Ampleforth - stable coin based on the managing token supply on users' accounts

Rating: 4.0

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Location: N/A
Web-resources:   Whitepaper Website
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Product source tracking: https://github.com/ampleforth
Details Description Risks Full analysis Team

Detailed review

Stage of product development
Smart Contracts are developed. Security audit is made by SlowMist and Trail of Bits.

Token description
ICO date
Token price
Token distribution date
Consensus method
ICO currencies
Bounty camping
Token functions

- Tough competition and strong project with stable coin already on the market


- smart contracts are likely to be based on the fixed parameters supporting the Quantity theory of Money - this concept is questionable in its strict form, so we hope the parameters to be flexible


- The system is tied to Ethereum

- The system has a right to manage users' accounts, withdraw and add tokens - that may distract some users

- The volatility and uncertainty is nor removed - it is just replaced from the Prices to Volumed, and Inflation risk turns just Shrinknflation risk


- Financial information is not available

Full analysis

The crypto community is still looking for an alternative to replace a highly centralized Tether, that now is considered to be a benchmark to USD in the crypto valuation on markets. Tether is just collateralized by fiat and the community tries to get rid of such untransparent mechanics to fix rates. The final goal is to build up a system with no human factor within. The most advanced projects use decentralized lending terms management to depreciate or appreciate currencies as MakedDAO does. But these systems are so complicated that users are far from the total understanding of all the processes staying behind the stabilization.

Stablecoin field is competitive but is interesting for observation - here so many different ideas cross and no one knows what the solution will eventually be used by real users. So for now, we see a few experiments by teams around the globe, with different ideas - Basis, Havven, Compound


Ampleforth (formerly Fragments) aims to a stable alternative to Bitcoin. The protocol enforces a strict supply policy and controls any inflation movements.

In the WP, they distinguish three key functions of perfect money: they should 1) function as a near-term unit of account, money needs to store near-term value 2) function as a long-term unit of account, money needs to store long-term value and 3) no long-term considerations are necessary for functioning as a medium of exchange. So they see time horizon as a meaningful prizm when determining perfect money.

The key of stabilization is the controlled supply - the protocol issues more coins when the depreciation to $1 is needed and uses deflation when the appreciation to $1 is needed. Contraction and expansion of supply happen on the users' balances.

This mechanism is based on the strict version of the Quantitative Theory of Money wherein the MV=PQ, P and Q are considered constant so that the % change of Money Supply is the same % change of Prices. We think that the team didn't mean this % change assumption to be a basis in the monetary supply policy, as this relation in changes between Money Supply and Prices is hardly to be always constant.

It is expected that at the very beginning the volatility will be high, but the currency will turn stable later. The team expects their currency to be more suitable to be a unit of account and a medium of exchange over time, in comparison to Bitcoin.

Monetary policy, in fact, is a smart-contract that manages the supply of ERC-20 tokens.

The first versions of smart-contracts are released. The next step is the Testnet. Security Audit is made by SlowMist and Trail of Bits - both well-known teams with the proven track record in the blockchain field.

Business model

The mechanism of Ampleforth is brave and applies something new. At least, it is interesting to see how the supply will be managed on users' accounts. It is a risky model and that is why the team see the price and supply to be highly volatile at the very beginning. But if the protocol proves its functions to users the price may turn more protected to price movements. 




The team includes 5 members focused on the development and 1 member focused on Branding and operations. The team is experienced and well-assembled.

Evan Kuo (CEO) - Product Manager in Yahoo (1 year) and 10 years in startups on the positions of Engineering/Data/Marketing.

Brandon Iles - 5 years in Google's Search Ranking and Machine Intelligence groups and later worked in Uber's Ranking and Relevance team. 

Ahmed Naguib Aly - 5 years in Google (Software Engineer in the Search Indexing and Search Ranking groups). Bronze Medal in the International Olympiad in Informatics.

Aditya Sarawgi - 5 years in Uber (end-to-end surge pricing systems, search projects with autocomplete, destination prediction, and current location prediction, multi-modal robotic perception networks).

Nithin Krishna - was a research engineer at the IRDS/IMSC labs where he worked on applying machine learning to big data problems like traffic prediction, recommender systems, content analysis and text mining.

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