Ampleforth Report Blockfyre

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1. SENTIVATE REPORT BY BLOCKFYRE | PAGE ‹#› BLOCKFYRE
2. Executive Summary • Highly unique and innovative approach • Flexible supply that adjusts to the market demand, while price finds equilibrium at 1$ • Aims to tackle the strong correlation amongst cryptocurrencies, but also amonst traditional asset classes • Strong team with background from Berkely, Yale, Google, Uber • Impressive advisors from Harvard, Stanford, Oxford, MIT, Pantera Capital • Big investors such as Brian Armstrong (CEO of Coinbase), Huobi Capital Highlights Risk & Concerns • Ampleforth’s level of innovation and uniqueness makes it a highly experimental project and hence a highly speculative investment • Adoption will be a maker or breaker here, which is quite ambitious with Bitcoin as main competitor Ticker AMPL IEO Price $0.98 USD Pre-Sale Price $0.33 - 1 USD Initial Market Cap $4.9 Million Initial Circ Supply 5 Million AMPL Total Supply 50 Million AMPL Token Type ERC20 Website ampleforth.org Ampleforth aims to provide the next generation of synthetic commodities, which may ultimately result in an independent new asset class for the diversification of each portfolio. While the supply is flexible and price constantly finds an equilibrium, AMPL comes with monetary use value. Overview
3. What problem does it solve? Fundamental Problem: Scarcity vs Use Value x • The current FIAT system is sick. FIAT money isn’t backed by anything else than the government’s ability to force its use. As a consequence, FIAT money is highly centralized. Thus, it has monetary use, but it doesn’t show absolute scarcity. Government’s central banks can decide to further print FIAT, going hand in hand with the risk of (hyper)inflation, in the worst case leading to an economic crisis and threatening people’s life savings and existency. One of the most well-known examples for that might be Germany’s hyper- inflation in the 1920s. • In order to have more financial independency and safety, it’s obviously recommendable to invest and diversify your wealth. Commodities are simple goods, such as energy (crude oil, gas), food & agricultural (corn, soybeans, cotton) but especially precious metals (copper, silver, gold). Although commodities are of non-monetary use, they are scarce, which differentiates them from common FIAT money. • Even though commodities are a good tool to diversify your portfolio for safety’s sake, they still have their backflaws. Commodities are usually negatively correlated with stocks and bonds, and hence correlated with the overall market. In general, a financial instrument, with monetary use, but still absolute scarcity would be ideal. Source: Blockfyre Research | Ampleforth Whitepaper
4. What problem does it solve? Bitcoin as Synthetic Commodity x • Bitcoin is one of the most prominent examples of synthetic commodities. While BTC could have monetary value, different to conventional commodities such as precious metals, it is still absolutely scarce. As BTC is highly decentralized and secured within a cryptographical ledger, it is distributed throughout the whole world. As a consequence, based on the underlying mathematical protocol, it can be guaranteed that the total supply of BTC will never exceed 21 million units. • Remarkably, BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for porfolio diversification, in order to tackle marcoeconomic recession. • However, today’s existing synthetic commodities, such as cryptocurrencies, are highly correlated with each other and especially with Bitcoin. So while synthetic commodities are an interesting instrument to diversify traditional portfolios consisting of the overall market, it’s hard to diversify within cryptocurrencies themselves, as they are almost always highly correlated to the BTC performance in general. Source: Blockfyre Research | Quora, theblockcrypto.com Correlation
5. Ampleforth’s solution Concept • With introducing a highly new and unique approach, Ampleforth is trying to solve the aforementioned problems of FIAT and traditional asset classes, but especially the high correlation amongst synthetic commodities with one and each other. • When Bitcoin was created 10 years ago, it created a whole new space. Nowadays however, there exists the necessary data information and infrastructure, as well as new technological opportunities, to tackle todays problems with Bitcoin. • Unlike all other asset classes existing so far, Ampleforth introduces an uniquely innovative approach, with which they create an asset class that comes with flexible supply, while the price will remain rather stable. As a result, Ampleforth’s protocol allows the supply to flexibly adjust to the current demand of the market, while being neither in- nor deflationary. x • The Ampleforth protocol will always find a price-supply equilibrium by adjusting the price due to demand. • The Ampleworth whitepaper gives the following simple example to illustrate that: - Equilibrium 1 : Alice has 1 Ample worth $1 - Demand Increases : Alice has 1 Ample worth $2. - Equilibrium 2 : Alice has 2 Amples each worth $1 • It needs to be emphasized, that these price- supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same. Example Source: Blockfyre Research | Ampleforth Whitepaper
