Amp is an Ethereum based token issued by the Flexa network and Flexa is a payments platform aimed at solving all current problems associated with many cryptocurrency transactions.
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Amp is an Ethereum based token issued by the Flexa network and Flexa is a payments platform aimed at solving all current problems associated with many
cryptocurrency transactions. These include
· Merchant fee,
· Fraudulent card charges,
· Chargeback problem
· And speed of transactions and security
How do Flexa and Amp Work?
The idea is to have the operator of a centralized payment combined with a decentralized network that makes it trustworthy and secure. Flexa acts as the centralized entity, and AMP is decentralized. Since Flexa is centralized, some aspects of its operations are proprietary.
The basic plan behind how Flexa works.
When using Flexa the variety of stable coins, coins, and tokens framework 22 options. When using the SPEDN app or Gemini Pay (Gemini leverages Flexa’s payments) at a store that supports Flexa, the merchant will scan a QR code on the app, and the funds will be sent.
In addition to not having to pay high fees (about 1%), there’s another great feature for the merchant, which is that they can choose a default currency to be paid in, including fiat currencies. The funds as investor send will automatically be exchanged for the currency favored by the merchant using Coinbase or Gemini.
Card fraud is a big issue and it can cost the merchant. Converting one crypto to a fiat via Flexa is instant. Therefore, without any collateral, the merchant would take a risk of not getting anything at all if the transaction doesn’t go through. To solve this issue, AMP Token is used to collateralize each transaction. Those who Stake AMP in any of the payment providers leveraging Flexa payment protocol, which are SPEDN and Gemini Pay.
Because of how the whole ecosystem around Flexa payments works the success of Amp is securely tied to the achievement of Flexa. However, AMP is a universal token for collateralization which means that others could also adopt Amp. In fact, there are already some DeFi projects which do this. If Amp can establish itself as a truly universal collateralization token it could split from Flexa and experience much stronger growth compared to Flexa.
Tokenomics
Holders of Flexacoin have the right to swap their Flexacoins to AMP in a 1:1 ratio and no further AMP has been released, the maximum supply of AMP is 100 billion, same as for Flexacoin.
However, not all have been swapped, which means that the current supply for AMP will remain slightly below 100 billion until the remaining ones are exchanged. When it comes to the vesting schedule of AMP, it’s extremely long and will be done in 2045. As more and more people are clear to sell and take profits it can (and will) provide selling pressure.
When it comes to token allocation there are three addresses that currently hold a combined 75% of the total supply. There was some uncertainty regarding the owners of those addresses. The three addresses are supposedly Gemini, Coinbase and the staking smart contract. Now, a few months later, it’s clear that one was in fact, Gemini and one the staking smart contract, and they can be verified by looking at Amp’s website where the addresses are listed.
However, the Coinbase custody wallet address is wrongly listed but after tracking transactions the now mysterious address should in fact belong to Coinbase. However, it does not have the smart contract page symbol that both the staking contract and Gemini address have.
Concerns For AMP
Amp not really being decentralized. Why because Flexacoin was likely migrated to Amp because Flexacoin would never have been allowed to be listed on Coinbase since it would have been viewed as a security. Therefore, Flexa wanted to separate the token and the payments network by creating an open-source token.
The utility is completely the same and while the token theoretically is decentralized, it’s 100% reliant on the success of a centralized entity, Flexa.
Flexa and Amp did dodge a bullet of regulations last year. However, since it’s so obvious how tied Flexa and Amp are, along with the fact that regulations around cryptocurrencies are getting tighter, there is a great regulatory risk surrounding Amp.
Another potential issue is the lack of information surrounding Flexa’s early history. There were very few details about the project, although they have been securing major partnerships which normally seem to be impossible if the project isn’t good. It could imply that someone in Flexa has good connections to take them where they need to be, but that’s pure speculation.
In addition, this lack of information is pointed out in updates around specifically the Shopify partnership. The fact that they haven’t updated their website in regards to the topic.
Conclusion
Crypto payments are coming and that the current infrastructure needs upgrades in order to make crypto payments ubiquitous. Flexa has had a great start with key partnerships already formed, with more to come.
The founders of Flexa are determined and at least looking at past partnerships they seem to know what they’re doing. nevertheless, there are loads of uncertainties when it comes to both Flexa and Amp. As for being a safe investment and relying on the hopes that everything is okay under the hood isn’t anything to go by.
Keeping an eye on the project is recommended. Not in an investment way but rather to look at the development of crypto payments. Flexa is without a doubt a key player for crypto payments and it’s interesting to see where they’re headed.
For more information head to https://ampraider.com
Contact Info:
Name: Warren Breakwell
Email: Send Email
Organization: AMP Raider
Address: 13 Belmont Road, Berwick, VIC 3806, Australia
Website: https://ampraider.com/
Release ID: 89076467
