$1.46 15.65%
AMPL · 17w

How do I lose money investing in Ampleforth ?

Hello, still trying to wrap my mind around the concept of AMPL.I think I got it right, but what scares me a little is that i'm not sure I see what are the obvious traps I should try to avoid. Please bear with me as I'll try asking the right questions. It's a very confusing new universe for me to wrap my head around so any explanations will be very much appreciated :) 1. Basically, my gains are indexed to the growth (positive or negative) of AMPL market cap over time ? +100% market cap = +100% AMPL in my wallet, correct ? 2. So... what are the mechanisms that push AMPL market cap upwards ? Is it only because price increases because offer being low & demand being high ? What AMPL can / will be used for ? Is it a stable coin one can use to hedge against bear market or BTC falling for example ? Can it be used for lending / earning interests ? 3. So what mistakes can I make when buying AMPL ?Is there a bad moment to buy AMPL ?Should I buy when the price of AMPL is high (expecting increase of total supply => proportionate increase of my supply), or should I buy when it's low in order to get more, expecting the price to bounce back higher ? 4. How do I get rekt ? Is there some mechanism / phenomenon that poses risk of liquidation, or being rekt in some way ? Can it suddenly go to zero (price or quantity) ? What could black swan events be ? Worst case scenario, apart from gvts deciding it's unlawul ? 5. Then about strategy ? Since there's no compounding effect (since gains are not based on price), there's no benefit in hodling long term ? I'd better sell my excess AMPL at rebase, in the eventuality it could get slashed later ? Is this the correct reasonning ? Thanks a lot. Sorry for the wall of text.
Go to self.AmpleforthCrypto
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