Coinbase Completes Flare (FLR) Token Airdrop Distribution to Eligible Users

On April 16th, Coinbase Asset announced on social media that Coinbase has completed the airdrop distribution of Flare (FLR) tokens, with over 601 million Flare (FLR) tokens distributed to eligible users. This airdrop is based on the XRP balance held by Coinbase users on December 12, 2020 (including Coinbase Exchange and Coinbase Pro accounts). Currently, XRP transactions are still suspended on the Coinbase platform. Coinbase Chief Legal Officer Paul Grewal previously stated that Ripple can only relist on the platform after obtaining regulatory clarity after a lawsuit ruling with the US Securities and Exchange Commission.

Coinbase: Flare (FLR) airdrop distribution completed

Coinbase Asset announced on social media that it has successfully completed the airdrop distribution of Flare (FLR) tokens to eligible users on April 16th. Over 601 million FLR tokens were distributed to users who held XRP on Coinbase on December 12, 2020, including Coinbase Exchange and Coinbase Pro accounts.

What is Flare (FLR)?

Flare Network is a smart contract platform that aims to bring additional functionalities to digital assets, such as XRP. Flare’s native token is FLR, which is used to pay transaction fees and reward participants who provide network services. FLR tokens can also be used to secure loans, as collateral for stablecoins, and for governance purposes on the network.

Why a Flare (FLR) Token Airdrop?

The Flare Network decided to distribute FLR tokens through an airdrop to eligible XRP holders as a way to bootstrap the network’s decentralization and distribution. By distributing FLR tokens, the Flare Network incentivizes XRP holders to participate in the new platform’s governance and operations.
The Flare Network chose XRP holders as the primary beneficiaries of the distribution since it collaborates with Ripple to bring smart contract capabilities to the XRP ecosystem. The Flare Network’s goal is to introduce new use cases to the XRP ledger and create new business opportunities for its users.

XRP Trading Suspension on Coinbase

Coinbase suspended XRP trading in December 2020 after the SEC filed a lawsuit against Ripple Labs, alleging that XRP was an unregistered security. Coinbase’s Chief Legal Officer, Paul Grewal, previously stated that the suspension would remain in place until Ripple succeeds in obtaining regulatory clarity following the lawsuit ruling with the US Securities and Exchange Commission (SEC).
The Flare (FLR) token airdrop distribution did not affect the XRP suspension on Coinbase, and XRP trading, deposits, and withdrawals remain halted on the platform. Coinbase has been monitoring the legal proceedings between Ripple and the SEC and expects to offer XRP trading again once regulatory clarity is obtained.

Potential Impact of the FLR Airdrop

The FLR token airdrop could potentially influence the Flare Network’s adoption and value in the short and long term. For eligible users who received FLR tokens, ecosystem participation becomes more attractive since they have a stake, voting power, and rewards on the network.
Moreover, XRP holders who previously did not hold FLR tokens can now join the network and participate in various use cases provided by Flare. The airdrop encourages new users to join the network, and with more participants, the network’s resilience and security increase.
The Flare Network also includes an Ethereum Virtual Machine (EVM) compatible primitive that allows Ethereum smart contract developers to use their existing contracts on Flare. The feature has attracted the attention of the DeFi community, which could potentially increase the number of decentralized protocols and applications built on the Flare Network.

Conclusion

Coinbase’s completion of the Flare (FLR) token airdrop distribution demonstrates the company’s commitment to providing value to its users and embracing digital asset innovation. The airdrop incentivizes eligible XRP holders to participate in the Flare Network’s governance and operations, offering new use cases, and creating new business opportunities.
While XRP trading remains suspended on Coinbase, the Flare Network’s success could drive increased adoption and potentially influence the value of XRP, making the distribution a crucial inflection point in the development of both projects.

FAQs

1. How do I know if I received FLR tokens from the airdrop?
You can check your Coinbase account’s recent activity to confirm if you received FLR tokens. Eligible users who did not receive FLR tokens should contact Coinbase support for assistance.
2. When will XRP trading resume on Coinbase?
Coinbase has not provided a specific timeline for the resumption of XRP trading. The company is closely following the legal proceedings and expects to offer XRP trading once regulatory clarity is obtained.
3. Can I buy FLR tokens on Coinbase?
At the time of writing, FLR trading is not available on Coinbase. However, as the Flare Network’s adoption grows, Coinbase may offer FLR trading in the future.
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