Ampleforth
$0.74916 -9.34%
AMPL · 4d

What happens when an entity buys amples ? (A theorical case study)

The equation Ample network value = ampl gdp = ampl market cap = ampl market value = ampl economy = $400 millions (latest data) Assuming the entity wants 20% of ample network which means 20% x $400 millions = $80 millions So he needs to put a buy order of $80 millions Case 1(assuming no one put a buy order except the entity and no one put a sell order for infinity time ) Timeline 1.the price will approach infinity as time approach infinity 2.as price approach infinity rebase will approach infinity to force stabilization of price 3.because everyone hodl both price and rebase will approach infinity 4.the entity will never acquire 20% of ampl network until infinity time Case 1 possibility = practically impossible Case 2(assuming no one put a buy order except the entity for that time and 9 amplers (ample hodlers) put 9 sell orders worth $80 millions) Timeline 1. The entity's demand perfectly meet the supply ,the entity successfully acquires 20% of the network at $80 millions total purchasing price 2.price stays the same 3.no rebase happens Case 2 possibility = practically impossible Case 3(assuming no one put a buy order except the entity while 4 amplers put a total sell orders worth $40 millions) Timeline 1. The entity only successfully acquire 10% of the network not 20% 2. Price will increase until some holders give up and sell their other combined share of the network (10%) 3. Rebase will increase to pressure some holders to profit asap 4. Both price and rebase will approach infinity 5. The entity gives up and cancel the other 10% network buy order because of the ever increasing price and wait until price fallback to normal 6. Jump to case 4 Case 3 possibility = possible Case 4(assuming no one put a buy order except the entity and the 7 amplers put a combined sell orders worth $160 millions) Timeline 1. The entity waits from buying the 20% network share considering the fall in market cap 2. The price falls due to sell order...
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