Token PIck of the Week: AMP

I’ll be sharing tokens and other crypto assets that have potential and are still relatively cheap.

This week, I’m looking at Amp (AMP).

What is Amp?

  • AMP is an ERC20 token that’s used as collateral in the Flexa network. It is used as temporary collateral until the cryptocurrencies are converted into fiat.
  • The AMP token is designed to facilitate fast and efficient transfers for any real-world application.
  • Flexa is the payments services company that created AMP. The company’s primary responsibility is getting merchants to accept crypto payments via Flexa.
  • Flexa claims to be “ the leading provider of the fastest and most fraud-proof payments network in the world”
  • Flexa ofers a cryptocurrency payment network that makes it easier for merchants to accept crypto payments.
  • Flexa and AMP work together to solve the classic problem in crypto: how to buy a cup of coffee with your dogecoin or bitcoin.
  • If you’ve ever sent BTC you know that the transaction often shows up in the receiver’s wallet within seconds, however, the transaction is not confirmed until much later.
  • Most merchants require 30 to 60 minutes (3 to 6 confirmations) to guarantee that they don’t lose money due to a double spend or chain reorg. That long wait time is where AMP and Flexa come in.
  • With Flexa, the merchant won’t have to wait and can instantly process the transaction.
  • In the event that a customer pulls off a double spend or there is some other problem with the crypto payment, the Flexa network reimburses the merchant.
  • By insuring against loss, the Flexa network allows a merchant to accept an INSTANT crypto transaction without forcing the customer to wait a long time.
  • The simplest way to think about Flexa and AMP is as insurance for transactions.
  • The merchant pays a fee to accept cryptocurrency payments via the Flexa network.
  • The Flexa fee is usually about 1%, as compared to the 3% or higher fee that merchants must pay to credit card companies.

What about the AMP token?

  • You can 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.
  • With this model you can see how AMP and Flexa work together to create a decentralized solution to crypto payments.
  • The merchant can accept instant (zero confirmation) payments since they are insured against loss. AMP stakers receive a passive income while accepting the risk that a small portion of their tokens could be sold to reimburse a merchant.
  • The more merchants that accept crypto payments via Flexa, the higher the staking yield.
  • Currently, Flexa is propping up the staking yield by distributing tokens from the treasury, however, that will end once enough merchants are using the protocol to support the staking yield.
  • If you don’t want to stake AMP, you can buy it as a speculative trade which is what I aim to do.

Is now a good time to buy AMP?

Regal Cinemas recently announced a partnership with Flexa that will let their customers buy movie tickets with crypto using their smartphone.

If you’re interested in seeing how this work IRL, check out this video.

Flexa is working hard to sign up more merchants, both offline and online. They’re even working on a Shopify plugin which could be huge in helping AMP gain adoption.

Rather than just hit the buy botton, let’s see if we can find a better entry price.

As you can see in the chart below, AMP has had trouble staying above 0.07.

That said, it’s trading above both its 50 and 200 SMA, and as long as these MAs can hold as support, I think AMP still has room to run.

A good place to enter is to wait for a retest of the 200 SMA area and buy at 0.055.

Take profit at 0.12 and set a stop loss at 0.045.

A more aggressive entry would be to buy at 0.06.

Remember to DYOR. These are just ideas to think about.

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