Is Ampleforth Governance Token (FORTH) a Good Investment?
The question regarding FORTH being a good investment can be answered when we look at the project backing it. The aim of Ampleforth is to take stable contracts to a whole new level by eliminating any centralized collateral or central bank partnerships. They have advertised the statement on their website and all community pages that Ampleforth is like Bitcoin but it can be used in contracts. This means that the native currency AMPL is much more stable than bitcoin but it is as decentralized as btc is.
The stability is achieved through a unique mechanism where the supply of the currency increases if the price exceeds $1. Similarly, the supply is decreased on a price plunge. So, the supply changes everyday to keep the price stable.
Overall, the project is pretty decent and is being adopted by huge names like Brian Armstrong, Pantera Capital, Huobi Global and much more. The project has a governance token that, as opposed to the native token, appreciates in price and is a bigger attraction for investors.
The token has been in a down trend or correction period as is the whole crypto market. Ever since hitting its all time high at around $60, the token has been riding the current bear market that put it down to $17. Even in the short term, the FORTH token is testing the 30-EMA resistance, and if it is to break past it, we’re definitely going to see the token move towards testing the 20-MA resistance at around $25. In case of a bull market, we’ll be looking towards the token moving once again to the all-time high and breaking the previous record. This puts FORTH above $60 giving investors a solid ROI of above 3-4x. Currently, around ten thousand tokens are added to the circulating supply everyday which has stagnated the price for now but once this temporary period is over, we can easily expect the price to sky rocket with even the same demand that we’re observing in the market right now.
As for the rising popularity of the token, Coinbase’s stats has put FORTH on #8 on its most held tokens, slightly above Bitcoin Cash. This signals how investors are slowly moving towards this newly discovered low-cap and are interested in how the currency plays out in long term. Coinmarketcap ranks FORTH at #273 with an overall market cap of around $118 million and rising. As compared to all the bigger names that Ampleforth aims to compete with in the market, the market cap is significantly low. The bear market has pushed panic sellers to reduce this token’s market cap significantly but with the big names backing the currency in addition to the slow and steady adoption, the bull market is expected to bring an exponential increase in adoption and hence the price performance. So, the answer to the initial question relating to FORTH being a good investment is that low caps with actual intrinsic value in their projects and a lot of catalysts are what make the best investments in the long run. These projects give fast returns and have the capability of going exponential as opposed to currencies like bitcoin and Ethereum which are much more stable and have a relatively slower growth rate.
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