Binance will support Flare Networks airdrop for Ripple (XRP) hodlers, and it could pave the way for other leading cryptocurrencies to make the same move
Binance, one of the top digital currency exchanges globally, has confirmed its support for XRP’s Flare Networks airdrop. The crypto exchange announced this yesterday, stating that “The airdrop snapshot will take place at the first validated XRP ledger index number with a timestamp greater than or equal to 2020/12/12 00:00 AM (UTC)”.
XRP deposits and withdrawals on Binance will be suspended a day before the airdrop. Binance will proceed to take a snapshot of all XRP tokens held by traders and investors on the platform. Users can deposit and withdraw XRP on the platform again after the snapshot is completed, Binance added. Despite the suspension of deposits and withdrawals, XRP trading on Binance will go on as usual.
Binance provided a formula to calculate the airdropped Spark amount for each XRP holder. They will use this formula “User A = Amount of XRP held by User A at the time of snapshot / Total XRP held by Binance at the time of snapshot * Total Spark received by Binance for the airdrop”.
The cryptocurrency exchange also rolled out some policies guiding the upcoming XRP airdrop. Binance revealed that users with less than 10 XRP coins at the time of the airdrop would not be eligible. Hence, those interested in taking part in the airdrop process should fund their XRP wallet over the coming days.
Binance’s support could persuade other exchanges
Binance declaring support for the XRP airdrop event may also convince other leading crypto exchanges to follow suit. Flare Networks revealed that other top exchanges like Coinbase, Bittrex, Kraken and Bitfinex are yet to make their positions known regarding the Spark distribution. Flare added that XRP holders who want Spark would have to consider moving their coins to exchanges that support the airdrop or keep the coins in their custody.
However, Binance agreeing to support the airdrop could see a wave of other cryptocurrency exchanges declaring a similar stance.
XRP is one of the best performing cryptocurrencies over the past week. It is up by 82% over the past week despite losing over 20% of its value in the last 24 hours. XRP raced to a yearly high of $0.76 before losing steam over the past 48 hours to now trade at $0.52 per coin.
The airdrop is generating a lot of interest around XRP, and some analysts believe it could push the cryptocurrency’s price higher over the coming weeks.