Synthetic Commodity: Ampleforth IEO Claims $5 Million Raised in Just 11 Seconds

Ampleforth (AMPL) reports that its initial exchange offering (IEO) raised a solid $5 million in just 11 seconds. The IEO was completed via BitFinex and Ethfinex’s Tokinex platform. Tokinex is Bitfinex’s IEO platform.

AMPL tokens are expected to be distributed to holders within the next few days. The issuance will be followed by a listing on Bitfinex and Ethfinex soon after.

Synthetic Commodity

Ampleforth is described as a “digital asset protocol for smart commodity-money.” AMPL has an equilibrium price target but creators caution against calling it a stablecoin because the crypto may lose or gain in value and the price is market dependent.

According to its website, AMPL  was founded to “create fair, politically independent money.” The creators point to gold and silver as “naturally fair and independent.” But these commodities are also a poor substitute for central bank currency.

The Ampleforth whitepaper was co-authored by Hoover Institute researcher Manuel Ricon Cruz. Ampleforth was founded by a group of tech veterans with resumes that list names like Google and Uber. The company also has the backing of Brian Armstrong, True Ventures, Pantera Capital, and Slow Ventures.

Evan Kuo, CEO of Ampleforth, said they have been overwhelmed by the excitement generated by their IEO:

“The success of this raise is a strong indicator of the market needing more diversified assets other than what currently exists. Working with the Tokinex team gave us the opportunity to bring Ampleforth to life and we look forward to continually updating the community on our progress.”

Ampleforth explains that their protocol receives exchange-rate information from “trusted oracles” and propagates that to holders of Amples by proportionally increasing or decreasing the number of tokens each individual holds according to the magnitude of the exchange rate fluctuations over the previous 24 hrs.

For traders, these changes in the exchange rate and quantity translate into changes in Ample’s market capitalization.

Ampleforth expects the digital asset to show a lower price correlation to Bitcoin than other crypto assets.

“We are delighted to see the successful completion of our first sale on Tokinex completed in record time,” stated Jean Louis van der Velde, CEO of Bitfinex and Ethfinex. “The demand for the Ampleforth sale was incredibly high, and we were thrilled to provide the opportunity for people to contribute. We look forward to seeing how the Ampleforth project evolves and will announce Bitfinex and Ethfinex listings in due course.”

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