Asset

Amp

Crypto

Industry: Crypto

Performance

Relative Return Over Time


539.7%

Idea
Return

23.4%

Index
Return

516.3%

Relative
Return

Pitch Details

Type:

Intrinsic value underval…

Position:

Long

Duration:

12+ months


Target:

$0.07

Upside:

$0.07

Downside:

$0.01

Post as...

Posted 12/05/2020

Amp (AMP)

1.0

Quality

2.0

Performance

cryptoasset payments

Flexa Network $AMP — Analysis

The new paradigm for fast, fraud-proof and touch-free payments

Fraud and high fees in payments today are major problems for merchants.

Now, merchants can easily integrate Flexa using their current payments infrastructure. It allows them to reduce costs and frauds while enabling their customers to pay using crypto assets. Merchants can receive settlements in any fiat currency.

Spend on any wallet, with any crypto asset to any merchant.

Any wallet can build using the Flexa kit, allowing their users to spend cryptos at 30 000 retail locations in the United States. It’s already live on the Gemini wallet; more wallets such as Dharma, ZenGo and others are coming soon.

Flexa capacity using the AMP token

To mitigate the risk of theft or loss during settlement, a network of counter parties supply a collateral for every Flexa payment. In the event of a software glitch or breach, this collateral is instantly liquidated in order to guarantee that no Flexa merchant ever experiences lost volume.

Anyone can stake AMP on the Flexa capacity to be a counter party for the wallet of its choice and earn network fees. In 2020 / 2021, stakers also earn 5.75 % APY in AMP; it’s an incentive made by Flexa to encourage staking. With a total supply of 100B, 20% is currently used as a collateral to secure the network. About 76 % of the circulating supply is staked.

Flexa initially raised $14.1 million from VCs, selling the FXC token (later on “rebranded” / swapped to AMP for technological matters). At the moment, Uniswap is the best way to get AMP, but a Coinbase listing might be coming soon.

The price of AMP is tied to the growth of the protocol as stakers are rewarded with fees. Also, a higher AMP price allows a bigger spending capacity.

AMP is currently trading at $0,0065, so a market capitalization of $170 million. Looking at the valuation of the other actors in the payments sector, I think the network can become much bigger in the coming years.

Growth potential

Tyler Spalding, Flexa Co-Founder thinks the network could rapidly capture 1 % of the global payments volume in the world.

With more wallets and merchants adopting the protocol, it can create a strong network effect. I think that crypto wallets like Dharma integrating protocols like Uniswap and Flexa could be the killer apps for cryptos.

Other catalysts include:

  • Merchants, wallets and markets expansion
  • Online payments launch
  • Start of network fees distribution

CrowdCent's Take

GPT-3 TL;DR: "Flexa is a protocol that allows touch-free, fast and secure payments. Merchants get reduced costs and fraud and their customers can pay using cryptographic tokens. By staking AMP tokens, a network of “counter parties” protect the payments with their AMP collateral. Flexa aims to change the way people pay. Its network merges crypto payments and fiat settlements to allow anyone to pay any crypto asset to any merchant in touchless and fraud-proof way. Flexa is already live on the Gemini wallet, and more wallets are coming soon."

We're planning to build a digital asset (cryptocurrency) thesis model and analysis. Stay tuned for probability explanations of digital asset ideas.

Model Output

Probability of outperformance: - %

Percentile rank: %

How does the network capture fees? What is the fee structure and who decides on it?

 +1  Reply