FLR Dropped for XRP Holders after 2 Years: Price Still Plummeted

Flare airdropped FLR tokens for all XRP holders with a minimum of 1 XRP.
4.28 billion tokens were distributed on a 1:1 basis, one FLR for 1 XRP.
15% of the total supply was airdropped, and the rest will be managed in three years.

Airdropping is not a new concept, and companies have been doing this for a very long time for various reasons. Flare’s FLR tokens were distributed after a two-year wait. This incident created a buzz in the community, but the recipients dropped the token as soon as they got them.

The Flare token distribution represents the first 15% of the full public token distribution, with the remainder to be distributed on a monthly basis over 36 months. The method of allocation of the remaining 85% of token supply depends on the outcome of a community vote on…
— Rocketfella DeMoon (@peoplesPETxrpl) January 11, 2023

XRP holders holding a minimum of 1 token as per December 2020 snapshot, received 4.28 billion-plus FLR tokens. They followed a 1:1 basis for distribution meaning one FLR for one XRP held.

Fifteen percent of FLR’s total supply was airdropped; the remainder shall be distributed sequentially in the next three years.

This gives an additional advantage to the FLR holders, allowing them to vote on the methodology for future distribution on Flare’s governance forums and propose required changes in the project.

Initially priced at 5 cents, during the low liquidity on the MEXC Global exchange, it tripled up to 15 cents. While exchanges such as Kraken and OKX joined in as liquidity increased. Price later slumped to 2 cents, and it managed a $34 million trading volume as of 10:30 UTC on Tuesday.

Flare was initially to become a Decentralized Finance (DeFi) application that would use XRP tokens but gradually developed into a layer 1 blockchain and oracle provider. Layer 1 refers to a base blockchain like Solana or Ethereum, and oracles are nothing but third-party services moving data inside the blockchain from the outside.

Despite being a relatively newer token, Flare network already managed to function properly and handled 269 million plus requests for data and transactions last week.

In cryptocurrency, airdropping is a marketing stunt in which certain coins or tokens are sent to wallet addresses, either free or in return for a favor like retweeting. The basic goal is creating awareness and increasing ownership of the newer virtual currency.

Although this is a genuine effort from crypto companies to promote their business, some malicious actors use these freebies to lure and prey on novice users. Anything free attracts attention, and they use this to steal or hack their wallets for their good.

Currently trading at $0.0438 with a jump of 9.70%, while its price against Bitcoin was at 0.000002405 BTC with a rise of 5.10%. Its market cap remained unchanged at $524 million, while its volume jumped by 48.64% at $101 million in the last 24 hours. FLR is ranked at 2589.

The current trading point is 45.12% down from its all-time high of $0.0797 achieved on January 10, 2023; at the same time, it is 92.68% up from its all-time low of $0.0227 touched on January 10, 2023.