The Ampleforth Governance Token (FORTH) has been added to the portfolio of leading crypto exchanges Binance and Coinbase Pro, promising attention. Ampleforth is a DeFi project.
Currently ranked 300+ among the top cryptocurrencies by market capitalization, Ampleforth Governance Token (FORTH) is not a hot candidate for listing on Coinbase Pro at first glance. But in the middle of last week, Coinbase nevertheless announced that it was listing FORTH on its Pro version. And on Friday, Binance followed suit via Twitter and has since then included Ampleforth governance tokens as well. It’s important to note the difference between FORTH and AMPL, which both have Ampleforth spelled out in their names, but form the basis for the DeFi project from two different directions.
Background on FORTH, AMPL and Ampleforth
Ampleforth (AMPL) is a DeFi token used to provide liquidity in the Ethereum (ETH) ecosystem. The special twist here is that while AMPL is supposed to move around the $1 benchmark like a stablecoin. But the protocol automatically aligns price corrections with Bitcoin (BTC), making AMPL theoretically more efficient for use in the DeFi space than US dollar-covered stablecoins. Thus, AMPL provides an alternative to DeFi, where the U.S. dollar is the primary reference. However, the concept of Ampleforth also brings with it a constantly changing number of circulating AMPL, as their quantity is adjusted to market prices.
This is where FORTH comes into play as the Ampleforth Governance Token (FORTH). FORTH is designed to vote on changes to the Ampleforth protocol. This involves issues such as which price fluctuations the protocol should react to. A distribution of profits at Ampleforth would also be conceivable via FORTH.
Why do Coinbase and Binance list FORTH?
Coinbase Pro recently added more than a dozen major DeFi tokens from 1Inch to Uniswap (UNI) to Graph Protocol (GRT) to its portfolio and is continuing on this course with FORTH. What the US competitor Coinbase can do, we have been able to do for a long time, Binance usually thinks. So it remains exciting to see which of the two will win the competition as the leading trading platform for Ampleforth Governance Tokens. At lower volumes, Coinbase Pro and Binance are currently on par for FORTH.
Bottom line: does FORTH belong in an investment strategy?
Ampleforth AMPL, i.e. the liquidity token, definitely has potential with its fundamentally different understanding of the definition of a stablecoin. If the goal of gathering significant liquidity under AMPL is fulfilled, the Ampleforth Governance Token FORTH could also gain in attractiveness and increase in price. But it is especially true here, as with other DeFi projects: Without a willingness to look at a different approach to finance, as in this case, the risk for investors in FORTH is considered to be as above average as the chances of profit.