The defeat of the AMPL department: from daily lying earning to falling into a death spiral
Editor's Note: This article comes fromDeepChain (ID: deepchain-eva), Author: Mark, reproduced by Odaily with authorization.
Editor's Note: This article comes from
DeepChain (ID: deepchain-eva)
DeepChain (ID: deepchain-eva)
No matter how advanced the funds are, there will be a day when they collapse.
The 2020 bull market is here, and various altcoins have risen astonishingly. AMPL has also been crazy for two months, and the compound interest has reached a terrifying 80 times. But then it fell into a death spiral and fell all the way, falling below $1.
YAM, which inherited the mantle of AMPL, was at its peak when it debuted, and then collapsed in one day due to code problems.
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Can AMPL make money lying down?
In recent months, AMPL has been a hot spot in the currency circle, and it has also made a small number of early participants get rich directly. AMPL "believers" can be seen in various communities, so what is the AMPL project and why is it so popular?
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This low-threshold high-yield gameplay instantly attracted many players to participate.
The relationship between AMPL price and rebase
If the price of AMPL is higher than $1.05, the higher the price, the higher the rate of token increase during rebase; if the price of AMPL is lower than $0.95, the lower the price, the higher the rate of token decrease during rebase.
Therefore, when the currency price is higher than $1.05, as long as the currency price does not fall, you can earn tokens every day by putting the tokens in your wallet, and you can also sell the tokens for a profit.
This low-threshold high-yield gameplay instantly attracted many players to participate.
From the model point of view, this is an advanced fund with its own FOMO. Players who buy AMPL will consciously promote the project and attract more users to participate.
AMPL Historical K-line Chart
As a result, the currency price has been rising all the way, the spread of the project has become wider and wider, and the number of participating users has increased dramatically.
However, the mechanism of AMPL also has very serious problems. When the currency price falls, token holders will face the problem of token reduction during rebase, which will easily form a death spiral and accelerate the plunge of AMPL.
At the same time, there is still a phenomenon in which arbitrageurs control market price fluctuations.
AMPL Rebase is carried out at 10 o'clock every day, and we can see an interesting phenomenon: arbitrageurs quickly sell tokens after the rebase, wait for the low point to be picked up, and make swing profits.
However, after the AMPL whale made a profit and shipped, AMPL directly fell below $1. Although there were several rebounds in the follow-up, the general trend was over after all, and the glorious moment of AMPL was gone forever.
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The rise of AMPL imitation disk
After AMPL became popular, its gameplay was also borrowed by other projects, such as YAM, RUZE and RMPL.
Among them, the project most similar to the AMPL model is YAM.
YAM mortgages the mining output through the liquidity pool, and then rebases at a fixed time every day, 4:00 am and 4:00 pm, just like AMPL. Due to the hot hype in the market, the price of YAM directly rose to more than 160 US dollars in a short period of time. For the first time, the increase in the currency of Rebase was as high as 10 times, and the price also dropped rapidly.
However, the good times of YAM did not last long. The project did not undergo a security audit, and there were problems with the code, which triggered an exponential growth of tokens. In the end, the official tweeted an apology and said that the project failed, and YAM 2.0 will be launched later.
The second imitation disk project is RMPL. The basic rules of the project are the same as those of AMPL, except that the rebase time is changed to be random within 0-48 hours, and rebase is performed once a day on average, in order to reduce the problem of market selling pressure in this way.
RMPL project fund pool status
RMPL's current capital pool ranks 35th on Uniswap, reaching about 1/20 of AMPL's, which is considered a relatively large project.
However, the RMPL fund pool has changed a lot, and it has a strong correlation with AMPL. As long as AMPL surges, RMPL's capital pool will decrease in a short period of time.
It can also be seen that imitation disks are imitation disks after all. As long as the price of AMPL is stable above $1, users will still choose AMPL.
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From the perspective of token distribution, most of RMPL's tokens are in the hands of the team. The project party's plan is to operate the project for a long time and allocate tokens to various aspects needed for future development. But this also caused a big problem, the high concentration of tokens, if the project does evil, it will cause a devastating blow.
Moreover, there has been a collapse, and the project needs a long time to adjust to get out of the death spiral.
Another imitation disk is RUZE.
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RUZE project data details
The current price of RUZE is US$0.004, which is a serious negative premium. The project was originally planned to officially start on August 15, but the project party announced that it failed to start, and will airdrop tokens according to the snapshot address, and then restart the project. The fund pool is only 30 Ethereum, which is a very small project with high risk.
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RUZE spreads good news about the project and calls for orders
In addition, the project party will often call out orders, saying that they will cooperate with the exchanges in the TOP20, and the coins in the project party's fund pool will be locked for two years, which can increase by 100 times. In fact, the project has not made any progress. To use the buzzwords in the DeFi field, this is actually a local dog project.