6. How the protocol works x Source: Blockfyre Research | Holochain Website Expansion / Contraction • Before the supply expands / contracts, the price needs to increase / decrease before. However, not every tiny price fluctuation will initiate that. In fact, the price needs to increase / decrease by the factor δ, in order to pass the threshold and impact the supply change. • Trusted market oracles from the outside provide the Ampleforth protocol with price-information and exchange rates. • Out of these price data information, a weighted average over the past 24 hours is formed and calculated into an expansion / contraction coefficient • This in turn is then automatically propagated to all AMPL holders, whose supply will adjust proportionally to the current market situation. • All these information will be publicly visible on the Ampleforth Dashboard. So everyone will always be able to see if a supply change will occur, and to what extent. Besides, also all operations will be stored and timestamped. Market Oracle Source: Blockfyre Research | Ampleforth Whitepaper
7. How the protocol works x Expansion • Adjusting the supply to the current exchange rates provides a very interesting and new opportunity to short term traders and fast actors. Between t1 (expansion initiation) and t2 (expansion termination), there is a short time window O during which the supply is adjusted, while the price remains at its higher / lower level. • While long-term holders won’t even notice these differences, short term traders could significantly exploit these effects. Assuming a price increase of 100%, this would mean 1 AMPL will be worth 2$ at t1 . At the peak of expansion O, this would mean everyone that held 1 AMPL during t1 holds now 2 AMPL at 2$, worth 4$. At t2 , price finds equilibrium again and everyone that held 1 AMPL at 1$ at t1 , will now hold 2 AMPL at 1$, worth 2$. Thus selling at time point O would result in a 300% return, in contrast to just holding AMPL, which would result in a 100% return. Source: Blockfyre Research | Ampleforth Whitepaper
8. How the protocol works x Contraction • The exact opposite happens with a price decrease, which displays a promising buying opportunity. • Assuming a price decrease of 50%, this would mean 1 AMPL will be worth 0.5$ at t1 . At the peak of contraction O, this would mean everyone that held 1 AMPL during t1 holds now 0.5 AMPL at 0.5$, worth 0.25$. At t2 , price finds equilibrium again and everyone that held 1 AMPL at 1$ at t1 , will then hold 0.5 AMPL at 1$, worth 0.5$. Thus buying at time point O would result in an occasion equally to a -75% loss, even though in reality AMPL declined only by 50%. Source: Blockfyre Research | Ampleforth Whitepaper
9. How the protocol works x Constant fluctuation • In reality, it will obviously be a constant interplay between expansion and contraction, as investors and traders are likely to constantly buy or sell AMPL, so a certain volatility is expected, just as with BTC as well. • As a result, it is likely that market speculators and traders will try to predict the upcoming equilibrium adjustment, hence adjusting their buy and sell targets accordingly • So in reality, the actual volatility fingerprint is expected to rather resemble the following: Source: Blockfyre Research | Ampleforth Whitepaper
10. Constant price increase x Supply Smoothing 0.00 250,000,000.00 500,000,000.00 750,000,000.00 1,000,000,000.00 0.00 $ 0.75 $ 1.50 $ 2.25 $ 3.00 $ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Price Supply Market Cap Price Market capitalization days • In order to avoid overcorrection, the supply adjustments that will algorithmically happen due to price changes, will be spread over time. To visualize the effects, we simulated how a price increase to 3$, constantly holding over the course of 30 days, will impact the overall supply and the market capitalization. While supply and market capitalization will start to increase rather slowly, the effect becomes cumulative over time and results in exponential growth. Overall return after 30 days amounts to 1849.64%. Source: Blockfyre Research
