The much-hyped Flare airdrop has come and gone. Similar to most airdrops, the token price has been pumped and dumped.
On Jan. 10, Flare Networks began airdropping FLR tokens to XRP holders. Those eligible needed to have held the Ripple coin for a snapshot that took place in December 2020.
Participating exchanges distributed FLR tokens to customers, but the rewards were lower than expected.
Furthermore, the token hit a peak price of $0.15 on the day of the airdrop. Today, just a week later, it has dumped 71.5% to trade at $0.042 at the time of writing.
12 billion tokens are currently circulating out of a total supply of 100 billion. Additionally, FLR is still being distributed monthly, over 36 months, for those that wrap or delegate their tokens for protocol governance purposes.
Flare Distribution Rewards Not Up to Snuff
Aside from complaints that exchanges such as Coinbase and Bitstamp are not releasing the tokens, the rewards have also been questioned.
Some crypto YouTubers have already labeled Flare a Ponzi scheme. Others have commented on the very low rewards and deadlines to wrap the token.
On Jan. 17, the Flare Community Twitter account clarified the low rewards and gave a brief explanation. Furthermore, it stated that we are currently at the very start of a 3.5-day-long epoch and rewards accrue throughout the period.
Rewards will increase as the epoch progresses but will be set to zero when it ends. It was also clarified that only delegation rewards are being distributed now. Additionally, there will be no further airdrops until the distribution method is voted upon in FIP-01.
In response to a post by Flare co-founder and CEO Hugo Philion, one participant echoed complaints about the 15% airdrop and the rest being drip fed.
Nobody will get more than 35% to 45% rewards by delegating the 15% FLR airdrop in three years, they said, adding:
“With FIP.01, screenshot time XRP holders getting cheated by Hugo Philion. They offered XRP to FLARE 1:1 ratio airdrop, while they distributed 1:0.15 ratio.”
Dumping on Investors?
Additionally, FTSOs (Flare Time Series Oracles) will get “billions of Flare for fees and dump on investors,” they added.
“Flare entities will also dump Billions of $FLR along with each reward cycle.”
Flare is a smart contract platform for the Ripple XRP ecosystem. Just a week after it airdropped FLR tokens, it seems that network participants are already getting riled.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/low-flare-airdrop-rewards-cause-commotion-flr-price-dumps-72-week/