There should be no surprise FORTH, Amplforth's governance token did not pump as many expected it to on May 4th for Star Wars Day. Speculation arose on Twitter that some news would come out on May 4th that would help push the FORTH token much higher in price, and to the disappointment of many holders, this was not the case.
So, what happened?
No one should be surprised at the massive selling pressure on FORTH. First off, a ton of airdrops were just sent out to thousands of people. The only catch was users has to have interacted with the AMPL network at some point, and, as it turns out, a number of PUBLISH0X users were awarded airdrops due to them receiving AMPL tips on this platform. It is not surprising that many of these individuals chose to sell off their thousands of dollars in awarded FORTH for other assets.
In addition to this, the FORTH listing on COINBASE is accompanied currently by the free $3 in FORTH for completing lessons on the platform. Tons of new users join Coinbase all the time, and the first thing these people are doing is selling those free rewards. So, the massive selling pressure makes sense when you are able to combine the weight of these factors, the factors being the selling of airdrops, the free rewards, and the disappointment from some holders that were expecting a pump.
Why I am Still Holding FORTH
I did not receive an airdrop. I originally heard about AMPL + FORTH periodically in different instances around the crypto space. The governance and economics of AMPL is what really caught my attention. The token economics of AMPL allows for the better engagement of many DeFi applications and is on track to be the first truly decentralized medium of exchange that can be utilized as a safe store of value without having to worry about massive volatility or collateral from third parties.
I believe that the pump & dump money immediately leaving FORTH is a good thing. If money is only entering the space with the expectations that it will just pump like crazy, what does that money do after the pump does come? It cashes in and leaves, promoting a price crash or "dump" leaving many to take on big losses and hurting the long term growth of the coin.
I bought into FORTH because I believe in the economics and strategy behind AMPL. The technicals for the price action of FORTH does show medium and long term promise for a rise in price. FORTH has found some strong support just about $37 and has made higher lows in the past several days. It is easy to see how FORTH did not pump yesterday and miss that is up nearly 11% in the past week. The long term technicals are looking more bullish, and with 85% of listed wallets via Coinbase selling FORTH, I am adopting the greedy when fearful strategy.
If you invested in FORTH without learning about how AMPL and FORTH collaborate together and what they are, chances are your strategy isn't going to work often. Learning about Amplforth first is the only first step that should be taken before deciding to buy into either AMPL or FORTH, and this goes for any cryptocurrency. It can be difficult to look past the noise a lot of the time. With the absolute explosion in coins like dogecoin, many have been looking for the get rich quick pick up coins. I prefer to sit back and enjoy some long term steady gains, and I plan to do that by holding onto AMPL and FORTH in the medium to long term. When it comes to FORTH, if you believe in Amplforth and the economics of this protocol, then hold. If you don't, then sell!
Check me out on Twitter: @ztlorance
This is not financial advice. Do your own due diligence before deciding to invest in anything, including FORTH.
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