Ripple CTO Advises Selling Flare (FLR) Tokens, Raises Serious Allegations
12 January 2023 - 8:00PM
NEWSBTC
Ripple CTO David Schwartz voiced harsh criticism against the Flare
Network in a series of tweets today. After more than two years
following the snapshot for XRP holders, the project finally
conducted its airdrop for the FLR token on Monday, January 9. As
NewsBTC reported, 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. Ripple CTO Raises
Harsh Allegations Against Flare Team Via Twitter, Ripple’s chief
technology officer wrote 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. Related Reading: XRP Price
Prediction: Bulls Could Aim $0.4 or Higher In general, Schwartz
considers the distribution of the airdrop “a very strange
decision.” For a long time, the project advertised that XRP holders
would receive the full amount of FLR tokens right away. However,
the team did not keep its promise. They declared that with the
first airdrop, only 15% of the total amount of 1.0073 FLR will be
distributed for each XRP. The remaining 85% of FLR tokens will be
airdropped in 36 monthly installments, with the method of
distribution still dependent on a community vote. Related Reading:
Ripple (XRP) Related Flare Network Token Airdrop: FLR dumps by 71%
Schwartz sees this as a breach of their commitment. “I want to be
wrong, but I don’t see how,” the Ripple CTO said, following up with
another serious allegation: I feel bad saying this. I love the
project and want the best for it and want to believe the best about
it. But my honest opinion is that they leveraged the XRP community
to grow and weakened their promises drastically when they felt they
didn’t need it anymore. While Schwartz qualified his statement in
the following tweet when he wrote that this doesn’t mean they are
“dishonest or that their project is bad,” he also said that XRP has
evolved while the Flare Network team “failed to deliver on some
promises” from the early days. You can love Flare and love XRP too.
It’s not one or the other. But I don’t have happy fuzzy feelings
about how it went down. Schwartz Advises To Sell The FLR Token
(Later) In response to a user’s follow-up question about whether it
is now the best time to “take profits,” Schwartz replied: I’m not
saying people should sell. I’m just saying that they are acting
irrationally if they don’t sell because they want the value of the
remaining 85% of the airdrop. That’s just not rational. Another
user countered the argument by saying that FLR is already
“worthless” after the massive crash, so owners of the token should
rather wait. The Ripple CTO agreed, citing that “now is probably
the worst time to sell. It would be kind of silly not to wait that
out.” Featured image from Forbes, Chart from TradingView.com
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