Ok , AmplEinstein back, to explain economics 101 and primary school maths to you fags. Was quite an interesting day, I had a blast, I didn’t think quite so many of you would shit the bed - jk. This stuff is difficult, and unique. Here’s a hot coco, I’m your grandpa, all going to be ok, let me explain what happened and how you can dominate all the other fags next time. Sit down, good frogs.
The day before yesterday the AMPL price hit $2.80 on uniswap. It had an average price of $2.50 , giving a whopping 15% supply increase rebase - i.e. 15% compound interest - if you don’t know the unique economics of AMPL then you MUST read “the red book” on the ampl website. TLDR, if price is above $1.06 there is a supply increase, which gives you extra tokens - think compound interest. I’m now assuming you know this much.
Now basic economics. Over the last 7 days the price went from $1 to $2.80, but because of supply rebases being 2% 3% 6% 15%, it’s not just a 280% gain, it's a 370% gain (approx), *if you bought $10k of ampl on 1st day of the liquidity incentive program (breadcrumbs; read “ampleforth geyser” to learn about this EXTRA liquidity incentives! I.e. this is why this crazy run started in the first place).
Now a 370% gain is incredible, why wouldn’t you sell some. I hear people here claiming “let's just all hold and it's infinite profit from the supply compound interest”, and while this is true… again, open your eyes, people have 370% profit. Of course there are sells.
Some sold. Others saw the price coming down. They sold. Cascade effect. Even the 1 day gain here was enough to stimulate profit taking - it went from $1.60 to $2.80 with a 15% supply increase. You can take profit, you can also see the price coming down to your entry and get nervous and sell… cascade effect.
This is all that happened [pic related!]. It isn’t a pump and dump. This isn't some uniswap fag scam. This is a legit 2 year old project with a real team (uber, google background), real investors (Brian Armstrong of Coinbase, Michael Arrington of Techcrunch), Pantera Capital, FBG Capital, as we'll as strong ties to Chainlink (uses the oracle), podcasts with Sergey, and more recently Charlie Schrem - these are real names, not pump and dumper user uniswap clowns.
Also what happened - the whales and first holders who started the dump - they were at 200-370% profit let's say. The price coming down from $2.80 to $1.70 - they get to rebuy. The project isn’t broken, it is designed to do this. The economics are working perfectly. They made the right trade. They get to rebuy at $2 and under.
Now here’s the beauty. They get to rebuy at 30% cheaper. AND knowing there is STILL a positive rebase coming tomorrow (which just happened and was 13%) - so they got to rebuy 30% cheaper AND then get 13% extra. Of course they sold. Of course you do this.
Additionally, while everyone was crying for their mom and having a meltdown on misunderstanding what was happening. They made their trades calmly, with knowledge that they are supported by $2+million in liquidity in uniswap. AND the geyser liquidity program - and being able to see that no one was withdrawing liquidity from there - a safe base to buy and sell into, knowing they would be supported.
Now you know. But know this. This will happen over and over and over again. And you can either be next and trade and ride this up to a $100mil cap, or you can dump your bags as a loser - again, or you can just miss out - again.
BUT, never trade with your whole bag. Especially on this right now. ^ this scenario will continue to play out, but it could be the peaks being $1.80 and lows $1.20 , or it could being the peaks $3.50 and the lows $2.10.. So be careful. Don’t trade yourself out of a position which literally has the potential to be a KEY foundation stone in the defi space - acting as a collateral coin, sucking up $ from other stablecoins which are collateral backed in favor of this purely smart contract design based economics.
