Beginner Coin Introductions
Newcomer Analysis: Ampleforth
Current Market Cap: $179,583,045
Ampleforth describes itself as a decentralized and algorithmic cryptocurrency. Its unique value proposition is that it can be used to denominate stable contracts.
The “Rebasing Cryptocurrency” works by trading off price-volatility for supply-volatility: while the supply of amples will fluctuate, the price will always close at $1. Therefore, Ampleforth can be used to denominate stable contracts, unlike Bitcoin which is excluded due to its price-volitility
Ampleforth argues that fiat collateralized stablecoins (USDT, USDC) rely on centralized banking partnerships and debt-marketplace derived stablecoins (DAI) cannot be sustained by “free market incentives and rely on periodic bailouts”.
Therefore, Ampleforth offers a truly decentralized vehicle that does not rely on centralized collateral or lenders of last resort. Ampleforth can additionally be used in contracts.
My bias: As a current stable coin alternative, I majorly favor Ampleforth. It has relatively low market capitalization and public awareness and I truly believe it is more decentralized than current competitors. For those reasons, I believe the future is bright for Ampleforth, at least in the long-term.
References:
https://coinmarketcap.com/ https://www.ampleforth.org/
Disclaimer: I am by no means a cryptocurrency professional. I am a BS in Finance and approach my analyses through an economic and financial point of view. I do my best to integrate all current relevant information into analysis.
