In 2020 ever since Defi started gaining traction new projects based on blockchain technology started popping up. Recently I found about Amepay and here is my opinion about this project. In the end, it is upon you to decide whether to take part in it or not. I spoke with a man who was related to the project. Let us take a look at AMEPAY.
What is Amepay?
Amepay has a background in the POS system. Instead of using fiat currency for transactions, AMEPAY aims at using its own AME tokens. Like I have said in a few posts before, in order to replace fiat currency with crypto you need to have a flawless payment method. As of now AME supports can and pay. If AME succeeds at its mission people will feel like they are using a scan and pay app which is actually a positive.
What is the uniqueness of this project?
Most of the other projects that aim to create a Decentralized finance ecosystem, But AME is going to start with something different. Remember I told cryptocurrency is just a commodity? , I believe most of them are but AME is built to be a utility token. Their website says that they are currently running trials in 5 countries, AME aims at having a chain of merchants in the retail market, these merchants will have AMEPoS installed and you can pay your bills using AME. With almost all the projects this will be something that they plan to achieve in a later stage. That's something unique.
Is AME a Stablecoin?
This is where things get tricky, I said the conversation with Amepay team was on Telegram, I pinged an admin and the question I asked was How does AME plan to avoid price fluctuations? The very first replay I received was to contact another admin, the new one told me that they are not yet listed overcoming market volatility is something to be discussed later. When I asked again I was directed to another person ( Even though he is mentioned as a member of the team he was not in the telegram group, people were usually directed to him for purchase assistance). This person was able to provide the answers I was looking for.
AME is not a stable coin and hence it is not backed by a reserve asset. The team says AME is a decentralized utility token. To be a utility token and to be used as a currency it should not be affected by market volatility. The purchasing power of $100 is the same today and tomorrow ( the statement is technically incorrect but for short timeframes it is relevant) to be a perfect utility token AME should have this standard, let us examine the answers I received for my query on price stability.
- AME will be listed on some of the top 25 exchanges, this will give it price stability
Listing on a top exchange might not actually result in price stability, this listing will enable holders of AME ( By the time AME is listed there will be a considerable number of people who have AME received by Airdrop or Presale) to swap or trade it with another asset. Many of them who subscribed to the Airdrop will be looking to convert AME to fiat. Listing on a top exchange will result in high volume. In my opinion, it cannot ensure price stability.
- Buying back tokens from exchange
The whitepaper of Amepay mentions about achieving pricestability by maintaining reserve tokens. But according to the person I talked with they will use profits and buy tokens every year. The whole point of decentralization is to avoid the decision making power to stay with a single entity or government itself. But imagine the team throwing back this said reserve into market? the price will be hitting ground. In a moral angle buying back tokens will be falsifying the original demand , and they are doing it to makesure that supply and demand are at the perfect proportion. So I am not satisfied with this idea as a whole.
- A cashback offer
Now this is something that I believe might actually make a change. This was supposedly for attracting more merchants and users. But lets say a 5% cashback (In AME tokets itself) might be useful in stabilising price changes up to a certain amount.
How will AME deal with BAN or Regulation on cryptocurrency?
This is a very important factor since some countries are already considering regulating or banning cryptocurrency. The answer I got was not that satisfactory. They told me they are to transfer operations offshore and will operate in friendly countries.
WHAT IS THE IDEAL FUTURE of AMEPAY PROJECT ?
Here ideal is something I refer not as the best course but as the plans of AMEPAY.
It plans to reach 1 million merchants across different countries, AME already has a wallet application available in the app store or playstore. The application currently has scan and pay enabled and will be likely to see NFC integration. Like some both crypto projects AME might be launching their on crypto debitcard. The currently available wallet will be modified as an exchange.
The team says on its whitepaper that they have already planned on how to spend earnings on different areas. And they will be listing on a top exchange by December. They are already in talks with venture capitalists to raise funds ( I don't know the extend to which this will be beneficial since AME is a utility token).
CONCLUSION
With everything I understood reading whitepaper AMEPAY has an idea and a vision, but they do lack in som areas. I cannot guarantee that AMEPAY will be a successful project. But as a part of expanding userbase their is an airdrop. The tasks are a little tiedeos than usual, but you may get lucky. You can participate in the Airdrop by clicking the link below.
Receive $17 worth AME token for free
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Resources
https://amepay.io/
DISCLAIMER
In this post I do not encourage you to invest in any project directly or indirectly. I am not responsible for any losses that may occur to you financial or non financial due to engaging with this project. I do not assure you the legitimacy of this project. The article is an opinion piece based on the whitepaper and interaction with telegram group admins.
