A cup of coffee brings a 300% increase in a single day? Interpretation of AMP’s past and present life

Original title: "Binance has a single-day increase of 300%, but there is no splash in the Chinese area. What is AMP?" 》

Original author: Husband, Odaily Planet Daily

Recently, the increase in AMP  tokens has made everyone’s eyes bright, and the market display , in the past two days, AMP has rapidly risen from 0.005 USDT to a maximum of around 0.024 USDT, and now it has fallen back to 0.014 USDT. The highest single-day increase exceeds 300%, and the increase exceeds 4 fold in two days. However, the reason for the rise of  AMP  is only hotly discussed in the overseas community. On the other hand, no one cares about it in the Chinese community, and there is almost no report.

As an old token launched in 2020 and listed on trading platforms such as Binance, AMP’s “fraudulent” rise has aroused everyone’s concern Out of curiosity, what exactly is this project? To this end, Odaily Planet Daily has conducted multiple inquiries and used this article to introduce the reasons for AMP's rise and analyze whether there is long-term value support for readers' reference.

In the past and present life of AMP , the governance role has been weakened but increased sharply

Telling AMP  ; Before that, everyone needs to understand the Flexa project. Flexa was established in 2018 and is a network that provides fully digital transactions to ensure security. Unlike traditional payment methods, Flexa's payment process does not involve sending sensitive customer account information, but instead uses virtual tokens to pay. This digitization makes payments with Flexa fast and secure, with payments instantly transferred from customer accounts and converted by Flexa on demand. The settlement of every transaction is 100% guaranteed, providing consumers and merchants with convenient and reliable payment solutions.

From the introduction of Flexa, the vision is very similar to Alipay and WeChat Pay in China, but they are essentially different. The former uses cryptocurrency for direct payment. The latter is withheld on your behalf. The two differ in terms of asset ownership. But how does Flexa guarantee so-called 100% security?

This brings us back to AMP, as the native token of the Flexa network, its role is not only governance and staking, but also  Flexa The network is paying out collateral in the underlying cryptocurrency.

For example, user A pays merchant B through an application that integrates Flexa network. Assuming payment is made using BTC before payment, the user You need to first pledge AMP tokens equal to the value of the product as a deposit, and then pay via BTC. If the payment is unsuccessful, the AMP deposit will be compensated to merchant B.

This move can ensure the basic trust of both parties, because the payment network has a certain delay and cannot complete transactions as quickly as VISA at the time, and AMP serves as collateral. Products can maintain the security and stability of transactions to a certain extent.

However, with the development of time, the AMP  project has not entered the Chinese area too much, and can only be seen in stores and applications in a few countries. For example, in March 2021, Amp established key partnerships with leading decentralized lending platforms such as Cream Finance to enhance its liquidity supply.

However, on February 28th this year, the AMP Foundation announced the launch of two new projects:

· Ampera: The Ampera  project will become an underlying payment protocol with AMP mortgage tokens as the backbone. AMP remains Flexa 's underlying collateral asset, and Ampera will continue to support projects dedicated to diversifying trading risk. But AMP's on-chain governance will gradually be lost.

· Anvil: Anvil is a new mortgage protocol for issuing digital letters of credit, governed by the ANVL token. The core Anvil contract has been audited to ensure the highest security and reliability standards. To provide more immediate integration opportunities, Anvil has been deployed on a private test network. A final audit to incorporate remaining protocol changes will begin soon; all audit results will be publicly released before mainnet goes live. Additionally, the Anvil interface will be open source to allow developers and project teams in the ecosystem to use the Anvil contract most effectively.

It can be seen that the Ampera Foundation will remove AMP the original Flexa network governance function, although retaining its Flexa collateral function, but without the binding of Flexa, it may gradually be extended from collateral to payment tokens. From the official website of Flexa, we can see that in addition to some conventional tokens, such as BTC and In addition to ETH and other 99 cryptocurrencies, AMP will also be used as a payment token on the Flexa network.

The above is the AMP project in the past 4 years Developments and changes are indeed not enough to drive AMP's short-term rise. Odaily Planet Daily went deep into foreign communities to find out that there are two factors behind AMP's surge in the past two days.

Reason for the news: On March 12th, Gemini founders Winklevoss brothers used integration  Flexa The network's Gemini Pay buys coffee at Starbucks, for which AMP as Flexa 's mortgage token, rose by nearly 300% on March 12  ;. This incident should be the superficial reason for the rise of AMP. The founder of a well-known exchange used the Flexa network for offline payments, which greatly aroused the enthusiasm of overseas investors from the news.

Fundamental reason:As mentioned above, although the Ampera Foundation deprived AMP of its governance function, the new project  Among Anvil ’s token airdrop standards, the Flexa network’s AMP token pledge is eligible for airdrops. This news was announced on Twitter by the Ampera Foundation on February 28 this year, and stated that the snapshot time will be announced soon and will be announced 30 days in advance. Coins will be allocated to protocols, teams and community incentives.

But on February 4 this year, according to Scopescan monitoring,  Three whale addresses each pledged more than $1 million in AMP. These 3 whale addresses withdrew a total of 970 million AMP (approximately $3.5 million) from Coinbase and then staked it on the Flexa network. This move makes people suspect that the news of the AMP pledge to obtain Anvil airdrop has been leaked, and there is a certain risk of "rat warehouse".

Odaily Planet Daily reminds everyone that due to the uncertainty of the airdrop snapshot time of the new Anvil project, there is a certain limit to the rise of the AMP token today. Due to FOMO emotion, it is not yet certain whether you can obtain Anvil tokens by pledging AMP tokens. Please choose carefully if you are interested in pursuing higher prices.

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