However, the Spedn and Gemini Pay platforms are still very much in their infancy and, consequently, there isn’t much incentive for users to buy and stake AMP coin. This alone makes it an interesting prospect for investors. It wouldn’t be an exaggeration to state that AMP has the potential to provide a significant boost to the uptake of cryptocurrency as a payment option for mainstream businesses and retailers. On paper, AMP is a pretty impressive project that solves a very significant problem in the world of cryptocurrency. The AMP pool currently has enough tokens locked in to collateralise almost $2bn worth of transactions.Ĭrypto asset investing is highly volatile and unregulated in some EU countries. The reward is a small share in the fees paid by merchants using Spedn and Gemini Pay. Of course, these users receive a reward for committing their tokens, as with most staking protocols. The collateral AMP comes from a pool that has been staked by users of Spedn and Gemini pay. In the event that there is an issue with payment, the AMP held in collateral is sold off for fiat currency to ensure the merchant still gets paid. When a transaction is made via cryptocurrency, an amount of AMP tokens greater than the total value of the transaction in question is locked into a smart contract. To get around the issue outlined above, AMP is used as a kind of collateral. What is required is some sort of insurance – a way of guaranteeing payments before blockchain confirmations are complete to ensure that merchants can accept cryptocurrency with confidence. From a business perspective, the payment has only fully cleared when crypto is converted to fiat and appears in their bank account. This risk is present for all crypto transactions. The possibility may be small, but the transaction could fail at some point. Naturally, this is unnerving for sellers as if something goes wrong, they are left out of pocket. This requires confirmations from blockchains, which can take hours, or even days. When transactions are made via cryptocurrency, merchants selling goods and services obviously want to know that they are getting paid. AMP is a cryptocurrency with a specific use case. Flexa is a payments platform operating in the US and Canada. The token was created due to technical limitations associated with Flexa which, according to the team behind the project, was not able to support their plans for the payments system.įlexa is an important part of the AMP story, but it’s important to note that these are two very distinct projects. The payments system is underpinned by the Flexa token, which appeared to be gaining attention, until the firm made the surprise introduction of AMP. Things are trickier, however, when making crypto payments that are not converted into fiat, which we will come onto later. Crypto are converted to fiat payments so merchants receive their payments in cash. The platform was originally funded by a sell-off of the Flexa (FXC) token, with several major venture capital firms involved.įlexa soon launched its Spedn payments app, which offered an easy way to pay for goods and services with leading cryptocurrencies. It was set up in New York by Daniel McCabe, Trevor Filter, Tyler Spalding and Zachary Kilgore. So is AMP going to help finally bring in a new age of digital finance? Or is this simply another overly ambitious crypto project in an already crowded space? In the following AMP price prediction for 20, we’ll be taking a closer look at the token and exactly what it has to offer the industry.ĪMP is actually the brainchild of Flexa, a cryptocurrency payments platform that’s been around since 2018. However, it seems that security is still the main issue holding crypto back–and this is something that AMP intends to rectify. Similarly, the issue of extreme volatility with digital currency has been solved with the invention of stablecoins. Initially, it was transaction speed that prevented BTC becoming viable on a commercial scale, but blockchains are much faster now. AMP seeks to reassure such doubters.ĭespite cryptocurrencies being in the headlines more than ever before and numerous blockchain-based industries emerging in recent years, many industry commentators have pointed out that digital currency is still yet to make good on its original remit of becoming a dominant payment method. Whereas few would deny that cryptocurrency is now more mainstream than ever before, there are still those who doubt its security as a means of payment. AMP is an intriguing project that essentially improves upon the original remit of cryptocurrency by providing a secure payment option via the Flexa network.
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