XRP Crashed 8% a few moments after the Flare Network airdrop happened as the network worked out which addresses that will get free Spark tokens as we are reading more in today’s Ripple news.
The price of XRP which is the third-largest cryptocurrency by market cap crashed moments after the Flare Network airdrop that was supposed to credit all XRP holders that hold funds in exchanges and wallets with free crypto. While all of the top coins by market cap increased like BTC that increased 3.2% over the past day, ETH by 2%, LTC by 4.4%, XRP Crashed 8% over the past 24hours with a current price of $0.5.
At midnight, Flare Network which is a yet-unreleased blockchain that will help smart contracts deal with XRP in a trustless manner took one snapshot of the Ripple blockchain and got a picture of the addresses that held XRP in the participating exchanges like Binance and Coinbase or other eligible wallets like Ledger and Ballet. In the upcoming months, Flare Network will distribute free Spark tokens for all eligible XRP holders and the tokens could be worthless once the Flare Network launches next year.
This could have been the case in which some people held onto the coins in order to benefit the airdrop and then sold once the flare network took its snapshot. The number of whales hit an all-time high in the previous weeks that led to the airdrop. A dump could be the reason that the price of XRP dropped.
As previously reported, Flare Network is a ripple-based blockchain that announced an airdrop on November 13 with the Spark Airdrop Program for all XRP holders that should take place on December 12. Anyone that holds XRP coins will receive free spark tokens with a 1:1 ratio. Airdrops are similar to giveaways as they work in a way for developers to create a buzz around certain crypto projects. Wallets and crypto exchanges need to support the airdrop for their customers in order to receive free tokens. If a wallet or exchange doesn’t support it, anyone that holds XRP will not receive any free spark tokens. Flare network wanted all bigger crypto exchanges to support the airdrop but they said that coinbase didn’t engage with Flare Network at all. Flare tweeted a warning to Coinbase users that they will likely miss out on the airdrop given the little time left for the exchange to prepare for it.
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