Amp Token is a hot topic as the crypto faces delisting from Binance due to a Securities and Exchange Commission ruling.
This ruling has the SEC deciding that AMP is security instead of an asset. As a result, Binance is delisting the crypto as an act of caution. That delisting is set to take place on Aug. 15.
It comes from a lawsuit covering alleged insider trading at Coinbase. The ruling covers nine cryptos in total that it sees as securities. Of those listed, Amp was the only token trading on Binance. Amp is a digital collateral token that was first introduced in September 2020. It is considered to solve a problem and perform a function better than competing coins.
What Is Amp?
According to the Amp website, as a digital collateral token, the Amp can secure any asset users want to transfer, such as digital payments, fiat currency, loan distributions, and proceeds from property sales. Transactions are guaranteed through a process called staking. Staking uses smart contracts to freeze assets until the transaction has been verified and then release the funds to the receiving party. Because Amp is open source, developers can create apps that use Amp to secure transfers.
Amp’s parent company also created Flexa, an open-source digital payment processing network. Flexa guarantees transactions made using U.S. and Canadian digital dollars and several 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 can only process about 30 transactions a second. That means transactions can be pretty 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 requiring 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 relatively widespread use. Over 40,000 U.S. merchants now use the Flexa platform to process digital transactions — transactions potentially collateralized by Amp.
Working against Amp is the fact that it’s a “penny” cryptocurrency. Extremely inexpensive coins are like penny stocks because they’re highly speculative and could eventually prove worthless.
Why Amp Tokens Are Unique
Amp tokens are unique for their ability to secure transactions, making them faster and safer to execute.
Good To Know
Ethereum is the second-largest cryptocurrency, second only to bitcoin. This offers security to the amp token since it is based on the Ethereum network.
As the wild cryptocurrency swings of the last two years — and investor losses resulting from steady declines over the past six months — show, it’s impossible to predict future prices accurately. However, that doesn’t stop some analysts from weighing in.
With listings on major exchanges and cryptocurrency influencers like the Winklevoss twins investing in Flexa and Amp, there may be enough credibility for Amp to continue growing. However, all cryptocurrency investments are speculative, and while the potential exists to make money, it could also lose some or all of the investment.
As with all cryptocurrencies, investors should have a long-term strategy in mind. Amp is creating enough buzz that it might be worth taking a chance on. Perhaps the most impressive thing about Amp is that it is entering the market on the ground floor of smart contracts, helping to lay the foundation for the future of cryptocurrency.
For more information, https://ampraider.com/
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