11. 0.00 12,500,000.00 25,000,000.00 37,500,000.00 50,000,000.00 0.00 $ 0.10 $ 0.20 $ 0.30 $ 0.40 $ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Price Supply Market Cap Constant price decrease x Supply Smoothing Price Market capitalization days • Interestingly, it is not the exact opposite with a constant price decrease to 0.33$. While the supply and market cap obviously keeps shrinking over the period of 30 days, the effect is not as significant as it is with a price increase. While a constant 3x over time gave almost a 2000% return, a constant 0.33x results „only“ in a 82.86% loss, which is an interesting indicator for the risk / reward ratio here. Source: Blockfyre Research
12. 0.00 75,000,000.00 150,000,000.00 225,000,000.00 300,000,000.00 0.00 $ 0.75 $ 1.50 $ 2.25 $ 3.00 $ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Price Supply Market Cap Constant price fluctuation x Supply Smoothing • More interesting and reality-reflecting it gets with a constant price fluctuation. For simplicity, we simulated the case that AMPL starts trading at 1$ on day 1, but then daily fluctuates between 3$ and 0.33$. In the end on day 30, price returns to 1$ again. Remarkably, this would still result in a higher supply and market cap, providing investors with 79.92% profit. days Price Market capitalization Source: Blockfyre Research
13. Market and Growth Potential x Cryptocurrency market Bitcoin Cryptocurrencies Gold Stock Bonds 0 8400 16800 25200 33600 42000 Billion $ Asset • Ampleforth aims to tackle the strong correlation amongst cryptocurrencies themselves. As of today, the whole market is strongly bound to what Bitcoin is doing, with an overall BTC dominance of 57.2%. • If Ampleforth might succeed in becoming an independent cryptocurrency for portfolio diversification, it would directly compete with BTC and its $165 billion USD market cap. Overall market • Unlike most of the other cryptocurrencies, we believe that Ampleforth’s success is not necessarily bound to the success of cryptocurrencies themselves. • By being not just an ideal tool for diversification of any portfolio, but also with the constant equilibrium finding at 1$, AMPL could compete with traditional commodities and FIAT in the best case, hence tackling markets in the trillions. The initial market cap of Ampleforth will be $4.9 million USD Source: Blockfyre Research
14. Tokenomics - AMPL Token Information Symbol AMPL Decimals 9 Contract Address 0xd46ba6d942050d489dbd938a2c909a5d5039a161 Type ERC20 Network Ethereum AMPL’s utility / purpose x Private Sale IEO Seed Sale Token Treasury Ecosystem Development Team & Advisors Allocation of ICO funds • Short term: Diversification of cryptocurrency porfolios / Tackling the correlation of the overall market to Bitcoin • Mid term: Reserve collateral in decentralized banks, similar to Maker DAO • Long term: Alternative to FIAT, similar to BTC just marcoeconomically friendly Source: Blockfyre Research | Tokinex Launchpad
15. Tokenomics - AMPL IEO details x Distribution schedule • 4,900,000 USD for 0.98 USD / AMPL was raised, which will be the initial market cap with listing • All other token allocations are vested and locked for at least 3 months • Since the IEO craze began, Ampleforth has been the first project launch on Tokinex, the IEO platform from Bitfinex / Ethfinex • Hence, Bitfinex & Ethfinex will likely be the first exchanges to list AMPL • The conduction of the IEO itself was quite critizised, as it was sold out within 1 second • During the IEO, 10% of the total supply was for sale. Hence, 5,000,000 AMPL were sold at the price of $0.98 USD for $4,900,000 USD. • The only currency accepted during the IEO has been BTC, which was pegged to $7973.26 USD • Hard cap for each particpant was 0.627 BTC (= $5,743 USD) Comments Source: Blockfyre Research | Tokinex Launchpad
16. • Network launch • Governance roadmap • Governance contract V1 • Price target to CPI Roadmap past future • Ampleforth contract • Monetary Policy contract • Market Oracle contract • Whitpaper • Documentation release • Security audit • Github release • Testnet launch • Dashboard release x Comments • Please note that the roadmap might appear highly rudimentary. However, that is mostly due to the fact the most of the work has been already done, and once Ampleforth is fully launched, there is actually not much that is left to do, similar to BTC. Besides from governance, AMPL’s success is then fully dependent on adoption. Tokinex IEO
