The Flare Network will be beginning its foray into the blockchain space off the back of Ripple’s XRP when it airdrops Spark tokens to all XRP holders on December 12th. This new token and blockchain have not got a lot to do with Ripple or their vision for XRP, but it could have a profound impact on the XRP token. 

Flare is a distributed network with some unique properties. It can be used to create two-way bridges between networks, such as Ethereum and the XRP Ledger. This means that it allows the XRP token to be used with smart contracts.

Spark Token is the native token of Flare. A portion of the supply is to be airdropped to XRP holders and many holders are preparing for the free currency. 

Over the last month, there has been a big surge in XRP’s price. It rose from $0.30 to a peak of $0.73 in just a few days. 

XRP surge

The surge was likely led by investors buying the token, hoping to be included in tomorrow’s airdrop. But after the snapshot happens, and the investors know that they will be included—what will happen to XRP’s price?

“In our view, it’s quite likely that XRP’s recent price surge was at least partly fuelled by the airdrop on the 12th December. This has probably been factored in at this stage, and it’s entirely possible that some holders may be tempted to offload after this date to lock in profits. If so, this may lead to a decline in dollar value, at least in the short term,” Quantum Economics analyst Jason Deane told Decrypt.

The Flare Network has said it chose to airdrop its new token to XRP holders in order to maintain its value.

“A fork traditionally has sought to take the user base of an existing network and depart entirely from that network, usually to have an antagonistic relationship with the original chain. In contrast, a utility fork is intended to bring value back to the original chain instead of moving away from it,” Flare Network said.

Whales in the water

According to Santiment, the number of XRP whales, that is users holding 10 million ($5.67 million) tokens or more, surged sharply ahead of the Spark airdrop, reaching a new all-time high of 339 addresses.

Last week, XRP saw an increase of 1,000% in its trading volume on social exchange eToro ahead of the airdrop. In recent days, the hype has been fueled even further after major exchanges, including Coinbase, Kraken, Binance, Bitfinex, Bithumb, Bittrex, eToro, Huobi, OKEx, and Poloniex, announced their support for the Spark airdrop.

Source: thedailychain.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here