Such an ordinary project still has so many participants, why is this?
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AMPL's popular "methodology"
Why does the AMPL series get the attention of so many players? There are four main reasons:
1. The model is simple, the threshold is low, and the effect of making money is strong.
The AMPL system is simple to play and the threshold is very low. It can be directly converted on Uniswap, put it in the Ethereum wallet, and you can automatically get additional coins. As long as you learn how to use Uniswap to exchange coins, you can quickly carry out this type of project operation, so it can attract a large number of users to participate in a short period of time.
Investors who participated in the early stage will continue to receive additional tokens. As long as the currency price is stable, these additional tokens will be income, and the money-making effect can attract users to participate.
2. Investors who missed the early dividends of AMPL will choose to participate in the imitation market.
Many investors missed the early dividends of AMPL, and are unwilling to participate in the high price of AMPL or the stage of currency reduction, so they will look for similar profit-making imitations, and choose to rush into the market at the first time to earn early bonus.
3. AMPL fell into a death spiral, and profitable players looked for new plates to play.
AMPL's capital pool in Uniswap is as high as 70,000 ETH, ranking first on Uniswap. However, because the current project has entered a state of deflation, large funds have fled, and tens of thousands of ETH have fled in just a few days.
In order to reduce losses, many players have to find similar imitation disks to participate in and profit from them. There are also AMPL profit-seekers who will look for similar projects to participate in, and these imitation disks can easily become the targets of these speculators.
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RMPL stable high-rate currency increase
For the AMPL system, its long-term stability of around 10%-30% cents is more attractive to users.
Most of the participants will participate because the tokens are expected to rise and they can get cents, so the long-term stable high-score model will promote the healthy development of the project and make the whole project sustainable. Then use the stable coin to promote the project in various communities, and many investors will also pay attention to this project and get on the car.
There are many imitation discs, but there are also many minefields
AMPL has been tested by the market for such a long time, the project is still reliable, and the code has not had any problems. But can these imitation disks really be as risk-free as AMPL?
In fact, the risk of participating in this kind of project is still very high:
1. Project information is not open and transparent.
RUZE team information is opaque
Many imitation disk teams are anonymous, and some don't even have white papers and websites. Directly issue an ERC-20 token, and then start to build a community, and attract users to enter the market by shouting orders and so on.
Such a project has high potential risks, and it is very likely that the currency price will directly return to zero due to various uncertain factors.
2. The team's token allocation ratio is relatively high.
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The RUZE project team secretly smashed and shipped
The project party puts a large number of tokens on multiple ETH addresses, and only puts a small part of the tokens into Uniswap, so it seems that the plate is very small.
For example, RUZE has locked 85.8% of the tokens, but other addresses have not been officially mentioned, but vaguely stated that there was a private placement in the early stage, and the price was 0.04 US dollars. From other addresses, we can see that the RUZE project party has been secretly smashing the market since the project was launched. At present, 8 million RUZE have been sold out, and hundreds of Ethereum have been obtained.
RMPL is similar, the team saves most of the tokens in their hands and only puts a small part in Uniswap. This has caused a big problem, that is, if the project party smashes the market, it will directly reset the project to zero.
3. Code plagiarism, unaudited.
Most of the imitation disk projects are modified on the basis of AMPL code, so it is not ruled out that there will be problems.
As long as there is a problem in the mechanism, such as a problem in the coin, it will inevitably cause panic among investors, lead to stampede shipments, or the code has a loophole and is hacked, and the coins in the fund pool are stolen, all of which will make the project On the road to zero.
The code is the core of this type of project, so the imitation disk that has not passed the code audit is actually a big problem, and there are many potential risks, so you need to pay attention to precautions when choosing a project.
4. The death spiral will repeat itself.
The problems with these imitation mechanisms are the same as those of AMPL, which are fatal: as long as the token price of the project is lower than a certain price, the tokens will be reduced, and the price will fall at an accelerated rate. This is an amplifier of price decline. . After a period of time, the price will fall to a certain level, and then it will be pulled back by investors who enter the market to buy bottoms. After such a repetition, it will eventually return to value.
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Chasing the AMPL line? I advise you to be cautious!
A senior AMPL player told DeepChain that he has earned dozens of Ethereum from BDAO, RUZE, RMPL, SBTC, AAPL and other projects. The most important way is to obtain information at the first time, research the project and analyze the quality of the project. If the project is reliable, enter the market early to enjoy dividends, wait for the project to become hot, a large number of retail investors will rush into the market, and then leave the market in time according to the changes in the data on the chain, earn a little for each project, and eventually leave the market with a profit.
So in the face of such a crazy AMPL system, do you want to chase admission?
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AMPL series Rebase data details
From the table above, we can see that the AMPL system has collapsed across the board. Users who still hold tokens are in a state of reducing tokens every day.
