The ethics discussion / How do we know it's not a ponzi?
First of all, I mean no disrespect to the project and its fans, but this is something that makes me not want to invest in AMPL. I'm discussing it so that I understand it better.
As you know, a ponzi scheme is a fraud in which the system pays profit to the early investors using some of the money it takes from the late investors. Now, doesn't ampleforth look like one?
AMPL used to have a circulating supply of about 1,638,000 at the beginning of 2020, then at the beginning of July 2,525,000 and now after a few days of price rise the supply jumped to 296,000,000!!
What does it mean? Huge gain for early investors. But what about the new investors who bought it for $3-4 a few days ago? The coin probably won't be able to continue like this (otherwise its marketcap surpasses BTC in a few days), so probably a huge sell-off mostly by the old investors who have the most AMPL tokens now takes the price to <$1 range and subsequently the supply decreases, and the marketcap will correct to more rational numbers.
Now, what happens to the new investors? What if the coin stays in <$1 range for a long time? They lose a huge amount of money, right?. .