What Is AMP Coin?
AMP Coin was created by Flexa, a crypto payments company based in New York City, and founded in 2018 by Daniel McCain, Trevor filter, Tyler Spalding, and Zachary Kilgore.
Tyler has been the face of Flexa since its inception, is an MIT and Harvard graduate who has worked for some of the largest aerospace companies in the world, namely, Lockheed Martin and NASA.
Flexa was funded by three private sales of the Flexa coin or FXC token in early 2018, early 2019, and April 2019.
The April sale raked in $14.1 million from big brand VCs like Pantera capital and access ventures. I couldn’t seem to find any details about the first two token sales, I’ll tackle the tokenomics in a bit.
Now less than a month later, Flexa revealed that sped an app, which lets users pay at over 30,000 merchants in United States, with Bitcoin Ethereum and Geminis GUSD stable coin.
In the months that followed, Flexa added Litecoin and Z cash to their supported cryptocurrencies, and expanded their operations into Canada, on boarding an additional 10,000 merchants.
In July 2020 Coinbase revealed that Flexa coin was one of the cryptocurrencies, they were considering supporting on the exchange. Now, oddly enough, just a few hours later, flexa suddenly announced a new token called AMP.
which had been quote in the works for the better half of the year, with the help of consensus. According to flexa. The reason they created was because of the Flexa coin smart contract, could not be upgraded to support the new functionalities they were looking for users were able to convert their FSC into a one-to-one ratio in September, 2020, which is when I last covered the project and listed on Coinbase in June this year and since that time it’s been in the headlines, quite a bit. So, how exactly does it work.
How Flexa Works
I’ll start by saying that flexa and are two separate technologies flexas payment protocol, makes it possible to pay using 22 cryptocurrencies and for stable coins at over 40,000 merchants in the United States and Canada. What makes flexa different from other crypto payment services is that crypto payments with Flexa are automatically converted into whichever feared the merchant wants.
These changes from crypto to fiat are done behind the scenes consequently utilizing digital currency trades Flexa has banded together with which wire the cash to the Merchants Bank account.
This is pretty clever and also scalable because exchanges like Coinbase and Gemini are available in hundreds of countries around the world, and they also have bank accounts in most major regions, which means quick and easy payments for merchants.
The only thing merchants have to do on their end is scan the one time QR code on your phone that’s generated, the same way they would scan a gift card.
Because Flexa is developed by a for profit company, their payment protocol is not open source, you also need to complete KYC to use the sped app, as well as the Gemini pay app, which also uses Flexas payment protocol.
How AMP Works
Paradoxically, the AMP token is open source and any organization hoping to get into crypto installments can utilize it as their very own feature installment convention.
The purpose of the AMP token is to act as collateral for any cryptocurrency transactions made using the Flexa payment protocol to understand how this works, and why it’s important. Imagine you’re paying for a Donut at Dunkin Donuts with Litecoin using sped.
This can actually be done by the way, and to know that your LTC payment is final Dunkin Donuts, needs to wait for 12 confirmations IE, 12 blocks.
Now obviously that’s not ideal, but there’s no alternative. If the merchant assumed the LTC transaction to be good, the moment it was made. There’s a possibility, however small that the transaction could fail for whatever reason, be it a chain hold, or a hard fork.
This possibility exists for every single cryptocurrency, even those like Algorand which provide instant transaction finality. The moment a block is made. Not only that, but this risk continues to exist until that crypto is converted to feared behind the scenes and sent to their bank, which is something that also takes time.
So to solve this issue, an amount of AMP tokens worth, slightly more than your LTC transaction are temporarily locked into a special smart contract. Let’s just say that this is $3 of AMP for your $2 donor.
If something goes wrong with your LTC payment, those AMP tokens are automatically sold for feared On Gemini or Coinbase, to make sure the merchant gets their money. The slight over-collateralization of AMP means that they’ll get their $2 even if the crypto market is crashing centralized, decentralized finance at its finest.
