Crypto Startup ‘Fragments’ Releases New Stablecoin After Rebrand to Ampleforth
As of today, crypto-tech firm ‘Fragments’ has officially rebranded itself as Ampleforth— a character from the George Orwell classic ‘1984’ whose role was to translate traditional poetry into the fictional language of Newspeak.
In its core essence, Ampleforth is a project that aims to preserve the unit of account and money properties of its tokens. It does so by pegging the unit price to the dollar. What makes Ampleforth different is the Ampleforth protocol shifts volatility from unit price to unit count.
Lastly, it is also worth mentioning that since its inception, Ampleforth has been able to raise somewhere close to $4.75 million from various venture capital firms (some big name backers include Coinbase CEO Brian Armstrong and Pantera Capital).
Talking about the bearish conditions that have engulfed the crypto market recently, Ampleforth CEO Evan Kuo was noted as saying that:
“We believe Bitcoin is on a path to becoming a potential institutional asset and long term store of value and that Bitcoin's longterm functional utility is limited by its fixed supply policy.”
Not only that, but Kuo also said that he believes most stablecoins “fulfill a different and important need for traders today.” Ampleforth aims to solve any issue by making its native alt-coin offering into a legitimate medium of exchange by stabilizing its real-world value.
On the matter, Kuo also added:
“When the price exchange rate between Amples and dollars is < 1, the protocol responds by deflating directly from coin holders, placing pressure on speculators to buy.”
At this point, it is worth mentioning that most stablecoins today are pegged with the US dollar as a result of which, traders have a hard time managing their balance sheets. In this regard Evan was quoted as saying:
“Rather than solving the Tether problem, Ampleforth is delivering on Bitcoin’s original promise. The Bitcoin protocol launched as a fair and independent alternative to fiat money. But, as we’ve seen, Bitcoin’s fixed supply and price volatility makes it virtually impossible to be used as a unit of account or medium for exchange.”
Over the course of the past 8-12 months, more and more stablecoins have been introduced into the global altcoin market. However, this has forced the digital currency sector to be plagued by a number of issues based on complex financial mechanics.