• Ripple CTO David Schwartz voiced harsh criticism against the Flare Network in a series of tweets.
• FLR token experienced a massive dump of more than 71% on Bitrue in the run-up to the airdrop, where the token could already be traded as IOU.
• Schwartz considers the distribution of the airdrop „a very strange decision.“
The Flare Network, a blockchain project that focuses on providing interoperability between different blockchains, has been the center of attention for the past few weeks, as the project finally conducted its airdrop for the FLR token on Monday, January 9. However, Ripple CTO David Schwartz was not impressed, and voiced harsh criticism against the Flare Network in a series of tweets.
The airdrop was much anticipated by XRP holders, as it was more than two years following the snapshot for XRP holders. The FLR token already experienced a massive dump of more than 71% on Bitrue in the run-up to the airdrop, where the token could already be traded as IOU. After that, things didn’t get much better and FLR dropped even further, totaling a loss of 93% since Sunday, January 8. At press time, FLR was trading at $0.0437. Thus, the FLR price is in no man’s land. The IOU on the token debuted back in January 2021 at Bitrue and started at a price of $0.0831. After that, the FLR token went up to $2.2472. At no point did FLR trade below its January 2021 debut price.
David Schwartz took to Twitter to express his views on the airdrop. He stated that the current rules for holding Flare for subsequent airdrops provide absolutely no incentive not to sell Flare now. „You lose *nothing* if you sell now,“ Schwartz said. He added that while it’s true that XRP holders miss out on subsequent airdrops, you don’t lose them. As the Ripple CTO explained, you can get 100% of their value if you sell your Flare, as the buyer can wrap the token and get the airdrops. In general, Schwartz considers the distribution of the airdrop „a very strange decision.“ For a long time, the project had been promising that the token would be distributed in a way that would incentivize holding, but the airdrop has gone against that promise.
Overall, the airdrop turned out to be a major disappointment for many XRP holders who were expecting to benefit from the distribution. Flare Network is yet to comment on the criticism, but the future of the project looks uncertain. It remains to be seen if the project will be able to make a comeback and turn this situation around.