Amplify Whitepaper Video Series - The Problems: Flow of Funds
One of the biggest obstacles for widespread adoption of Cryptocurrency stems from the bottleneck in the money flow from fiat to crypto assets. This is because few exchanges accept, or settle, fiat transactions and fewer exchanges still offer purchase of coins other than Bitcoin or Ethereum with fiat.
In order to exchange fiat currency to crypto assets, typically, token holders have to either buy Bitcoin or Ethereum before transferring those funds to a digital wallet on a separate exchange. Once you’ve acquired Bitcoin or Ethereum the purchaser of such digital asset then exchanges those cryptocurrencies for other altcoins.
Take a look at the current process required to purchase an alt coin such as SUB or AMPX
The first step is to transfer fiat from your bank to what we are calling a Gateway Exchange, something like Coinbase or Gemini. Gateway Exchanges are the few that offer fiat resolution but do not offer a wider availability of tokens to purchase with that fiat. During step 1 you will incur a fee and a wait time for the transfer.
Once the fiat has arrived in your account on the Gateway Exchange you take the next step of purchasing a Base Currency like Bitcoin or Ethereum, there is a fee charged at this step as well and there may be a waiting period imposed by the Gateway Exchange before you can move the tokens you purchased.
Next you will need to move the base currency tokens you purchased to an Altcoin exchange where there are tokens listed you are interested in purchasing. Some examples of this would be Binance or Bittrex. You will be charged a gas fee for the transfer and perhaps a withdrawal fee from the Gateway exchange as well as have to deal with another waiting period while the network confirms your transfer enough times for the Altcoin exchange to credit the deposit.
Now that your base currency has arrived at the Altcoin Exchange you can finally purchase the altcoin you have been researching. This final step of purchasing a token like SUB or AMPX will also incur a fee on most exchanges.
As you can see that process is long, complicated and expensive. On average you are incurring 3 waiting periods where the token you are looking at purchasing can potentially change in price enough where you are not interested. You are also incurring at least 4 fees throughout that process just to make one simple alt coin purchase from fiat.
Enter the Amplify Exchange.
With Amplify all of that is different!
The new process with Amplify will offer simple fiat to altcoin purchase reducing the amount of time a purchaser is required to wait from three separate waiting periods to ONE short waiting period.
Take a look at how simple the purchase process is with Amplify
The user simply executes a fiat purchase using their preferred payment method and then selects the altcoin they wish to purchase. If you want to use your bank account or debit card to purchase AMPX tokens its ONE…. SINGLE…. STEP.
This more simplified process will reduce the number of fees taken from a minimum of four to only a maximum of two and often one single fee. This will greatly reduce the barrier to entry and bottleneck to frequent use by essentially making the process more simple.