Initial launch of Ampleforth digital currency
Ampleforth digital currency was able to raise about $ 10 million in two initial public offerings (ICO) and one initial public offering (IEO). This funding happened in 2018. The initial public offering of the exchange took place in 2019 and led to sales of $ 4.9 million in 11 seconds. The total number of AMPL tokens offered in these three offerings was 16 million tokens.
How does Ampleforth digital currency work?
One of the strange things is that this digital currency is one of the decentralized financial projects that is technically much easier to understand than it is conceptually. In short, AMPL supply is adjusted daily to meet demand through a smart contract. With the help of Oracle price chain, this smart contract receives price data from digital currency exchanges such as Bitfinex and checks that the market price for AMPL is in the range of $ 0.96 to $ 1.06. This is called the allowable range or range and is about 5% of the value of $ 1.
If the amp price is higher than this range, the supply increases and if it is lower than this range, the supply decreases. These two states are called expansion and contraction, respectively. Expansion and contraction will continue until the AMPL token price returns to the allowable range.
This change in supply is done gradually over 10 days to prevent unnecessary price correction. As mentioned at the beginning of this section, the estimated supply change is recalculated every day.
Ampleforth digital currency prices
The reason why the price of Ampleforth digital currency has remained so volatile is that the token supply has outperformed the price range at which the protocol could adjust its supply. The reason for this is that this protocol modifies the overall supply of AMPL in the same way as it was originally intended, and such cases of high price outages are not initially considered, which is one of the major drawbacks of Ampl Force digital currency.