Now you know what happened, but THE most important thing is to really realise that this is REAL. That we are STILL in a $ market cap and supply DISCOVERY phase. If you try and time these kinds of trades too much, with all of your stack, then you will get out traded at some point. The long term trend will be UP - MASSIVELY - this is literally new economics, and a strong use case for uncorrelated (to btc or eth), non collateral backed (risk of black swan, or being unbacked (tether lol), or being fake decentralised (dai, it's just fucking usdc now)
Wallet from pic above. Now he put all of that profit and all ample into the uniswap pool and geyser. added 30%. good enough. long term hold now. earning incentives from the geyser. more liquidity and foundation in the market for us all too. thanks bro. forgive u for scalping me 30%
Asher Adams
Btw this is the maximum ultra incentive tokenomics for holding a token
Do jack shit and get 1,5x of ampls after a year. Just from geyser alone, if you get ampl trading at 2$ one day, you have a 3x. Or a a 4.5x or a 1.5x. You might think that percentage in a year is nothing but you are doing jack shit. That is without any rebase and uniswap pools fees. The compound effect is fucking insane.
Ayden Wilson
Ok this is some serious high IQ shit Just tell me the buy target sell target and how much to make it and unironically, where to buying?
Isaiah Morgan
do you need be to wipe it too? ok will do it all for you fag.
Nathan Perry
rebase einstein is based
Charles Robinson
mega einstein here : we are ALL going to make it
Nathaniel Torres
Lol op did the math so wrong... 40% NOT 370% Whatever I know it's just cause you want to drop your bags fags. Already dropped mine. You got greedy and got fucked now.
DON'T GET IN! YOU WILL LOSE! Wait til next bull cycle
When is the next cycle sir? That would be nice. I usually use a water jet because i'm not a third worlder savage
Kayden Price
Once it finds a sustained price floor and begins grow again. Needs a steady growing mcap to be safe to jump in again
Sebastian Ward
fren did the math wrong. its 40% on rebase alone. AND $1 to $2.80 bottom to peak. thats approx 370% fag. or explain how $1-2.80 is only 40% gain. THIS frens is why this coin is going to be so profitable. As there are 2 calculations to do, and we get to trade against people who cant wipe their own arse let alone do 2 sets of basic sums and add them together.
Samuel Rivera
based
Sebastian Harris
Truly, but say good bye to the mcap. Nightly dumps > than rebase %
Mcap is shrinking. Next bottom around $1.4.
Mason Martinez
Ok i'm gonna start buying around there thanks for the tip senpai
Colton Reed
Reminder that Einstein was a socialist
In such an economy, the means of production are owned by society itself and are utilized in a planned fashion. A planned economy, which adjusts production to the needs of the community, would distribute the work to be done among all those able to work and would guarantee a livelihood to every man, woman, and child. The education of the individual, in addition to promoting his own innate abilities, would attempt to develop in him a sense of responsibility for his fellow men in place of the glorification of power and success in our present society
I just want to know why the hell the liquidity has only gone up since I bought in but my bag in terms of actual money (well... fiat, anyway) has only gone down.
Josiah Gomez
what price did you buy in at?
and this is why most people dont understand the effect of compounding interest as they sink into credit card debts.
yeah but AMPL is peak capitalism What are you trying to say?
Jackson Davis
$2.56 But I was sitting here watching ETH after ETH pour in and right after I bought in someone bought something like 550 ETH worth, sending the liquid up over 820k from 700k, but the value of my stack went down somehow.....
Carter Lopez
How can I get sell orders in immediately after the rebase? Before the coins show up in my wallet the dump has already started
Nolan Jackson
This
Evan Roberts
Probably someone else sold a bunch too?
The rebase for past 2 days were 15% and 13%, which compounds to about 30%. Since the fall in price from 2.56 -> 1.8 is slightly more than 30%, your overall stack in USD falls
Brandon Jackson
>thinks discussing a crypto token’s price increase (literally that and nothing involving actual incentives and roles) economics R E T A R D ngmi t. Made it (almost)
Adam Ortiz
This is exactly what I mean. How the fucking fuck does more liquidity = less value?...
Chase Ortiz
The mcap is shrinking, so each ampl is worth less relatively. High supply, low price
Chase Smith
Anyone not balls deep on this dip and any cooooming dips will simply be left behind.
