The Ampleforth [AMPL] token was sold in Bitfinex’s first IEO, raising approximately $5 million in 11 seconds. The token has been considered by many to be a stable coin but it, in fact, it is quite far from being one.
The whole stablecoin confusion is due to the fact that the AMPL token’s price hovers at a target value and holders of the token holders get more tokens if the price surpasses the set equilibrium and remains there.
The token has many differences in terms of concept when compared to the top 10 cryptos on today’s market. MapleLeafCapital, a proxy created to keep the quality of block producers in the EOS ecosystem, expressed his opinion regarding the AMPL token and pointed out some issues.
In the Twitter thread, it is stated that:
“Whilst with a novel token mechanics, it [AMPL] is anything but stable (faaaar from it, and may not be so even at scale). The somewhat misleading signals might fool many initially, but it’s great trading sardine!”
According to the whitepaper, if the price of the token passes the…