What is Ampleforth
One of the biggest problems facing cryptocurrencies today is their heavy correlation to Bitcoin. While the crypto market has come a long way in development over the last ten years, prices still follow Bitcoin’s price action. A dump in the price of Bitcoin almost always guarantees the same in the price of the altcoins market. This poses a risk to the long-term development of the market because it could ultimately starve high-potential projects of investments. That’s because the crypto market as a whole is still a volatile, high-risk environment. Therefore, if investors can get a return on their money by investing in bitcoin, there is no point in seeking investments in altcoins, which are even riskier with the possibility of bigger losses in case the market dumps. In this environment, the only way for the market to grow is by using a different valuation approach where a correlation is not the basis of price. Ampleforth is a crypto project that offers this solution. The Ampleforth protocol reacts to market fluctuations by algorithmically changing the supply of AMPL tokens based on the prevailing nominal exchange rate, rather than the price. This gives investors a chance to build a portfolio that is not entirely driven by the price of Bitcoin.
