Help with my assignment!
Read Time:6 Minute, 54 Second

AMP crypto is a digital collateral token aiming to smooth out the friction in transacting with crypto. Check out our “What Is Amp?” Guide to learn more!

Covered:

  • What Is AMP Crypto?
  • What Is Flexa
  • Who Created AMP?
  • How It Works
  • What Is AMP Token?

What Is AMP Crypto And Flexa

AMP is an ERC-20 token that is used as a guarantee or collateral within the Flexa network.

Cryptocurrencies have several benefits over regular currencies, not the least of which is that they aren’t regulated or controlled by a single entity like banks or governments. Similarly, they have made it easier for people to make transactions directly or peer-to-peer (p2p) without any third-party involvement. However, the adoption of cryptocurrencies by merchants, vendors, and companies is still surprisingly low.

This is primarily because of the long and gruesome process it takes for a transaction to be validated in most blockchain networks. There is also the issue of high volatility in the price of cryptocurrencies. In order to enhance cryptocurrency adoption, these problems have to be resolved. This is where AMP and the Flexa network come into play.

AMP is an ERC-20 token that is used as a guarantee or collateral within the Flexa network. Flexa is a unique digital payments platform because of its point of sale (POS) hardware compatibility. It allows reduced transaction costs, minimal settlement times in addition to impeccable security.

Basically, what Flexa does is that it takes the user’s cryptocurrency, turns it into fiat currency by trading it at an exchange, and pays it to the merchant or vendor all within a few seconds. The Payments are also secured and guaranteed by Flexa’s ERC-20 token AMP. Whenever there is an issue with a payment, the recipient is compensated in AMP tokens. In this way, the users or merchants who use the network can be assured that their funds shall remain secure.

The Flexa network supports cryptocurrencies like BTC, ETH, and others as a payment source. It also allows its users to spend their crypto assets to buy stuff in the real world, as it has inked partnerships with thousands of retailers throughout the US and Canada. Furthermore, users can earn rewards by staking AMP to increase the network’s security. For every transaction that happens through the Flexa Network, the stakers receive staking rewards in the form of AMP tokens.

Who Created AMP Token?

The parent company of AMP, Flexa network, is a New York-based financial technology (FinTech) company that was created by Daniel McCabe, Trevor Filter, Ryan Records, and Tyler Spalding. Tyler Spalding is the CEO and face of the company. Spalding has extensive experience and has an impressive resume, having had important roles in NASA and Lockheed Martin. Previously the native token of the Flexa network used to be the FXC token, but in 2020, the AMP token was launched, and users were allowed to exchange their FXC tokens with AMP at a 1:1 ratio.

It was set up by mutual collaboration and partnership between ConsenSys and Flexa. CEO Tyler Spalding says, “Our team has been developing Amp and its capabilities for the better half of a year, and the collateral partitions and managers at the core of the new standard implement Ethereum-based technologies that have never been deployed at this scale”.

How AMP Crypto Works

Flexa offers merchants a variety of payment integrations and plug-ins that will enable their digital assets to be acceptable by using the network’s point-of-sale (POS) hardware and software. It employs the use of special barcodes called ‘flexcodes’ which the retailers can scan to authorize their transactions. These flexcodes are generated with every transaction; thus, they enhance the privacy and security of the consumer. In Flexa, the payment authorizations are instant and are made possible through AMP tokens.

AMP works as crowdsourced collateral that decentralizes payment risks completely and, in turn, gives staking rewards with every successful transaction. Flexa differs from traditional bank payments because they involve middlemen and reveal sensitive information about the customer’s account. Flexa overcomes these loopholes by processing payments with end-to-end encryption because, with every transaction, a digital authorization code has to be decrypted by the users. Once this code is decrypted, the amount gets transferred from the customer to the merchant. In this way, Flexa eliminates the chances of chargebacks and the reversal of payments.

Flexa

The model of Flexa benefits both parties involved in a transaction. On one hand, it brings a practical utility of crypto assets to the real world, thereby allowing cryptocurrency to be used as money. On the other hand, it benefits merchants in a number of ways, as it provides reduced costs, faster settlement, and elimination of fraud. It also provides them to tap into and gain access to the growing crypto market.

Flexa enables the deduction of an equivalent amount of crypto (be it bitcoin, ether, etc) from the user’s digital wallet in the process of a payment transaction. Basically, what this means is that if a customer wants to buy an item worth $10, and he wants to pay for it using BTC, then the customer can easily use Flexa to pay for the item, and $10 worth of BTC will be charged instantaneously.

Another positive aspect of Flexa is that it can guarantee payments in a wide variety of currencies. This means that it pays merchants in either digital currency (that is convertible) or in their fiat currency of choice. In a nutshell, Flexa allows quick and secure payments with the lowest fees, thus providing merchants with a meaningful alternative to the traditional payment networks. Because of its unique features, in just one year, over 41,000 enterprises have started using Flexa.

What Is The AMP Token?

AMP is the digital asset and the native collateral token of the Flexa payment network. AMP token makes the payments instant and secure on the Flexa network. It was initially built on Ethereum and in accordance with the ERC-20 standard for tokens. AMP tokens can be purchased or sold for either fiat currencies or different digital currencies. It has an active community of stakers. It also has several real-world use cases.

After its launch in 2020, the AMP token has seen rapid growth from $0.01 to an all-time high of $0.12. This was achieved due to an exponential growth in the number of Flexa users. The total supply of AMP is fixed at almost 100 billion (99,440,733,928 to be exact).

AMP Crypto

Since the AMP token is compatible with a large number of digital currencies, the users can be provided with near-instant confirmation in any transaction. AMP token being an ERC-20 token can be stored on any Ethereum compatible wallet like Metamask and Trustwallet, as well as other wallets as well.

Concerns

The primary concern that most users have highlighted with AMP and indeed the Flexa network is that they haven’t yet inked a partnership with a notable bank. Although they have integrated quite well with the likes of Coinbase and Gemini Pay, still it is important to understand that most people just aren’t that crypto savvy yet.

In order to make a sizeable impact and to bring in new users into its fold, it is of the utmost importance that a payment gateway can be secured with a prominent bank. This will also allow increased liquidity, plus the option of a whole range of transactions between different fiat and cryptocurrencies.

Where To Buy AMP Crypto

You can purchase AMP crypto through Binance.us exchange, similar to how you would buy another cryptocurrency. You can either place a market buy or a limit buy. With a limit buy, you determine the price you are willing to pay, and your order gets filled once the token price reaches your limit price. If you want to get your hands on the token quickly, you can place a market order, where you agree to pay the current price and have your order filled almost immediately. If you are interested in purchasing AMP, you can do so by visiting Gate.io. or Binance.Us.

The post What Is AMP? appeared first on CryptosRus.

Leave a Reply

Your email address will not be published.

  • bitcoinBitcoin (BTC) $ 20,282.00
  • ethereumEthereum (ETH) $ 1,358.95
  • tetherTether (USDT) $ 1.00
  • bnbBNB (BNB) $ 295.70
  • usd-coinUSD Coin (USDC) $ 1.00
  • xrpXRP (XRP) $ 0.480075
  • binance-usdBinance USD (BUSD) $ 1.00
  • cardanoCardano (ADA) $ 0.435576
  • solanaSolana (SOL) $ 34.05
  • dogecoinDogecoin (DOGE) $ 0.065969