When using traditional payment networks, transactions can be slow and insecure, especially when we trust them to intermediaries. Even with the introduction of blockchain technology, security and speed cannot be ensured at the same time. You will always have to sacrifice one to achieve the other. Crypto token Amp aims to solve this problem once and for all with an innovative decentralized solution that promises you both speed and security.
The Flexa Network and the Birth of the Amp Token
To understand how AMP works, it is important to know about the crypto payment platform − Flexa Network. Founded by Tyler Spaulding, Trevor Filer, Zachary Kilgore and Daniel K. McCabe in 2018, Flexa is an open network that facilitates instant payment for cryptocurrencies both online and at merchants. SPEDN is an application developed by a payment protocol through which users can make crypto payments in Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and more at over 40 merchants in the US and Canada. FlexaCoin (FXC) was the native token of the Flexa Network.
On September 8, 2020 Flexa Network announced transition from FXC to Amp token. Why AMP? The security of cryptocurrencies for merchants during a transaction is one of the main issues. Merchants want to know if the crypto payment they received is verified. Currently, the confirmations on the proof of work (PoW) blockchain required for this can take up to several hours. If we switch to blockchain with proof of stake (PoS), the transaction completion time may be faster, but the networks will be more vulnerable to attacks.
The Amp project seeks to address both speed and security concerns with its native AMP token, which is used to enable asset transfers. How exactly does he do it? Let's discuss.
What is an Amp (AMP) token?
The Amp Token (AMP) is a digital collateral token that facilitates instant and secure crypto transfers that are effectively used in real-world environments such as payment transfers to merchants, payments to individuals, and decentralized finance (DeFi). It is an ERC-20 compliant token that universally interacts with external transaction protocols.
Flexa Network created the Amp token to address many of the shortcomings of FXC smart contracts, as their infrastructure could not be upgraded to support many of the advanced features. In September 2020, Amp tokens were offered to FXC holders at a 1:1 rate.
AMP has a fixed maximum supply of 99 tokens, which protects its value from inflation. When a new company accepts the Amp token, existing users of the token benefit as liquidity increases.
How does AMP work?
The Amp token is an open source token. Any merchant or company wishing to use a cryptocurrency payment gateway for their daily transactions can use AMP. The primary purpose of AMP is to serve as a collateral for crypto-currency transactions through applications such as SPEDN that use the Flexa payment protocol.
Users stake on AMP to help balance collateral pools and maintain collateral integrity. With AMP collateral, you can enable all types of exchanges of value, from digital payments to lending and real estate sales.
The amount of AMP spent cannot exceed the total amount of AMP contributed to the Amp collateral pool. However, as the amount of AMP spent gets closer to the amount of AMP contributed to the Collateral Pool, the rewards will skyrocket. Each app used for AMP staking has its own collateral pool. Therefore, as users are attracted to different collateral pools to earn more rewards, the pools will balance naturally, reaching a healthy balance.
AMP works on the basis of two main functions: collateral manager and token sharing.
Anyone using AMP as collateral will be able to create a collateral manager that acts like an escrow account that can be customized with certain rules to suit their purposes. The Amp contract has token sections that allow multiple collateral managers to apply different rules to separate areas associated with the same digital address. With token partitions, you can stake on AMP without having to transfer it to another smart contract.
What is AMP used for?
We have already discussed the two main use cases for Amp tokens on the Flexa network - securing cryptocurrency transactions and staking. Users can wager their Amp tokens for rewards in the form of reacquired AMP. AMP rates do not have any blocking periods.
AMP users can also use the Amp token for governance. Voting is done off-chain via Snapshot, a gasless voting platform for the crypto community. AMP users can vote on all community proposals to have a say in the future direction of the Amp protocol.
Staking AMP
The main AMP staking platform is the Flexa Capacity App, but you can also AMP staking on other supported DeFi platforms such as Uniswap and Balancer, as well as wallets such as MetaMask and Trust Wallet.
Here's how you can easily get busy staking AMP in app Flexa Capacity in just a few steps:
- Connect your wallet to Flexa Capacity. There are six wallets to choose from: MetaMask, Coinbase Wallet, Rainbow, Trust Wallet, Argent and Wallet Connect. You can connect a hardware wallet to MetaMask before linking it to Flexa Capacity.
- Choose one of the available staking options.
- Your total AMP balance will then be displayed. Select your preferred AMP staking protocol and the amount you would like to stake, then click the Continue button.
- After the transaction is completed, you will see the updated AMP balance and rewards.
To stop AMP staking, follow these steps:
- Connect your wallet, then go to your AMP balance and click the Move button next to the asset you staked.
- Select the amount of Amp tokens you wish to collateralize and click the Continue button. Wait for your pledge to be unlocked. (Note: While you can withdraw your AMP deposit at any time, please be aware that processing times may be longer, from minutes to hours, if your AMP is currently being used to provide a cryptocurrency transfer or if the Ethereum network is congested.)
- Select "Move to Wallet" to return the tokens to your wallet, then click "Continue".
- Wait for the confirmation of the transaction, then check the AMP balance.
AMP Price Prediction
AMP was launched on September 9, 2020 at $0,009 and remained stable for several months until the end of January 2021, when it began to rise rapidly, peaking at $0,036 on February 14, 2021. In April, the price retreated slightly, and then went up sharply, reaching local highs of $0,06 on April 19 and $0,07 on May 9. However, the price of AMP soon dropped sharply, reaching the $0,03 support level by May 24th.
In early June 2021, AMP was listed on Coinbase and shortly thereafter, on June 16, 2021, its price skyrocketed to an all-time high of $0,12. The high price level could not be sustained, and it quickly declined to the $0,04 support level by July 21st.
Throughout 2021, AMP continued to experience several local peaks. However, since January 2022, the price of AMP has broken through the support level and entered a long-term downtrend, stabilizing at around $2022 by the end of 0,003. In mid-January 2023, AMP began to show signs of growth again and is currently trading at $0,005 (as of January 25, 2022).
According to the forecast price prediction, the value of the AMP token could rise to $0,017 in 2025 and cross $0,20 by 2030. While DigitalCoinPrice also has the same price prediction for 2025, it expects more modest growth in the long term, predicting AMP's value to rise to only $0,0485 by 2030.
Is AMP a good investment?
The Amp token is developed and maintained by the Flexa team, which has a decent presence in the market. They have been operating since 2018 and have experience serving millions of customers around the world. All smart contracts of the token are thoroughly tested and verified by security researchers from well-known organizations such as Trail of Bits и Consensus Diligence.
The Amp token has also been adopted by many blockchains and giants of the DeFi industry. Projects such as Uniswap, SushiSwap, Balancer, chainlink and Loopring are collaborating with the Amp protocol to extend their functionality. As the Flexa Network scales and more and more AMP is introduced into different protocols, this will lead to increased liquidity and decentralization, thereby improving the quality of AMP provisioning.
The security of the Amp token and strong partnerships give us confidence that AMP and Flexa Network will be here to stay. Therefore, we are confident that AMP will steadily increase in price as the level of security increases. However, our opinion should not be taken as financial advice, as altcoins are particularly susceptible to market volatility. Therefore, it is always recommended to do your own research before investing in altcoins.
Final thoughts
A one-of-a-kind collateral token service for secure transactions, the Amp protocol is not only a smart integration into the existing Flexa payment protocol, but also a solution to the entire blockchain trilemma of scalability, security, and decentralization. As the adoption of cryptocurrencies accelerates in the coming years, we may see a real need for the Amp provisioning process.
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