Like any experiment, it is called Ponzi scheme, scam, money grabber, paradigm changer, new bitcoin, etc. I’d still maintain it is an experiment and hard to understand. So, the price changes and supply is elastic using rebase (calculated algorithm).
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As an investor, one gets scared that stable coin value can get changed but in real world it does happen. It is called inflation. Our educational system is programmed so that we don’t realize this. This is one of the key reasons which propelled $BTC into existence.
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As a trader, there are several ways to play $AMPL. Easiest way is to buy, hodl and stake in geyser. 52% APY plus compounding due to rebase and the price increase over last two weeks would approximately give 11x the initial investment. Thanks to for this
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Next way is to take advantage of rebase timing. Two approaches are possible. Buy after rebase (as long as rebase is positive) as there is price drop and sell before next rebase. This is a gift for day traders as the swing is atleast 10-30%
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Second method is to buy before rebase and sell parts after rebase as the holdings increase. This is a Conservative approach and more like Dollar Cost averaging.
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There are also ways to get rekt like the black swan event in march. Negative rebase will reduce supply as price if also continuously falling. It would be double whammy.
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Any insights regarding why this is proof that Ampleforth is a ponzi?
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>[investors] remain unaware that other investors are the source of funds. A Ponzi scheme can maintain the illusion of a sustainable business as long as new investors contribute new funds.
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I’m confused isn’t this true of almost every token? That investors are the main source of funds? Other than like exchange tokens.
Not really. In the case if $AMPL, the token itself isn't a ponzi, but the incentivised "geyser" LP scheme is. How can 3.5k wallets be worth 250m, when the token is not used as collateral for anything? Imo should be investigated.
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you havent read the red book, stoo spreading blatant allegations and misinformation