Leading cryptocurrency exchange Coinbase has expressed interest in supporting the upcoming Spark Token airdrop to XRP users. The airdrop is a significant event for the XRP community as it is expected to help boost the price of XRP.
The Flare Network is a blockchain network that is based on the Flare Consensus Protocol. The Spark Token is the native token used on the network and was created through a system that is intended to bring smart contract capabilities to the XRP Ledger that resembles that of Ethereum. This will increase its utility and possibly influence the price positively as smart contracts are becoming more widely used.
Ripple CEO Brad Garlinghouse had in an interview with CNN spoken about the upcoming airdrop and its potential to boost XRP’s price by increasing utility on the ledger. Apparently, XRP holders are excited about the coming airdrop and so is Garlinghouse. He explains the reason behind such excitement.
“I think XRP holders are deservedly excited about what Flare is doing. I’m excited about what Flare is doing. As we’ve said, any time you’re seeing real utility solving a real problem – and I think Flare has carved out an interesting niche and as they move forward with this airdrop of Spark tokens I’m optimistic for them.” “I’ve met the management team there. I think they’re very talented and I think they have a clear vision of the problem they’re going to solve.”
Garlinghouse has always been of the opinion that utility is the most important factor that drives adoption and projects that solve real problems will succeed while redundant ones will fizzle out.
Although Ripple boasts of providing remittance services to hundreds of financial institutions globally with XRP as the source of liquidity, this has not shown any positive effects on the price of the third-largest cryptocurrency. However, the coming airdrop is expected to turn things around for XRP.
According to Coinbase announcement, XRP holders will be airdropped Spark Tokens on a 1:1 ratio depending on how much XRP they have during the snapshot on 12 December. the distribution will commence when the Flare Network goes live in 2021.