'm confused about is AMPL is DeFi project, maybe the chance that token can touch $4 again is by using DeFi hype, but will this hype survive?

[cryptoaddictchie]

Now, what happens to the new investors? What if the coin stays in <$1 range for a long time? They lose a huge amount of money, right?

Obviously got rekt. I checked also them cause a lot have been talking about this project. They have a promotional airdrop/staking everyday with different percentage as long as you hold your coin on the wallet or kucoin exchange. But the thing is after payout the token usually dumped afterwards. I still saw it at $1.5$ but now its $1. Possibly it could go down more.

maybe the chance that token can touch $4 again is by using DeFi hype, but will this hype survive?

This ia not a good way to boost a project. They can used or incorporate defi, but relying on hype is like begging to the market to buy your coins. Ampl should improve their system to get more demand not due to hype.

[elda34b]

Yup, early investors got profits in a ponzi-like way. Lots of rekt plebs submission already got updated showing how they got rekt from buying it at $2, etc.

Ponzi or not, their tokenomic is terrible. Avoid them.

[Akiko]

Its strange ,how they can add more supply in just short period of time ? From staking?
 Those project that give passive return in investors  using the tokens is not a good investment it will collapse  if they continue adding more supply.


Old investors are now able to claim their profit while newly investors will lose in it if they try to Invest . Adding supply means reduce the price of currency and no one can support the price of it  in long  run ,even how good they promise the return would be. They can't support that price all the time and will surely crash one day when no one else buying the tokens.

[makishart]

Is there a reason why the circulating supply and total supply was growing drastically? what i can see from the TG group if some people said the the dev and early investors were controlling a lot of coins.

If the team using that mechanism and this is a ponzi coin. If they can change the total supply means the team can change their premined coin too. This is the worst mechanism that i have ever seen.

Crap coin

[benthach]

no

[Emperor of Man]

Is there a reason why the circulating supply and total supply was growing drastically? what i can see from the TG group if some people said the the dev and early investors were controlling a lot of coins.

If the team using that mechanism and this is a ponzi coin. If they can change the total supply means the team can change their premined coin too. This is the worst mechanism that i have ever seen.

Crap coin

It's because of the rebase function. Basically they say by paying for their token you buy a percentage of  the marketcap, so when the price (and the marketcap) goes higher you get new tokens to keep your percentage of the marketcap (and the price stays around $1.009, the target price).

Watch the video I provided in the OP if you need a more thorough clarification.

The strange thing is, what did the rebase function do to the circulating supply in a few weeks (from early July to now). And as I predicted the price is now under $1.  

no

Thanks, very comprehensive. 

[coinswebid]

did you mean this ampleforth my friend https://coinmarketcap.com/currencies/ampleforth
i think this is good altcoins, because this alts stand as the TOP 50 coins at coinmarketcap, the exact rank is 40 for now
and as i knew only a good altcoins project can be there my friend

[Tipstar]

did you mean this ampleforth my friend https://coinmarketcap.com/currencies/ampleforth
i think this is good altcoins, because this alts stand as the TOP 50 coins at coinmarketcap, the exact rank is 40 for now
and as i knew only a good altcoins project can be there my friend

Bitconnect was for some time the 3rd coin by marketcap. Market cap is not a measure of goodness.
I haven't exactly studied about Ampleforth but if the change in price is the only reason for it to increase or decrease the price than it's surely a ponzi. Change in supply can be justified on coins that are freezing or releasing another coin or fiat to accommodate the price. There need to be value that should determine the price, not the other way around.

[zombi11]

Play short on alts.

[studio1one]

Since coinbase is considering adding Ampleforth I think we can assume that they are not a Ponzi project because coinbase is not known for adding ponzi projects to their exchange.

[Akiko]

Since coinbase is considering adding Ampleforth I think we can assume that they are not a Ponzi project because coinbase is not known for adding ponzi projects to their exchange.

They only considered it but not yet official that they Will list that currency there still more things need review before they can add it in their wallet.

 that adding supply can also be factor not to accept it  in their platform.unless they already understand how this things work and they know that it is not so risky for people to invest in that currency.

[xOdiumNostrumx]

I mean it definitely has characteristics of a ponzi, but at the same time it has strong backers and HQ team. Coinbase CEO is its early investor as well if I recall correctly, so maybe there is something to it and it is not a blatant PnD scheme. With daily volumes of over 100 M its definitely an attractive choice for listing on bigger exchanges, so I wouldn't be at least surprised if it lists on Binance or Coinbase in the near future, regardless the opposition of "naysayers".

[studio1one]

Ampleforth is a bit hard to understand at first but once you know how Ampleforth works you can actually make a decent profit out of it but at the same time, it could be a risky investment for guys who are new to the project.

[Cyplyakox]

Ampleforth announced the launch of the Beehive 2.0 program, the launch was last September 10, the Reward Fund allocated 1% of the total amount of AMPL tokens https://www.ampltalk.org/app/forum/announcements-22/topic/ampl-geyser-beehive-2-118/?utm_source=AMPLTwtr_Beehive2_day_before_9_9_20&utm_medium=AMPLTwtr_Beehive2_day_before_9_9_20&utm_campaign=AMPLTwtr_Beehive2_day_before_9_9_20&utm_content=AMPLTwtr_Beehive2_day_before_9_9_20

[noorammak]

Ampleforth is making more money, insanely, the way it works like a bank, whenever its price goes up, it replenishes the supply. It goes back to bitcoin or other mining cryptocurrencies. I wouldn't invest in a project like this. Bill Drummond's Antiample project I find more unique.
https://coinmarketcap.com/currencies/antiample/

[wmaurik]

Ampleforth is making more money, insanely, the way it works like a bank, whenever its price goes up, it replenishes the supply. It goes back to bitcoin or other mining cryptocurrencies. I wouldn't invest in a project like this. Bill Drummond's Antiample project I find more unique.
https://coinmarketcap.com/currencies/antiample/

Actually, I don't like Ampleforth and don't care about this project, but what is a difference with Antiample? and also, is it okay to invest in a project that has an anon team? , whether if Antiample succeeds in beating Ampleforth, Antiample will reveal the team or not at all?

[noorammak]

Ampleforth is making more money, insanely, the way it works like a bank, whenever its price goes up, it replenishes the supply. It goes back to bitcoin or other mining cryptocurrencies. I wouldn't invest in a project like this. Bill Drummond's Antiample project I find more unique.
https://coinmarketcap.com/currencies/antiample/

Actually, I don't like Ampleforth and don't care about this project, but what is a difference with Antiample? and also, is it okay to invest in a project that has an anon team? , whether if Antiample succeeds in beating Ampleforth, Antiample will reveal the team or not at all?

No Antiample is only created for privacy purposes, he is a freelance developer. He created some unique tokens that you might be interested in. He has a lot of fans, you can follow him here:
https://twitter.com/burn_the_state