Crypto

Flare: Airdrop Went Wrong, What to Expect Next?

The long-awaited airdrop for XRP holders has not been as successful as expected, and the consequences could be disastrous.

FLARE when an airdrop weakens a project

Airdrops are a frequent occurrence in the cryptosphere. However, one day this can lead to the loss of the strongest chips. In this sense, FLR is one of the most illustrative examples.

For two years, XRP holders have been waiting for the payout of several Flare coins issued by the blockchain provider of the same name. The initial giveaway, which was announced in December 2020, served to raise awareness of a project that aims to integrate smart contracts with Ripple. Thanks to him, each interested party received the right to touch one FLARE for every XRP held.

Now the deed is done: after consulting with their community, the Flare team has distributed 15% of their public reserve, or 4.279 billion coins. At the same time, the project opened its blockchain to users.

Source: Flare Twitter account.

However, the members’ anticipation seems to have turned into greed. Barely touching the first coins, the latter went to liquidate their tokens on crypto platforms, which led to a sharp drop in the price of Flare. At the time of this writing, the coin has already lost 50% of its value.

Source: FLR price according to CoinMarketCap.

The beginning of the end of a project?

Although the price of the asset seems to be stabilizing, the setbacks may not end there. After all, the remaining reserves will be distributed regularly over the next three years. Enough to give the token time to recover…but also give it a chance to crash.

Indeed, the liquidation can be explained by the fragility of Ripple, mired in legal failures and doomed to collapse, according to some members of the community. As the situation drags on, future SEC victories could condemn the project… and with it the FLR.

Thus, depending on the following events, the distributed tokens could be immediately resold, fearing a catastrophe.

Moral of the story: At this point, the sun is still far away from crypto, so the price of FLR seems highly predictable.

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