The Flare project will hold a distribution of its tokens to XRP coin holders. This action was supported by many large trading floors. We will tell you why today is the last day, when you can take part in the promotion, and what nuances you need to consider
Tomorrow, December 12, a distribution (airdrop) of a new cryptocurrency will take place. Users will be able to receive free SPARK (FLR) tokens issued by the Flare Network project. He develops solutions to bring decentralized finance to the XRP ecosystem by adding support for smart contracts.
To participate in the promotion, you need to hold XRP coins issued by blockchain startup Ripple. Their holders will receive new FLR tokens in a one-to-one ratio to XRP. To do this, tomorrow, at 03:00 Moscow time, a snapshot of user balances will be made. If you buy XRP after this point, they will not count towards the airdrop.
This distribution of cryptocurrency was supported by many exchanges. These include Binance, Coinbase, OKEx, Kraken, KuCoin, Bitfinex, the full list can be found on the project's official website . Users of these platforms just need to keep XRP tokens in their balance to participate in the airdrop. However, each site may have its own restrictions regarding the trading of the XRP altcoin, its input and output, and other functions.
The project announced the airdrop in August. Since then, the XRP token has shown significant growth in value. During this period, the price of the coin increased by 90%, to $ 0.55, at the moment rising above $ 0.90. In this regard, there is a double risk of incurring losses from participation in the FLR distribution.
First, users who hold XRP but are not interested in the airdrop can start selling coins to lock in profits. Secondly, participants in the FLR distribution can also start getting rid of XRP as soon as a snapshot of balances is taken. Due to both factors, the XRP price could plummet after the stock ends.
At the same time, it is not known whether it will be possible to compensate for the losses by selling the received FLR tokens. At the moment, it is not known how much the new cryptocurrency will cost and whether it will be in demand in the future.
Airdrop participants can hedge the risks of participation in it by using short positions. If the XRP holder goes short on XRP, then in the event of a drop in the price of the coin after the distribution, the losses will be offset by the profit gained from the short position.
In August , the MEME DeFi token was airdropped and handed out for free. Within a month after that, the coin's price climbed to $ 1800. However, by the current moment the asset has dropped in price to $ 150.