The AMP security for crypto installments comes from clients who stake their tokens with installment suppliers, utilizing the Flexa installment convention, which are obviously sped in and Gemini pay.
Tokens marked with crypto installment suppliers are basically placed into a solitary savvy contract, which fills in as a type of guarantee save for the help.
This held brilliant agreement, infrequently secures little partitions of application in more modest keen agreements, which collateralized explicit cryptographic money exchanges, similar to the theoretical one we just went through, marking should be possible utilizing the Metamask wallet on the Flexa limit application page.
there’s around $1.7 billion worth of exchanges, which can presently be collateralized by AMP Coin. In return for marking AMP clients, acquire a little cut of the trader charges those installments AMP get.
These expenses are not exceptionally rewarding right now as these applications are simply beginning to acquire reception. This is the reason an extra 1 billion AMP Coin each year will be given to AMP Coin stakers For the following not many years.
Sadly, AMP marking rewards are not extremely worthwhile, even with this extra symbolic issuance, essentially as per the marking rewards site.
On the splendid side, there is no lock up or open period, despite the fact that a few tokens are locked every once in a while.
This is on the grounds that the convention expects that not every person will pull out simultaneously, and we’ll basically give you AMP from the save contract in case yours is at present secured as crypto exchange insurance.
AMP Coin Tokenomics
To the extent tokenomics, AMP Coin has the biggest store of 100 billion, which is the exceptionally most outrageous stock that Flexa coin had, considering the way that not all FXC tokens were recuperated for its outright stock is just north of 99 billion.
It appears to be that those 800 million missing AMP can in any case be made utilizing the Flexa limit application, as there is no cutoff time for transformation, as FXC AMP pie is isolated as follows:
25%, to the trader Development Fund
25% for designer awards
20% For flexes originators and workers
20% was sold during Flexas three symbolic deals
10% has been saved for the Network Development Fund
Presently, this load of tokens is liable to vesting plans, note that this vesting plan lasts until 2045, which might be the longest vesting plan. I’ve yet seen for cryptographic money.
In the event that you’ve at any point investigated AMPs current dispersion on ether filter, you presumably have as many inquiries.
In a new AMA with the M people group and Flexa prime supporter Tyler Spalding, he was gotten some information about that three wallets tend to which all in all hold 75% of the AMP token complete stockpile.
As per Tyler, the biggest wallet is the marking keen agreement, and the other two are application tokens, held in authority by Coinbase and Gemini.
The thing is the biggest wallet address is certainly not a keen agreement address, else it would have that little paper symbol, similar to the next two wallet addresses.
Talking about the other two wallets tends to the quantity of AMP tokens in the subsequent one lines up impeccably with the measure of AMP tokens being marked according to flexes limit application.
Presently, it’s conceivable that Gemini is basically the caretaker of all the AMP being stated however this clashing data is a bit concerning.
AMP does not have a roadmap, unlike most crypto projects. As for Flexa, it has a roadmap, but it’s unclear.
Most of flexes upcoming mastered or unpacked by co-founder, Tyler Spalding, in that aforementioned AMA, with the AMP community.
For starters, Flexa should be completing its integration with Shopify, by the end of the summer, which would add support for another 1.7 million merchants.
Flexa is also working on making it possible to stake AMP tokens from directly within certain crypto wallets presumably the Coinbase wallet, and the Gemini wallet.
This is because, staking and using meta mask on flexes capacity can cost an arm and a leg in Ethereum gas fees to further facilitate and token transfers and staking flexa is also looking into integrating with layer two scaling solutions on Ethereum.
Flexa is also working on making AMP a spendable token on the spend app, along with a whole slew of other assets.
Now I couldn’t help but notice that flexa is even looking to add China’s digital yuan to its payment app, something which is apparently only noted in the presentation by co-founder, Trevor filter, made in June.
This could be foreshadowing flexa foray into Chinese markets but I don’t imagine that will be happening anytime soon. Given that China has been cracking down hard on crypto. I didn’t think US regulators would allow it either, which conveniently brings me to the other curious coincidences, I came across while researching.
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