Ampleforth — the developer of a new synthetic commodity
designed to diversify risk — has released an updated white paper for its
digital asset protocol.
According to the press release, the design for the Ample token —
expected to be traded under the ticker symbol AMPL — is intended to
resist price correlation with both traditional assets and large
market-cap cryptocurrencies such as bitcoin (BTC).
As Ampleforth notes, while cryptocurrencies as a sector have thus far
broadly shown non-correlation with traditional asset groups and
macroeconomic factors, within the crypto market itself, many large-cap
coins have ostensibly shown strong correlation with one another.
Ampleforth thus hopes that its protocol design — which propagates
nominal exchange-rate information into token supply — will result in
lower intra-market correlation for its token, thereby mitigating
non-diversifiable risk for crypto investors. The press release outlines
Ampleforth protocol […] receives exchange-rate information from
trusted oracles, and propagates that to holders of Amples by
proportionally increasing or decreasing the number of tokens each
individual holds, according to the magnitude of the exchange rate
fluctuations over the previous 24 hrs.”
The new asset is furthermore designed to mitigate volatility — yet is
distinct from a fiat-pegged stablecoin, with the white paper outlining
the algorithmic basis upon which the token’s supply policy will
prospectively result in minimal price pattern deviations. It has
reportedly thus far raised $4.75 million in funding to finalize
development of its protocol from investors that include Coinbase
co-founder and CEO Brian Armstrong, True Ventures, Founder Collective,
Slow Ventures, Pantera and FBG.