Amp crypto was one of the standout tokens last year. So far, 2022 hasn’t treated it quite as well. But there is still reason to be optimistic about its future growth potential, thanks to access becoming more accessible than ever.
In 2021, as more money was sent into crypto markets, altcoins with a purpose were starting to get attention. The Amp token became a crypto-backed lending base. The asset that the borrower pledges are a guarantee that the loan is going to be repaid. And that attention exploded the portfolios of long-term Amp crypto holders. Not long after, it joined the popular crypto exchange, Coinbase.
Amp Crypto: Analysis Token Future
Amp has a solid social media presence on Twitter and a dedicated subreddit following. From there, the value of the Amp token comes down to four essential elements.
* Ease of investor access * A reason for increased adoption * Strong Tokenomics * A plan for future growth
Access to Amp Got a Lot Easier
While many exchanges already offered access to Amp crypto, it got a boost in interest when it was up-listed to Coinbase. It led to a massive increase in trading volume.
By offering insurance against loss, the Flexa network allows a merchant to accept an instant crypto transaction without forcing the customer to wait a long time. Simply put, Flexa and AMP are insurance for transactions.
The merchant pays a fee to accept cryptocurrency payments via the Flexa network. The Flexa fee is usually about 1%, compared to the 3% or higher fee merchants must pay to credit card companies.
If a customer pulls off a double spend or there is some other problem with the crypto payment, the Flexa network reimburses the merchant. In short, this token aims to be a collateral asset that can be used to lower payment fees and prevent fraud. If enacted to the whole vision, it could help make cryptos of all sorts safe, cheap, and usable for merchants.
In other words, Amp crypto is providing widespread adoption with an emphasis on using the currency aspect of cryptocurrencies.
The Tokenomics & Future of Amp Crypto
The goal of tokenomic analysis is to understand the potential value of a DeFi project by considering all aspects of a token’s creation and management, including its supply, allocation, and distribution. Tokenization is rewriting securities issuance through the automation of smart contracts, which create efficiencies, minimize risk and enhance market integrity. The Amp token and the Flexa network provide these assurances.
Firstly investors buy AMP and stake it. The staked AMP tokens act as collateral against loss. If a merchant doesn’t receive the crypto they were supposed to, enough staked AMP is liquidated to cover the merchant’s losses. The 1% transaction fees that the merchant pays are used to buy AMP on the open market and distribute it to AMP stakers. AMP and Flexa work together to create a decentralized solution to crypto payments.
Existing illiquid assets such as gold, real estate, shares of profits, and renewable energy can become divisible and represented digitally via the Flexa network.
Digital assets present the possibility to invest with fiat money and conduct P2P (peer-to-peer) trading on regulated exchanges, improving liquidity.
Broader investor base
Fractionalized assets allow investors to diversify their portfolios with assets they could not previously afford.
New and unique tokens can be created to facilitate the trading and settlement of otherwise illiquid assets that derive value from commodities and fine art.
Furthermore, when new projects adopt Amp, its implementation will result in increased liquidity and decentralization. It, in turn, should lead to enhanced value and reduced volatility as the Amp crypto enterprise spreads. The Amp foundation is based on being as flexible and future-proof as possible.
The more merchants that accept crypto payments via Flexa, the higher the staking yield. It is a model that the staking yield comes from real-world use and does not depend on constant token inflation.
Currently, Flexa reinforces the staking yield by distributing tokens from the US treasury. However, that will end once enough merchants use the protocol to support a generous staking yield. By leveraging its decentralized network of AMP stakers, Flexa gives merchants a way to accept instant crypto payments. Flexa can be easily added to most existing point-of-sale terminals, with no special hardware required. Switching to Flexa, and accepting crypto instead of a credit card, can save a merchant 66% or more on their payment processing fees.
Across the United States, Flexa is integrated with more than 40,000 merchants, and that number is growing fast.
The Amp team has taken a long view, and it could be an exciting token to consider in the coming years.
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Daily Pune journalist was involved in the writing and production of this article.