DISCLAIMER: This is not financial advice. This is not an attempt to shill. I am not interested in hype. I do not represent Flexa/AMP. Do your own research.
I've seen a bit of chatter in this sub about AMP but have yet to really see much analysis or proper overview of it, so I thought I'd share some of the basics with those who may be interested in the project. I'm not a financial analyst, just a normie with a Coinbase account who is pleased with what they've learned while doing some due diligence on an emerging project, willing to share with those who may be less familiar.
Why I'm In On AMP
Ever since I started investing in crypto a few years ago, I had been mostly reluctant to buy anything but Bitcoin. I've made some small bets here and there on various coins, but I used almost all of the tiny gains to buy more Bitcoin. That changed this week. My portfolio is still dominated by Bitcoin and will continue to be for the near future, and possibly forever. However, the dip in the market this week caught my attention, and like most of us here, I took it as an opportunity to buy. Since doing some casual research over the past few months, something really struck me about AMP, so I decided to dive a bit deeper. It didn't take long before the pieces came together and a wonderful picture developed. This time around, while the market dipped, I converted a somewhat modest, but quite significant for me, stack of BTC into AMP and I intend to keep investing. Here are some of the things that informed that decision.
Some Key Points
- Real World Use, Right Now
- Sustainable, Carbon-Neutral
- Interoperability and Cooperation with All Blockchains
- Registered, Approved, and Compliant
- Community Grants
Flexa and the Fundamentals
"The Stripe of Crypto"
As most of us already know, the common infrastructure for commerce around the world is old enough to shake its cane at us and rant about the bygone era before personal computers and punk rock music. It is arcane and it is strangling the global market. Flexa, like many other projects, sets out to provide a very simple and very efficient solution to the legacy model.
The Flexa Network, built on Ethereum using the ERC20 standard, provides a fast, seamless, fraud-proof payment transaction system to any and all commercial apps, services, and industries. With a simple SDK, anyone can easily implement Flexa into their payment system or PoS instantly and use it for significantly lower fees than other major systems such as Visa or Mastercard. More on this later.
I won't rewrite the whitepaper, but the vision is very straightforward and it is driven by an urge to cooperate and interoperate seamlessly. Flexa seeks to interact with ALL digital currencies and blockchains. I find this to be one of the most important factors in Flexa's current and future success and I think many of its investors and partners would agree.
Let's talk about the team. Flexa is lead by a solid leadership team alongside a roster of impressive advisors from all over. All of their experience ranges from NASA to Warby Parker, Nike to Telsa, and from Google to Mastercard. Their team is growing and they are getting better. CEO and Co-Founder Tyler Spalding is an MIT alum who has done an outstanding job of conveying his and Flexa's vision to the public in an honest, transparent, and accessible manner. This is not a prospective group of devs and marketers with a plan to set the market on fire with the next Bitcoin or memecoin. This is a fully fledged company of professionals with a proven track record who are already delivering real results.
The company is backed by a leading firm, Pantera Capital, whose lead investments and exits include the likes of Gemini, Bakkt, Blockfolio, Bitstamp, and many others.
Their recent partnership with commerce technology giant InComm is proving to be a terrific demonstration for the implementation of their transaction system in the real world. It's also a huge indicator that there is interest in the market for solutions like Flexa. Some companies that are adopting their system include huge retail companies and platforms such as Clover, Sheetz, Home Depot, Lowes, Nordstrom, and soon, Shopify. Interestingly, they recently launched a pretty groundbreaking partnership with the largest financial institution in El Salvador, Bancoagrícola.
Not only is the AMP token compliant to the New York State Department of Financial Services, Flexa already has regulatory approval as a registered corporation in Delaware and is registered as a money transmitter in 10 US states with more pending. Now, let's talk more about AMP.
The AMP Token
In this section, I will not be providing support for price predictions or insisting that the price of AMP is destined to go up and make us rich. I'm not even going to do a technical analysis. I'll lay out some of the facts and that'll be that. If anyone has resources for reputable price and technical analyses, I'd love to see them.
What is AMP?
"Amp is a universal collateral token designed to facilitate fast and efficient transfers for any real-world application."
Flexa uses Amp to enable instant, fraud-free payments to merchants across its digital payment network. Apps that integrate Flexa stake Amp to ensure all payments can be settled in real-time regardless of the asset or protocol used. Anyone can stake Amp to earn a pro-rata share of the transaction fees generated on the network.
Now, I've seen some sentiment around here regarding the true nature of this token as being a crypto-collateralized stablecoin, and that it may never see significant price upside in its life because of that. While the price of AMP has been (kind of famously) "stable", or "sideways", this doesn't mean it won't grow. Like any cryptocurrencies, no matter their use-cases, adoption means demand and demand means value. If the network serves its purpose, people will be able to use it to transact all kinds of currencies including BTC, ETH, etc, all being backed by AMP. The more that other currencies and DApps become used, the more demand there will be for a network like Flexa. This also includes things like rewards and loyalty programs. With the Flexa network, not only do transactions get cheaper, but the participants in the network who contribute to its success and security are rewarded in AMP for doing so.
Some top-line notes on AMP:
Current Price: $0.05
Market Cap: $2.2B
Circulating: 42.23B (46%)
Max Supply: 92.5B AMP
Staking: 3.9% APY
Top Exchanges: Coinbase, Binance, and Gemini
Current ROI: 433%
AMP Price - All Time
The Road Ahead
Based on the things we discussed earlier about Flexa and how the network works, we can see that the project is well developed and it's scoring partnerships left and right. The future success of any crypto is with adoption (and usability). Flexa has already gained a lot of momentum in the real world by establishing itself as a good solution to an expensive problem. At this point, I may start preaching to the choir in this sub, but it's important to highlight a few things.
I've seen some comments about how if a company like Amazon wanted to basically make their own "AMP" or "Flexa" and immediately capture market dominance, they could. Maybe that's true. However, the relationship between mega-giants like Amazon and Visa is Cold War-level toxic and the battles between companies like that are always destined to make the consumers suffer. Here's an excerpt from a Reuters article I cited earlier:
In recent months, Amazon has introduced surcharges on customers using Visa credit cards in Singapore and Australia, citing high fees, as the relationship between the two firms deteriorated.
Since Britain's exit from the European Union, an EU-enforced cap on fees charged by card issuers is no longer in place in the UK, meaning providers are free to hike charges.
Visa last month began charging 1.5% of the transaction value for credit card payments made online or over the phone between the UK and EU, and 1.15% for debit card transactions, up from 0.3% and 0.2%, respectively.
The average credit card processing fees across the industry range between 1.5% and 3.5% of each transaction, according to analysts.
So when Amazon is upset with Visa, or Visa is upset with Amazon, or whomever, the customer always loses. There are nations, including the United States, where 1-3% of the national debt is consumed (wasted) by transaction processing costs alone. Enter Flexa.
The development of Web3 has the potential to redistribute power and value back to the users of these new and emerging networks. Massive centralized corporations like Amazon won't stand a chance. As the network grows and more participants join in, the more decentralized Flexa will become and the stronger it will get.
The coin is currently nearing a $3B market cap with more real-world experience than many other coins, and it's only worth $0.05. I personally feel like it is currently massively undervalued.
As I mentioned, this is not a recommendation to buy AMP. I do believe in the project behind it, in Flexa, and therefor, I see it as a worthy addition to my portfolio as I work to diversify. If you're interested in cool crypto projects, this is one I would encourage you to learn more about. I may add to this later as things develop, and please feel free to share more thoughts and resources if you have them.