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Flare Networks’ Spark token airdrop boosted the value of XRP. Now it’s time for the Litecoin to take advantage of this free token allocation.
Flare Networks’ goal is to bring interoperability between blockchains to enable them to participate in decentralized finance. Prior to the launch of its mainnet, Flare is therefore making airdrops.
The first distribution of free Spark tokens was to XRP holders. This airdrop also contributed to raising the price of the token. However, this increase is now only a distant memory due to the SEC’s complaint against Ripple.
Interoperability with DeFi for Litecoin
However, this misadventure does not concern Litecoin token holders. And they will be the next to benefit from a Flare Networks airdrop. In fact, the price of LTC is already on the rise.
Flare Networks is therefore also interested in the world’s 5th largest cryptocurrency in terms of capitalization. Its objective is to enable LTC “to be used without trust on intelligent Flare contracts with Ethereum. ยป
The operators of the future blockchain thus promise to offer “interoperability and composability” to Litecoin. But the immediate priority for holders of the crypto-active tokens is to benefit from free Spark Tokens (FLR).
45 billion Spark for XRP holders
But how many chips can they expect? Details will be announced this week. For XRP, more than 45 billion Spark will be allocated to eligible holders. The ratio is 1.0073 Spark for XRP.
However, the value of LTC is much higher than that of XRP, at over $140 for Litecoin compared to about $0.30 for the Ripple token. The ratio should therefore a priori be quite different. “The Flare Foundation’s token allocation will be reduced so that FLR 5 billion can be distributed to LTC participants,” says the issuer.
Airdrop, however, does not necessarily mean profit in the long run for the beneficiaries. “There is no guarantee that these tokens will have any value when Flare is finally launched,” Decrypt rightly points out.
This will depend in particular on the adoption of the blockchain and its weight in the DeFi. There is no shortage of competition in this market. The congestion of Ethereum, an essential blockchain in this market, is a source of great ambition, especially for Solana.