17. Team Evan Kuo • CEO of Ampleforth • BS in Mechatronics, Robotics and Automatic Engineering from University of Berkeley • 1 year working experiencs as Product Manager at Yahoo • From 2010-2018, Evan founded two companies which he led, so he has extensive leadership and entrepreneur experience • Expert in databases, scripting and software languages x Aditya Sarawgi • Engineer / Backend at Ampleforth • BE in Electronics and Telecommunication from University of Mumbai • MS in Computer Science from Stony Brook University • 12 years of working experience in various companies as Developer and Software Engineer • 5 years of working experience at Uber as Software Engineer and Product Manager Richy Qiao • CBO of Ampleforth • Graduated at Yale University, BA in Economics • Working experiences as Consultant and Private Equity Associate in companies like Strategy& (= PWC) • Since 2018, Richy is furthermore Director and Venture Partner of FBG Capital, a digital asset management firm with its focus on blockchain-based projects Brandon Iles • Co-founder & Engineer of Ampleforth • BA and MCS in Computer Science from Rice University, Houston • 13 years of working experience as Software Engineer, in companies such as Google and Uber Source: Blockfyre Research | Ampleforth Website, LinkedIn
18. Advisors & Investors x Investors • Brian Armstrong - CEO of Coinbase • Huobi Capital • True Ventures • Pantera Capital • Founder Collective • FBG Capital • Spartan Group • Nima Capital • Skunk Capital Advisors • Joey Krug - Core Dev at Augur, Co-Chief Investment Officer at Pantera Capital, has been advisor to several projects such as 0x • Sam Lessin - Former Vice President of Facebook, Co- Founder of Fin • Niall Ferguson - Senior Fellow at the Hoover Insitution from Stanford, former professor at Harvard Universtiy • Noah Jessop - Graduated the MIT, serial entrepreneur and Venture Capitalist • Paul Verdadittakit - Graduated University of Berkeley, Partner at Pantera Capital and extensive advisor experience at projects like Enigma, ICON, and many more Source: Blockfyre Research | Ampleforth Website
19. Ampleforth Rating Total score: 52 / 66 = excellent investment opportunity Please keep in mind, that this is based on a $5 million USD market cap. However, AMPL is not traded yet and is likely to open for a much higher listing price, which would obviously lower the upside potential x Product 10/12 Community 11/12 Traction 5/6 Code 7/9 Trading 10/12 Network 9/15 Whitepaper Competition Value Roadmap Website Communication Advisors Influencers Development Status Partnerships Background Team Dev engagement Contribution Speed Profit (1 month) Profit (1 year) Exchanges Token distribution Google Trends News Mentions Twitter Follower Telegram Follower Reddit Follower
20. Conclusion General opinion High upside potential Short term / Long term Risk & Concerns x In our opinion, Ampleforth is one of the most innovative and fascinating concepts we have seen within the crypto space. The concept is unprecedented and exhibits an opportunity to tackle the high correlation of cryptocurrencies with one and each other, as well as comes with potential monetary use value, while being neither inflatory nor deflatory. Depends on the opening price on Bitfinex, once AMPL is fully distributed and unlocked for trading. With the initial market cap of $5 million USD, which was raised during the IEO, we believe AMPL has a very high upside potential here, given the fact that it’s main competitor is basically Bitcoin itself. As fascinating as it might be, the level of innovation and uniqueness makes Ampleforth protocol highly speculative and basically an experiment. While it reads nicely on paper, it remains to be seen how unproblematically this idea really evolves. And even if the technology itself works, it’s up to the community to accept AMPL and adopt it properly. However, we are confident that the team with its strong background and with its astonishing advisors and investors is well positioned for making this a success. Personally we believe AMPL is a promising investment opportunity not just short term, but also long term. While it is potentially and excellent tool for diversifying cryptocurrency portfolio to decouple from BTC dominance, the possibilities for AMPL are endless in the long term. In the very best case, AMPL could even become a widely accepted medium of exchange.
21. Blockfyre Jonathan Habicht Simon Dedic Alexander Schätz Disclaimer One of our team members has been able to get into the IEO We have been in contact with the team If you like this review, dont forget to share it! Follow Blockfyre x