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What Is apM Chain?

Published on Jan 13, 2023

Updated on Sep 02, 2024

apM Chain is an Ethereum-based customer rewards blockchain platform for a group of Korean fashi

apM Chain is an Ethereum-based customer rewards blockchain platform for a group of Korean fashion malls.

As an article on the project's Medium profile mentions, it is called apM because it combines a.m. and p.m., the two designations of time throughout a 24-hour day. apM mall is supposed to mean "the mall that never sleeps."

The apM Chain Platform uses blockchain and cloud technology to set up and optimize its proprietary customer reward system. This system was initially meant for use by the apM group with plans to gradually expand the implementation of the technology to the surrounding market.

The main purpose of the apM Coin is to allow buyers or customers to earn rewards while making their purchases. The system is also meant to help the business analyze the market using customer data from the apM Chain Platform.

What Is apM Chain: Quick Facts

apM Chain Platform is a blockchain-based customer rewards platform built on Ethereum.
It is mainly developed for the apM group, a significant player in the Korean fashion market for the last two decades.
The apM group gets over 10,000 visits daily and over 1.5m annually.
The apM Chain Platform works with two currencies: apM Coin and apM Cash.
The platform's reward tokens are called a.points.

How apM Chain Works

The apM Chain is meant for use in the businesses affiliated with the apM Coin project. As the name indicates, the most prominent partner of the apM Chain platform is the apM group itself. However, it does have aspirations to grow to other businesses as well.

Before we get into what is apM Coin used for, let's briefly cover how does apM Chain work overall.

Dual Coin Economy

The apM Chain Platform has two types of currencies in the system.

apM Coin – an ERC-20 token available on cryptocurrency exchanges
apM Cash or a.points – a unit of currency not available on exchanges. apM Cash is meant as a currency to be used by customers and vendors in the businesses that use the apM Chain platform.

System Architecture

Base Layer

The apM Chain is built on the Ethereum blockchain. The platform also utilizes the InterPlanetary File Storage system, a Web 3.0, blockchain-based decentralized storage system.

Business Layer

The middle layer of the platform is meant for businesses to develop or tailor according to their needs. The apM Chain platform makes Software Development Kits available for this layer.

This layer includes the core payment functions like token, QR code and voucher management. It also includes the data analysis part of the platform, including data and customer relationship management.

Application Layer

Lastly, we have the layer that includes the User Interface - the part of the program that the users interact with. It includes the apM mobile app, an integral part of the platform and an admin portal.

What Is apM Coin Used?

Now that we have answered 'how does apM Chain work?', we can look into the chain's native coin's uses.

Buying Reward Tokens

The foremost use of the apM Coin is for users to buy reward tokens or apM Cash. They can then use these reward tokens to buy services and products in the businesses affiliated with the apM Coin project. The more purchases they make, the better their benefits will be in the customer loyalty program.

Buying Digital Vouchers

Besides apM Coin and the reward tokens, there is another type of smart asset on the apM Chain Platform. This type of asset is called a Smart Voucher, which is a Non-Fungible Token. Smart Vouchers serve as a prepaid mode of payment for shops, cafes, food trucks, etc., integrated with the apM platform.

Customers of the apM Chain platform can directly purchase these Smart Vouchers with their apM Coin. This is in contrast to how they would purchase other products and services which require reward tokens or apM Cash as the payment currency. apM aims to drive 10-20% of its revenue using these NFT vouchers. So, they are a significant asset in the apM ecosystem.

apM Chain Platform Founders / History

Richard Seok is the CEO of apM S&S and the founder of the apM Coin project. He has been associated with the apM group since 2008 as a Managing Shareholder of the apM malls.

Besides the CEO, Jung Him Kyo is the CMO of the project. He has a history in the Dongdaemun market longer than Richard has been affiliated with the apM group. He ran multiple stores in the market for over two decades. The most prominent stores he has worked with include the apM, the apM Luxe, and especially the apM PLACE, the core members of the apM group.

apM Coin Tokenomics

Now that we know a little about apM coin's uses and history let's look into its tokenomics.

apM Coin was first listed in November 2019. It has a total supply of about 1.8 billion tokens.

