Amp is a digital collateral token that was first introduced in September 2020. Its price has seen significant volatility since then. At its price of $0.004801 as of Sept. 29, it sells for 60% less than its debut price. However, price alone doesn’t determine whether a token is a good investment or a bad one.
Also consider whether it solves a problem or performs a function better than competing coins.
What Is Amp?
As a digital collateral token, amp can secure any type of asset users want to transfer, such as digital payments, fiat currency, loan distributions and proceeds from property sales, according to the Amp website. Transactions are guaranteed through a process called staking. Staking uses smart contracts to freeze assets until the transaction has been verified. It then releases the funds to the receiving party. Because amp is open source, developers can create their own apps that use amp to secure transfers.
Amp’s parent company also created Flexa, which is an open-source digital payment processing network. Flexa guarantees transactions made using U.S. 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 execute automatically when certain conditions are met. A smart contract’s placement on a blockchain makes it impossible to modify after the fact, according to the Freeman Law firm, and it also ensures compliance — if a party to the contract fails to follow through on their obligation, the smart contract can automatically impose a penalty.
Smart contracts are a turning point for cryptocurrency because they speed up transaction times. For example, the Ethereum network only processes about 30 transactions a second. That means transactions can be quite slow when there’s a lot of traffic on the network. Smart contracts cut transaction times down significantly.
Is Amp a Good Investment?
Amp has a bona fide use — securing asset transfers, thereby ensuring against 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 that’s needed is a compatible digital wallet.
Another benefit to amp is that it has fairly widespread use. Over 41,000 U.S. and Canadian merchants now use the Flexa platform to process digital transactions — transactions potentially collateralized by amp.
Why Amp Tokens Are Unique
Amp tokens are unique for their ability to secure transactions, thereby making the transactions faster and safer to execute.