The total market value of the stable coin Ampleforth hit a record high this week, and the token price fell nearly 70%

According to data from CoinMarketCap, the total market value of stablecoin Ampleforth (AMPL) tokens reached a record high of around USD 600 million on July 27, and subsequently fluctuated and fell. Currently, it is hovering around USD 282 million, a drop of nearly 53%. The price of AMPL tokens also dropped from around US$2.9 at the beginning of the week to around US$0.85, a drop of nearly 70%. According to the previous analysis of the chain, the Ampleforth agreement has designed a unique elastic supply mechanism. When the price of AMPL changes, the agreement will seek to reach a new balance point by expanding or contracting to all AMPL holders. The simple understanding is that when the transaction price of AMPL is higher or lower than a predetermined threshold (such as $1), the Ampleforth protocol will trigger a rebase function to automatically increase or decrease the market supply of AMPL. Ampleforth received US$3 million in venture capital last year, led by True Ventures, with participation from Pantera Capital, FBG Capital, and Coinbase founder and CEO Brain Armstrong. In addition, Ampleforth conducted token crowdfunding as Bitfinex’s first IEO project in June 2019.