The apM Coin has a token allocation as follows:

Sale – 1.66% – Initial 13-month lock-up – all the tokens unlocked at the time of writing.
Team – 10% – Tokens initially locked for 12 months – all tokens should be unlocked by the time of writing
Partner & Advisor – 10% – No lockup
Marketing – 10% – Half of the tokens in this category were initially locked for one year. All tokens should be released at the time of writing.
Payment Pool – 20% – 12-month initial lock-up followed by gradual release over the next 12 months ending in November 2021. All tokens are unlocked at the time of writing
Global Expansion – 18.34% – 6-month lock-up followed by gradual release over the next 20 years ending around 2038
User Reward – 20% – 12-month lock-up; periodic release of tokens up to 2038
Reserve – 10% – 12-month lock-up followed by a gradual release of tokens for the next 12 months.

How Is APM Created/Mined?

apM coins cannot be created or mined. As we mentioned in the vesting schedule, a proportion of the total supply is supposed to be released over the next few years up to 2038.

Therefore, there is no inflationary impact on APM price because of new coins getting minted. However, it is worth mentioning that the portion of the total supply to be released up till 2038 may have a slight deflationary effect on the apM Chain price trend.

apM Chain Competition and How It Fares

Now that we know a little about apM Coin's use-cases and history let's look at some of its rivals.

Regarding competition, apM is unique because it is a blockchain-based loyalty program in a niche fashion industry in South Korea. This makes its competitors local.

In its whitepaper, the apM Coin project presents data from five of the biggest customer loyalty programs in the country. Although the purpose of presenting these examples was to show the potential of new loyalty programs in Korea, it also gives us a point of reference to compare the apM Coin project.

Two of the prominent ones are Lotte Group & SK Group. L.POINT members account for about 70% of the entire Korean population. Its number of active members, which reaches 21 million annually and yearly points transactions reaches 450 billion. On the other hand, SK Group has more than 34.7 million members. It is Korea's largest integrated rewards service, with some 93,000 affiliated stores.

Even though the apM group is much smaller than the groups mentioned above, it is still a significant force in its own market. It receives more than 1.5 million customers annually. With over 20 years in the same market and an expanding empire, it has a very strong base.

At the time of writing, more than 40 leading wholesale brands of apM shopping malls are on board with the apM Coin project.

apM Chain Partnerships & Investors

Some of apM Chain's notable partners include the following:

Poly Network - Poly Network is a cross-chain integration platform. It has integrated over 15 blockchains, including Ethereum, Polygon, Avalanche, Fantom, BSC, NEO, etc. This partnership will allow apM to scale its NFT services currently focusing on Smart Vouchers.
Chain Link – This is one of the most prominent and widely used oracle networks in the crypto space. apM Coin's partnership with Chain Link gives apM users transparent services regarding fair prices or exchange rates for swapping apM coins for other digital assets.

apM Chain Strengths, Weaknesses, Opportunities, and Threats

Strengths

The apM Coin project's biggest strength is how well-established the apM group is. The original apM mall started out at the turn of the century giving the group a solid history in the market.

The addition of niche products like women's clothing and accessories in separate malls helped the group expand and capture a significant share of the international Dongdaemun B2B market. According to the project whitepaper, 80% of the group's visitors are foreign Asian nationals.

Weaknesses

In a way, apM Coin's biggest strength might also be its biggest limiting factor. Since it is meant to serve the needs of the apM group, it may not be able to cater to other businesses in the space. A customer rewards solution provider that was not associated with a particular group may have had a broader target market from the get-go. This would be in contrast to how the apM Coin functions.

It is still worth mentioning that the apM Coin project does plan to expand its solutions to the other businesses in the space.

Opportunities

As mentioned in its roadmap, the apM Coin project is expanding its presence in steps. If they can prove their system's utility in the apM group, they will be poised to expand their services to similar markets, starting with the Dongdaemun market itself. This could help draw in an even larger customer base for the apM group by spreading a market solution associated with their name into competitor or collaborator businesses.

Threats

The apM Coin project does not face a lot of direct competition in its niche. However, the South Korean business space is rich with customer loyalty programs. Both the Korean fashion market and Korean customer loyalty program space are forecasted to grow over the coming years.

This makes the environment conducive to competition. More holistic or niche customer reward programs by external parties or specific fashion brands could challenge the apM Coin project's growth plans of potential dominance in the market.

apM Chain Roadmap

During the latter half of 2022, the apM Coin project's roadmap includes expanding the services related to customer reward collection and redemption. This is a core aspect of the apM Coin project's offerings.

