Flare token dumps 10% after Ripple CTO advises to sell Flare token dumps 10% after Ripple CTO advises to sell
Following David Schwartz tweet, the FLR token dumped by roughly 10% to $0.04367 as of press time.
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Updated: Jan. 12, 2023 at 1:30 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Ripple CTO David Schwartz advised the XRP community on Jan. 12 to sell their airdropped Flare (FLR) tokens because holding the asset has no added incentive.
Following the tweet, the FLR token dumped roughly 10% to $0.04367 as of press time.
Ripple CTO says Flare leveraged the XRP community
Schwartz said Flare leveraged the XRP community to grow and drastically weakened its promises when it didn’t need them again.
He noted that this does not make the project bad or its developers dishonest because XRP did not keep “some” of the promises it made in its early days.
However, the Ripple CTO found Flare’s rules for subsequent airdrops strange. He explained that sellers could get 100% of their value if they sold their holdings, while buyers could wrap the tokens and get the airdrops.
According to Schwarz, it indicates that Flare does not want to keep its commitment and instead wants to give only 15% of what it promised.
Flare CEO responds
Flare CEO Hugo Philion responded to Schwartz’s concern pointing out that the decision’s motive was to place new entrants in the ecosystem on equal footing.
Philion highlighted an improvement proposal was “designed to preserve existing airdrop recipients’ foundational place in the ecosystem and put those coming fresh to the ecosystem on equal footing.”
Philion added:
“[This] is a must going forward if Flare is to have a chance to reach it’s potential.”
FLR declines 10%
The Flare token has been on a negative price performance since its airdrop on Jan. 9. Flare fell by 10% to $0.04367 over the last 24 hours.
CryptoSlate reported that the airdrops led to its value dropping by around 83%.
Meanwhile, despite its poor price performance, crypto exchanges like Crypto.com have listed the token. Some of its community members have also expressed support for the network’s technology.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Flare
$0.03207
Flare is an EVM-based Layer 1 blockchain designed to allow developers to build applications that are interoperable with blockchains and the internet.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
Crypto.com
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity.
David Schwartz holds the pivotal role of Chief Technology Officer at Ripple, where he has been instrumental in shaping the technological framework of the company.
