Ampleforth is the 2nd tipping token used by Publish0x. It uses a special rebasing to keep the value stable. So how has it performed?
For a coin rebasing to stay stable, it has performed pretty well over the last year with a 56,6% increase.
Looking further we can see that over the last year, the price has been in the contraction threshold and the price is often quite below its price target. This is confirmed by the falling market cap.
How does this look for the future?
It shows that the rebasing is working with the contraction but the falling market cap doesn't seem a good sign for the long term progression of the token.
We have seen a run-up from the recent low in the last month giving a 26,5% return.
However, this is still not enough to break through the expansion threshold. Most of the momentum has been in the last weeks in which all cryptos seem to be moving upwards.
Ampleforth could be worth holding if you want to limit your downside, but there is probably no upside from holding Ampleforth. To act as a stable coin is the purpose here, even though it is quite volatile.
What strategies could we play with Ampleforth?
You could buy and hold Ampleforth and it is likely to retain its value. Whether that's invested from fiat or other cryptos, or whether you earn Ampleforth. But there probably isn't likely to be much upside due to the rebasing.
If you are following a growth strategy, the options are to convert to some growth coins like Bitcoin and Ethereum. For passive income seekers, probably some stable coins would be a good option.
I think it is a good tipping token and works as expected, but I think there are other tokens that make more sense to hold longer-term.
Thanks for reading.
Please note this is not investment advice and only for educational purposes.
Resources
https://www.ampleforth.org/dashboard/