Ampleforth Price Chart Update [AMPL]

Ampleforth is a token created on the Ethereum blockchain with the goal of maintaining a stable purchasing power. It operates on the Ethereum network and encourages users to hold a cryptocurrency asset that has a value equal to the U.S. dollar.

Stablecoins are a form of cryptocurrency that achieve price parity with other assets using various methods. For instance, DAI is backed by asset baskets locked in the Maker protocol, while USDT is backed by dollar deposits in a traditional custodian.

Unique Features of Ampleforth

AMPL is a digital currency that adjusts its supply based on market conditions. It acts as a decentralized protocol that increases or decreases the existing AMPL tokens in circulation depending on the current market conditions.

Although AMPL is often mistaken for a stablecoin, it is not. The protocol aims to maintain a relatively stable price around $1, but its value is not pegged to the US Dollar. Instead, the protocol adjusts the supply of AMPLs in the market to increase or decrease its current market price.

Supply Adjusted without Dilution

Unlike traditional fiat money-printing, AMPL does not dilute the holdings of individuals when more tokens are needed. If additional AMPLs are required, they are supplied, but the adjustments are applied universally and proportionally across all wallet balances. This ensures that the percentage ownership of the network remains fixed, similar to Bitcoin.

Solving the Inelasticity Problem of Bitcoin and Gold

Unlike Bitcoin and Gold, AMPLs do not have a predetermined supply limit. This means that the supply can increase as necessary. This solves the inelasticity issue faced by store of value assets like Bitcoin and Gold, making AMPL a viable medium of exchange as well.

Scalability

According to the project's Whitepaper, the Ampleforth Protocol is compatible with multiple blockchain platforms. While it is currently deployed as an ERC-20 standard token on Ethereum, it has the capability to exist simultaneously on various platforms.