In 2023, apM has bigger plans, like expanding the platform globally by leveraging its external partnerships.

apM Chain Updates, News, and Highlights

E-Voucher Launch

apM Coin recently launched its e-Voucher service that customers and brand owners can use to get a 2% discount on their purchases.

Customers can purchase e-vouchers from the e-voucher purchasing center at the main gate of the apM Luxe. These vouchers can be used by scanning QR codes across the apM group of shopping malls.

Token Theft

The apM Coin project had a bit of a hiccup when it launched on the Bithumb exchange back in 2020. During the listing process, in August, almost 3% of the coin's supply was swindled away by a fraudster.

The perpetrator obtained these coins in the name of expenses for the listing process. They then dumped or sold all of these coins, making the APM price dip starting around 25 Oct. After the facts in the case were confirmed, apM Chain recovered all of the stolen coins by purchasing them back from the exchange. This helped the apM Chain price stabilize.

apM tracked down the perpetrator and have been engaged in legal actions against them since then. They recently released an update on the case notifying the community that the case is still ongoing. apM Chain will make an announcement about what they plan to do with the recovered coins once the final verdict on the case is announced.

Do Customer Reward Programs Like the apM Coin Need Blockchain Technology?

The apM Coin is not the first customer rewards program in South Korea. Fashion brands can have customer loyalty programs without using blockchain technology. So, why make the apM Coin a blockchain token?

In its whitepaper, the apM Chain platform mentions a few reasons why it went down the blockchain road. One of the reasons was that customer reward points are a kind of digital currency, even though people may not think of it as such. And currencies should not be under centralized control.

But even with the apM Chain, the whole system is not decentralized. apM Cash, for example, the other main currency in the apM chain, is under the direct control of the apM Chain.

The biggest loyalty programs in the world, including South Korea, are not blockchain-based, even though the technology has been around for some time now. Lotte is a good example of this. This shows that loyalty programs do not need the technology.

apM's use cases are a bit niche and somewhat centralized on the apM group for blockchain technology to be necessary.

That being said, using blockchain technology does not hinder the apM Coin project. If anything, it may add to its potential success because of the hype cryptocurrencies enjoy in countries like South Korea.

Where To Buy APM?

You can buy APM at OKX, one of the biggest cryptocurrency exchanges in the world. apM Coin got listed on OKX in February 2020, a few months after its first exchange listing on Bittrex Global.

You can buy APM at OKX using spot trading. The trading pair option available at the moment is APM/USDT. Here is how you would buy APM at OKX.

Buy USDT using a Visa, Mastercard, Apple, or Google pay funds transfer.

Skip this step in case you already have USDT. You can connect your wallet to OKX here.

Open the spot trading option on OKX and:

Ensure that the APM/USDT trading pair is selected.
In the 'Manual Trading' tab on the left side, specify the number of APM you'd like to buy.
You should see the price in USDT you have to pay in the tab. Click 'Buy' to confirm the transaction.

How To Store APM?

The most convenient way to store your apM coins is right here, at OKX. We offer both online or hot wallet and offline or cold wallet solutions.

Our online wallets protect your funds by using semi-offline multi-sig authentication. This prevents your private keys from being exposed anytime you want to make a quick withdrawal.

You can also opt for our cold wallet solutions for extra security features, including:

Financial-grade Advanced Encryption Standard
No contact with external memory devices like USBs
Access to the cold wallets only through at least two authorized personnel

FAQs

Is apM Coin a Normal Cryptocurrency?

The apM Coin is not a typical cryptocurrency. This is in the sense that normal or popular cryptocurrencies serve the overall economy of an underlying blockchain. Examples of this include ETH, TRX, NEO and so on.

The apM Coin, on the other hand, serves the customer loyalty reward needs of a group of shopping malls, the apM group.

What Is apM Cash, and What Is It Used?

In the project's whitepaper, the apM Chain platform introduces the second token in their tokenomics as apM Cash. At the time of writing, it looks like apM Cash is akin to the project's a.point reward tokens since there is no mention of apM cash separately in the project's list of smart assets.

Is APM Useful Outside of the apM Group Malls?

At the time of writing, the apM Coin is not useful outside of the apM shopping malls. However, the project's roadmap includes global expansion in 2023, which may expand the coin's use outside the legacy malls.

Can I Stake APM?

At the moment, you can not stake APM. The chances of this function being available in the future are slim as well. This is because the apM Coin project is not a coin with on-chain use cases for the apM blockchain network, which is itself based on Ethereum.