In the past week, Flare Network, the company that is set to issue all XRP holders with an equivalent amount of coins in the Spark Token Airdrop. Flare said that Coinbase might be too late to let its clients participate in its airdrop.
@coinbase has barely engaged with #Flare. They hold about 3 Bn of YOUR #XRP. It is likely too late for them to do the work to support the Spark $FLR distribution at this point.
— Flare (@FlareNetworks) November 28, 2020
Coinbase stated on December 5 that it plans to support a forthcoming airdrop which was considered to be the fundamental factor supporting XRP’s surge in recent weeks. The San Francisco-based crypto exchange said in a blog post that its clients who have XRP balances by midnight UTC on Dec. 12, 2020, will get Spark tokens at a later date from the exchange.
Coinbase will support @FlareNetworks’ Spark airdrop. Customers in approved jurisdictions who hold XRP in their accounts on the snapshot date of Dec. 12 will qualify to receive Spark tokens. We plan to distribute the airdrop after the Flare network launch. https://t.co/jEYKH1n4XB
— Coinbase (@coinbase) December 6, 2020
Their statement read:
“If you are an eligible customer holding an XRP balance on Coinbase or Coinbase Pro on the snapshot date and time of December 12, 2020, 00:00 AM UTC, you’ll receive Spark tokens from Coinbase at a later date after the Flare network launch. The amount of Spark you’ll receive depends on how much XRP you had in your account at the snapshot time.”
The Spark Token Airdrop
Details about the Spark Token Airdrop will get posted later this week. Sends and receives options will get disabled before the snapshot time and resume moments after the snapshot completes. Spark is the local token powered by the Flare Network. This network is a system that is designed to introduce Ethereum-like functionality to the XRP Ledger. The developer team that is behind the creation of the smart-contract project wrote in August:
“Flare’s token, Spark is created through what may be the first-ever utility fork whereby the origin network, in this case, the XRP Ledger, benefits through increased utility.”
XRP is almost 0.2% down over the past 24 hours at the time of writing. Coinbase spokesperson Crystal Yang commented:
“Supporting new networks and their projects is important for not only meeting customer interest, but also the continued growth of the crypto ecosystem.”
Regulators
Everything is set out apart for one last hurdle that may scatter chances for the investors to get this airdrop: regulators. Coinbase is beheld to the US regulators. The regulators’ dictums determine which coins Coinbase can and cannot list.
Therefore, even if the Coinbase exchange supports the airdrop, some of the users may not be eligible to get the coins from the airdrop. The exchange stated:
“Our decision to support any asset requires significant technical and compliance review and may be subject to regulatory approval in some jurisdictions. We, therefore, cannot guarantee when or if Spark will be available for distribution in any specific jurisdiction at this time.”
Coinbase does not say which jurisdictions will support the Spark Token Airdrop. The other exchanges that will support this airdrop include Bitfinex, Poloniex, Bithumb, Binance, Kraken, Huobi, OKEx, eToro, and Bittrex.
For now, there is no guarantee that the Spark tokens will amount to anything in the future.
XRP Price Analysis
On December 7, XRP rebounded from $0.543 and surged above the downtrend line. That is a positive indication which suggests that the correction in this market might be over. Nonetheless, it does not mean that a new uptrend will start instantly.
The bears might not surrender easily and they are most likely to slow the upside move around $0.6794. in the scenario that they succeed to do that, the XRP/USD pair may remain with a range between $0.6794 and $0.543 for several days.
The next significant directional move might start after the price breaks below or above this range. If the bulls manage to push the price sustainably above $0.6794, a retest of $0.780574 will come into the picture.
On the other hand, if the XRP price turns down and drops below $0.543, selling might intensify and drag the price downwards to $0.4365. For now, many analysts believe that the Spark Token Airdrop will push the price of XRP towards $1.00.