- It eliminates the need to use any third-party entities for autonomous collateralization.
- It offers real-time transaction finality assurance.
- Asset collateralization is done super-fast.
- The total supply is fixed which may raise its value later.
- The staking lock-in period is not there.
- The adoption is yet to pick up.
- The staking rewards are not exactly lucrative. The interest rate is only 2%.
- There is no defined Roadmap for AMP, Flexa.
While mass interest and awareness about the cryptocurrency sector have grown in the last few years, certain hurdles remain in the way of adoption. The beginners often find it hard to pick the apt crypto coin for their needs. There are so many contenders on the bandwagon and newer ones are appearing almost every week! One worthy contender is the AMP digital collateral token. It is among the coins that were launched in the last quarter of 2020 and within a few months it has become a sought-after coin in the fast-evolving crypto sector.
The basics of AMP coin
The AMP coin was initially planned to be unveiled as Flexacoin. It is meant to decentralize risk in transactions by diminishing assurance costs from prevalent counterparty networks. It comes with a novel partition interface for facilitating staking contract interoperability. AMP adheres to the ERC20-protocol. It is the exclusive collateral token for the Flexa network. The latter is a merchant network relying on low-cost digital payments, embedded with a fraud-proof system. The maximum supply of AMP coins has been pegged at 100 billion.
Payments are guaranteed as AMP is there for collateral and that decentralizes risk. The merchant fee proceeds are utilized for buying AMP tokens autonomously. These tokens have smart contracts or on-chain collateral managers. These lock and release AMP for transactions made using other cryptocurrencies. The AMP token contract is irreversible and there is permission to fewer collateral pools. This means the participants can withdraw and supply funds without restrictions on time and finance. Amp is listed on Coinbase- a top trading platform and wallet support are growing.
So, AMP can be defined as a kind of transaction insurance. If a Flexa network transaction fails, the AMP cryptocurrency is used to balance the losses right away. Flexa network includes several exchanges and financial institutions so that complaint settlements can be offered. Flexa blends natively with existing online platforms and POS systems to enable payment processing smoothly. It benefits both the crypto token users and merchants supporting crypto payments.
What makes the AMP coin unique?
The AMP token protocol relies on a totally autonomous collateralization system. In regular collateralization, third-party vendors come into the picture and they charge steep fees. AMP gets rid of this with its decentralized digital alternative. In the AMP network, you get real-time payment finality assurance. Transaction processing item proves to be the Achilles’ heel for many cryptocurrency networks, as it has been seen. The users are able to collateralize their assets lightning fast using the AMP network. Besides, the AMP users gain from great interoperability. It supports more than 2 dozen digital assets.
How AMP works with the Flexa network?
The core idea behind the Flexa network and AMP coin is having a decentralized network with the operator of a centralized payment. AMP is the decentralized component while Flexa serves as the centralized operator. When using Flexa, you can select from a wide range of stable coins, tokens, and coins. The high transaction charges will not be there and the merchants can pick their preferred currency. Even fiat currencies are supported. The funds sent by the user will get swapped for the currency chosen by the merchant through apps like Coinbase or Gemini.
As you may be aware, converting one crypto coin into a fiat currency by any exchange can be delayed. The merchant may face the risk of not getting paid if the transaction fails. The AMP Token is there to be used as collateral. So, if the payment fails for any reason, an equivalent amount of AMP coin will get converted to fiat currency and given to the merchant. The AMP comes from people who stake AMP in the payment providers using the Flexa payment protocol.
What about staking AMP?
Nowadays, most cryptocurrency projects let users stake the native coins though the terms can vary from one to another. When you stake an AMP coin, these are put in a larger pool with other Amp tokens. From that pool, the tokens are put inside smart contracts so that individual transactions can be collateralized. An additional 1 billion AMP is issued each year as staking rewards. There is no lockup duration and users can withdraw tokens anytime they want. The downside is staking reward is just 2% which is lower compared to what other players offer in this sector.
The future of Amp and Flexa
The concept behind Amp token and Flexa network is a novel one-and it has been hailed by the sector veterans too. The benefits offered by the project are too large to ignore. The issue of delay in executing crypto transactions and conversion to fiat currency has to be addressed. Flexa adoption is growing and over 41,000 retail locations in Canada and the USA support it. As of now, it is of more use to the merchants than the crypto investors, per se. Besides, the coin value is still not high to be taken seriously. Lack of a clear roadmap for the project may also hurt adoption. The upcoming tie-up with Shopify however, may work in its favor.