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Amp is a digital collateral token that was first introduced in September 2020. While the price has seen significant volatility since then, at the current price of $0.0137, it sells for more than 14% above its debut price. However, price alone does not determine whether a token is a good investment. For that, it also needs to solve a problem or perform a function better than competing coins.
What is Amplifier?
As a digital collateral token, amp can secure any type of assets that users want to transfer, such as digital payments, fiat currency, loan distributions and proceeds from real estate sales, according to the Amp website. Transactions are guaranteed through a process called staking. Staking uses smart contracts to freeze assets until the transaction is verified and then release the funds to the receiving party. Since amp is open source, developers can create their own apps that use amp to secure transfers.
Amp’s parent company also founded Flexa, an open-source digital payment processing network. Flexa guarantees transactions made with US and Canadian digital dollars, as well as a number of loyalty tokens and digital currencies. Amp is the preferred token on the Flexa network.
What are smart contracts?
Smart contracts are programs on a blockchain that run automatically when certain conditions are met. The placement of a smart contract on a blockchain makes it impossible to make changes afterwards, according to law firm Freeman Law, and it also ensures compliance – if a party to the contract breaches its obligation, the smart contract can automatically impose a fine.
Smart contracts are a turning point for cryptocurrency as they speed up transaction times. For example, the Ethereum network can only process about 30 transactions per second. That means transactions can be quite slow if there is a lot of traffic on the network. Smart contracts significantly reduce transaction times.
Is Amp Cryptocurrency a Good Investment?
Simply put: maybe.
Amp has a bona fide use – securing asset transfers, preventing fraud and default, without the need for a third party to verify or enforce the contract. And anyone can use the Amp network, according to Securities.io. All it takes is a compatible digital wallet.
Another advantage of an amplifier is that its quite widespread use† Over 40,000 US merchants now use the Flexa platform to process digital transactions –– trades possibly covered by amp.
Working against amp is the fact that it is a “penny” cryptocurrency. Extremely cheap coins are like penny stocks in that they are highly speculative and can turn out to be worthless in the end.
Why Amp Tokens Are Unique?
Amp tokens are unique for their ability to secure transactionsmaking the transactions faster and more secure.
Good to know
Ethereum is the second largest cryptocurrency, second only to bitcoin. This provides some security for the amp token as it is based on the Ethereum network.
Amplifier price prediction
As the wild price swings of the past six months – and the resulting losses for investors – show, it is impossible to predict future prices with any degree of accuracy. That doesn’t stop some analysts from thinking along, however. According to Capital.com, recent forecasts expect anything from a drop to $0.002 to a rise to $0.029 in the coming year.
With listings on major exchanges and cryptocurrency influencers like the Winklevoss twins investing in Flexa and amp, there could be plenty of credibility for amp to keep growing. However, all cryptocurrency investments are speculative in nature, and while the potential to make money exists, you could also lose some or all of your investment.
As with all cryptocurrencies, investors should have a long-term strategy in mind. Amp creates enough buzz that it might be worth giving it a shot. Perhaps the most impressive thing about amp is that it enters the market on the ground floor of smart contracts, laying the foundation for the future of cryptocurrency.
Daria Uhlig contributed to the reporting for this article.
The information is correct as of May 19, 2022.
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About the author
Katy Hebebrand is a freelance writer with eight years of experience in the financial sector. She received her BA from the University of West Florida and her MA from Full Sail University. Since she started working as a freelance writer full-time three years ago, she has written on topics in many fields, including housing, families and parenting, legal, and professional/corporate communications.