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Read the principles and investment strategies of AMPL in one article



Recently, with BTC fluctuating sideways, Ethereum and other mainstream currencies are also in a similar market, but AMPL, a relatively ancient currency, has been inflated for many days. As shown below:

From October 17th to 18th, 2020, the supply (supply) will continue to increase

Amplforth (AMPL) is indeed a very innovative currency. During the DeFi frenzy in August and September this year, the term "Rebase" was the concept proposed by AMPL and put into practice, and the practice was very good. Later, the most famous imitation disk was YAM. Looking at the name, you can know that YAM means YFI+AMPL, so it is called YAM, but it happens to be a vegetable and fruit name. Later, the farm currency is for fruit and fruit, not to mention.

The so-called rebase can now be simplified to understand, that is, the coins in the wallet will increase and decrease. If it is higher than 1.05, it will increase. There is less motivation to buy, and the price will go up.

Meiya Pico: It has cooperated with the Supreme Law to build a blockchain and is one of the nodes of the chain: Jinse Finance reported that Meiya Pico said on the interactive platform on October 18 that the company has cooperated with the blockchain built by the Supreme Law. One of the chain nodes. The blockchain of the people's court is used to fix the evidence after the evidence collection. The functions of the Meiya Pico Evidence Cloud have certain overlaps with it, but more functions of the Evidence Cloud are reflected in the extraction of evidence from different media in different scenarios before going to the chain, and evidence in Applications in more scenarios including litigation. [2022/10/19 17:31:37]

Remarks: In other articles, some mentioned that 10% inflation started every day at 2 US dollars. They did not say the reason. Let me say here that 2 US dollars is twice the target price of 1 US dollar. At this time, it exceeded the target price of 100. %, under the rule of 10-day inflation and deflation, 100% ÷ 10 days = 10% per day - this is a theoretical value, the specific daily inflation depends on the dashboard of the official website, which has a detailed introduction, and the screenshot is as follows. Official website address:

BTC perpetual futures open interest on Deribit reaches 1-month high: Jinse Finance reported that according to Glassnode data, BTC perpetual futures open interest reached a 1-month high on Deribit with a value of $461,701,010 . [2022/9/22 7:14:16]

Let’s take a look at the recent inflation situation, the link below:

The red arrow has been marked, the price of the oracle machine is 1.64$, and the target price is 1.021$. Of course, some people say that AMPL is the favorite of gamblers, but it is not true. The favorite of gamblers must be 100 times + leverage. This is still too slow.

Algorithmic stablecoins have an average increase of 0.86% today: Jinse Finance and Economics quotes show that algorithmic stablecoins have an average increase of 0.86% today. Among the 8 currencies, 4 rose and 4 fell, among which the leading currencies were: BAC (+8.51%), ONS (+7.82%), AMPL (+0.31%). The leading currencies are: BAGS (-5.73%), MITH (-2.20%), and LUNA (-1.77%). [2021/10/17 20:35:38]

The above two pictures are price deviation percentages and unstable stablecoins. To be honest, when I was born in science and engineering, I was quite comfortable when I saw this line-it really looks like an electrocardiogram.

Bitcoin mining company CleanSpark purchased 4,500 S19 ant mining machines: According to news on October 12, Bitcoin mining company CleanSpark has purchased 4,500 S19 ant mining machines. Deliveries began in July 2022 and are scheduled to be completed by July 2022. In addition, it is estimated that after these mining machines are fully put into operation, their sustainable Bitcoin mining capacity will increase by 450PH/s, which is equivalent to nearly 45% of the current computing power. At present, the company operates more than 10,000 mining machines. There are 24,580 mining machines to be delivered in the next 12 months.

As previously reported, CleanSpark spent $6.6 million to acquire its second data center in Georgia in August, and announced in September that it would spend $145 million to transform the data center into a carbon-neutral mine. [2021/10/12 20:23:59]

Technically, AMPL is a stablecoin. "Elastic supply" is just naming a mechanism behind it. But this stable currency will not be very stable for the time being (or for a long time in the future). It is because of the instability that there is room for arbitrage, and it is because of the existence of arbitrageurs that the price will be reversed. As a result, a price deviation curve like an electrocardiogram appeared.

After understanding the rebase and ECG, you are smart enough to ask a question. If the price drops to 0.5 US dollars, then everyone loses interest in AMPL and no one buys it. Then, in order to keep the currency price "stable", rebase will be carried out.

For example, suppose you have 1,000 coins in your hand. In the case of stable coins, it should be 1,000 US dollars, one US dollar each, and now one becomes 0.5 US dollars. At this time, it will be rebase within 24 hours, and rebase within 10 days. Your 1000 coins will become 500 coins, so there is 500 US dollars left, but one coin is still 1 US dollar. The currency price has not changed, but the number of your currency has decreased.

Then, you think it’s time to stop the loss and sell these coins. Many people also sell coins as you think. The price drops further, and the number of coins is still decreasing every day.

Total value = currency price * number of coins.

The two parameters fall at the same time, resulting in an accelerated decline, which is the death spiral.

The above content-zce can be understood in reverse. When the currency price is high, an upward spiral can also appear. So the death spiral and the ascending spiral are mirror images, and if one understands the other, then one can understand it.

The reason why the market always hears the "death spiral" is simple. This word is cooler than the upward spiral.

Whenever you buy AMPL, if you do not move these coins, the ratio of the amount of AMPL you own to the total supply or total amount of AMPL remains unchanged. Therefore, long-term holding is of course when the price is low. When the price is low, the total quantity is often small, and the proportion of the same funds obtained is high. As long as the death spiral does not continue, future gains can be expected. Note that the fact that a death spiral will not happen is based on experience and cannot fully predict the future.

The short-term investment timing of AMPL is fine if it falls below 0.9 US dollars, and it is also OK if it rises above 1.1 US dollars. Now is not a good time to enter the market.

Those who have already entered the market can exchange their principal, and the remaining coins can be held to watch its performance. If the long-term investment can be bought more and more as it falls (because your proportion of buying at any time remains unchanged), hold it lightly. Because the death spiral failed to kill it many times, it may not die next time. If you don't die, at this time, the proportion of buying at a low price is constant, and it will be fine as the total market value expands in the future.

I personally prefer to build positions in batches after falling below 0.9. Overcome the death spiral and expand the proportion of currency holdings.

Of course, for large investors or professional investors, they pay more attention to the proportion of coins they buy. For example, if you buy 1 million coins, the proportion is 0.264%, because the official website shows that the current total is 378.89 million (million). As shown below:

After ten o'clock in the morning next year, the total supply will increase, and it is currently in the inflation stage.

This article starts from Rebase, to the price fluctuation curve (ECG), to the principles of death spiral and upward spiral, and finally gives the basic investment strategy based on these principles. Of course, it is not a high-level game. Senior players can deduce intraday trading based on the basic principles For arbitrage, you can also do AMPL-related options.


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