AMAL is a decentralized cryptocurrency, and its price is determined by a mathematical equation governed by an Automated Market Maker (AMM).
Many analysts believe that for a cryptocurrency to reach a price of one dollar, there must be one dollar for each coin or token. Therefore, if the total supply of the cryptocurrency is one hundred million, the total purchase value must reach one hundred million dollars to reach a price of 1 dollar. However, this equation does not apply to AMAL or any other decentralized token that relies on an automatic market maker system.
Is it easy to determine the price of AMAL?
AMAL's price can be determined with greater accuracy than most cryptocurrencies for two reasons:
Add the maximum supply of AMAL to the liquidity pool in the decentralized platform. As a result, the Total Supply will always be equal to the Circulating Supply, a unique feature not applicable to most cryptocurrencies.
AMAL is tied to the stablecoin USDC, which always equals $1, ensuring no price fluctuations for the AMAL coin.
How to determine the price of AMAL?
To determine the price of AMAL, the market maker divides the total value of USDC in the liquidity pool by the number of AMAL tokens available for trading. For example, at the time of writing this article, there are 44,370,305 AMAL coins and 46,059 USDC coins in the liquidity pool. Dividing the value by the number gives us the current price of AMAL.
As more USDC is added and the AMAL available for trading decreases, the price rises with each purchase. Conversely, the price decreases with each sale as AMAL is returned to the liquidity pool and USDC is withdrawn.
When can AMAL AMAL reach 1$?
Based on the previous equation, the price of AMAL will reach one dollar if the value of USDC purchases reaches approximately one and a half million dollars.
Can a humanitarian currency achieve this level of liquidity?
Some people may believe that the recent increase in cryptocurrency value is mainly because of meme coins, which arecryptocurrencies without any real purpose. However, the world of cryptocurrencies also includes many charitable tokens and coins that have achieved significant success and have amassed millions in liquidity.
For example, there is a charity token aimed at protecting a specific breed of dog, called Pitbull, which has surpassed $4 million in liquidity: Pitbull.
Additionally, the total cryptocurrency donations from 2018 until the beginning of this year have exceeded two billion dollars. It is estimated that there are approximately 580 million cryptocurrency investors worldwide.
What could accelerate the process of reaching the price of AMAL to one dollar?
1. Access to the central exchange:
The most influential factor in reaching $1 is to list AMAL on a reputable central exchange. Entering the exchange will bring numerous advantages, including:
Increasing the number of investors: The central exchange has millions of users, leading to a significant increase in investors.
Marketing: These exchanges conduct unique marketing campaigns to promote the cryptocurrency as it enters circulation on their platform, introducing the project to a larger audience of cryptocurrency enthusiasts.
Purchasing many tokens: To enter the exchange, a significant amount of AMAL, valued between $10,000 and $20,000, must be transferred. Since we don't currently have any crypto wallets containing this large quantity of AMAL, we will need to purchase this amount to prepare for the transfer. As a result, a large amount of AMAL will be removed from the liquidity pool and a corresponding amount of USDC will be added. This will cause a sustained increase in value, as the transferred tokens will not be returning to the liquidity pool.
Price rise: Upon entering the central exchange, especially the first time, we will likely observe significant price increases. Our presence there is intended to support AMAL rather than drive down the price. As a result, we will all notice that the price of AMAL on the central exchange will be higher than on the decentralized exchange. When this occurs, we will see an increase in buying activity on the decentralized exchange, as traders aim to sell at a higher price on the central platform. Consequently, this will drive up the price of AMAL.
Increasing the trading volume: There are paid services offered by exchanges to provide a smart market maker for achieving high trading volume, and we will do this to benefit AMAL investors.
2. Increasing the number of purchases in the decentralized platform:
The second reason that could increase the price of AMAL is an increase in the quantity of purchases on the decentralized exchange. When a token has strong fundamentals that convince the community to invest in it, this results in more purchases. The higher the quantity of purchases on the decentralized exchange, the higher the price of the token.
From this perspective, we believe that AMAL has many features that encourage the community to invest in it, including its humanitarian project, transparency, credibility, technologies, rewards for holders, and high level of security.
We are committed to doing everything necessary to support AMAL in this regard.
3. Decrease in the number of currencies:
When AMAL is sold, a smaller amount is returned to the liquidity pool. This happens because 1% of the buying and selling process is burned directly, and another 1% goes to a wallet that buys AMAL and burns it. As a result, the number of AMALs is constantly decreasing with each transaction.
This decrease in the number of AMALs, combined with the price determination equation mentioned earlier, leads to an increase in the price.
When will you join the central platform?
Currently, we have been approached by eight exchanges: Bitmart, MEXC, LBANK, XT, P2B, Toobit, Latoken, and Pointpay. However, we believe it's not the right time to get listed on centralized exchanges as AMAL is a decentralized currency. It's important to first establish a strong decentralized exchange foundation, increase the number of AMAL holders to thousands, and elevate the value of the liquidity pool. We anticipate that achieving these goals will take approximately a year from now.
Which central exchange will AMAL launch on?
We understand that the effect of launching on different cryptocurrency exchanges can differ. We are committed to selecting the most suitable exchange to ensure a successful AMAL launch. Our aim is for the first exchange to be ranked in the top twenty platforms according to Coin Market Cap and Coingecko.
Finally, with the cooperation and support of the AMAL community, we hope that transitioning to the dollar will be just a matter of time with our continued support for AMAL.
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