Incoming Airdrop: Spark
The Upcoming Spark Airdrop: Everything Investors Need To Know
Flare network developers recently announced plans to roll out their network on the XRP ecosystem, and it will feature smart contract integration. The crypto community is excited because the launch will allow the Flare network to become the first Turing-complete network. It will also align with the Federated Byzantine Agreement network while offering integration with the Ethereum virtual machine.
News of the new network might be exciting for the crypto community but not so much for anyone looking for immediate money-making opportunities. However, XRP holders will be happy to know that they will receive free tokens through the airdrop courtesy of the new Flare network. The Spark network will have a native token called the Spark token, which will exclusively be freely provided to XRP holders.
How will the Spark token airdrop take place?
The Spark token will be distributed through an airdrop, which means it will be available to individuals that meet the criteria. The only qualification that investors need to acquire the token is a crypto account with XRP tokens.
Global crypto exchange platform Coinbase recently announced that the airdrop would take place on December 12. Anyone who has a cryptocurrency account that contains XRP on Coinbase will thus benefit from the airdrop. The digital coin will be distributed at a 1:1 ratio, which means that crypto holders will receive Spark tokens equal to the number of XRP tokens that they hold in their accounts.
Coinbase also revealed via Twitter that they plan to rollout the Spark token after launching the Flare network. Roughly 45 billion Spark tokens will be freely distributed through the airdrop. Numerous other crypto exchanges such as Bitstamp, Bithumb, and Binance also confirmed that they would be involved in the airdrop. Flare will feature a total of 100 billion spark tokens. The network will retain more than half of the entire supply as a reserve, distributed gradually in the future.
The token was generated through a fork on the primary XRP ledger, thus linking the two digital coins. The fork will facilitate the flare network's creation ad it will give the XRP ledger similar features to those of the Ethereum network. It is the first utility fork in the XRP ledge's history, and it will boost utility through efficient smart contracts.
The Spark token airdrop announcement is a big deal for crypto enthusiasts and investors
The cryptocurrency market has so far demonstrated that prices are governed by market buying and selling forces. Prices tend to increase the more a cryptocurrency is bought, and they decrease the more a cryptocurrency selloff takes place. The same principle led to the massive crypto rally in 2017 and the latest one in 2020. For example, the demand for digital currencies increased this year as investors sought alternative investment options outside the traditional finance scope.
XRP experienced a notable rally in November, right after the Flare network and the Spark token airdrop announcement. The explanation for that rally is directly linked to the airdrop. An airdrop technically means you receive free tokens with value, but the catch these days is that you have to own another linked token or digital currency to benefit from the airdrop. Many people rushed to purchase XRP in November so that they could receive the upcoming digital coin.
The increase in XRP purchases jacked up its price, and it also helps that the crypto market was already in a strong bull run. The news about the airdrop was thus a speculative investor's dream because it presented a chance to own a new token and a chance to ride XRP bulls. It is a chance to make money through the rally and participate in an exclusive event that will allow a few select individuals to receive a new and scarce token.
Can the Spark token earn dividends?
Many special-use networks have their own tokens, which allow holders to earn when the token is used or gain value while facilitating transactions. The Flare network will use its native token to collateralize transactions. Flare network will run applications that traditionally operate on the Ethereum network. The native token will also facilitate spam protection and network governance while also generating essential data. There is no official confirmation whether the token will earn dividends, but its special use cases allow it to generate value.
How to receive the Spark token
You might have to do some things to ensure you receive the Spark tokens in your wallet once the airdrop takes place. For example, the first step is making sure that you have the right type of crypto account or wallet. For example, you can leverage an XRP toolkit that will let you use a message key for your flare address.
You will likely receive the Spark token without having to do much if you have a self-custody service. If you use custodial services, you might need a message key that will represent a flare address that will help you claim your share of the tokens during the airdrop. The message key will allow the flare network to know where to send the token. Note that the key will be publicly visible on the XRP ledger, and this might cause some unwanted security exposure.
The Flare network's address format is similar to that of the Ethereum network, which means you can use an Ethereum wallet to generate a message key that will allow you to claim the token. It also means the Spark token will be sent into the same wallet that will generate the message key.
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