Ripple CTO David Schwartz voiced his harsh criticism of the Flare Network in a series of tweets today. After more than two years after the snapshot for XRP holders, the project finally conducted an airdrop for the FLR token on Monday, January 9.
As NewsBTC reported, the FLR token has experienced a massive dump of more than 71% on Bitrue in the run-up to the airdrop, where the token has been able to trade as an IOU. After that, things did not improve and FLR went down, with a total loss of 93% since Sunday, January 8. At press time, FLR is trading at $0.0437.
So, the price of FLR is not in no man’s land. The IOU on the token debuts in January 2021 on Bitrue and starts at $0.0831. After that, the FLR token rose to $2.2472. There is no time to trade FLR below the January 2021 debut price.
Ripple CTO Raises Harsh Allegations Against Flare Team
Via Twitter, Ripple’s chief technology officer write that the current rules to hold Flare for subsequent airdrops provide absolutely no incentive not to sell Flare now. “You’ll lose *nothing* if you sell now,” says Schwartz.
He added that if it’s true that XRP holders miss the next airdrops, you won’t lose anything. As Ripple’s CTO explained, you can get 100% of the value if you sell Flare, because the buyer can wrap the token and get airdrops.
In general, Schwartz considers the distribution of airdrops “a very strange decision.” For a long time, the project advertised that XRP holders would immediately receive an amount of FLR tokens.
However, the team did not live up to its promise. He stated that with the first airdrop, only 15% of the total 1.0073 FLR will be distributed for each XRP. The remaining 85% of FLR tokens will be released in 36 installments per month, with the method of distribution still dependent on community voting.
Schwartz sees this as a breach of commitment. “I want to be wrong, but I don’t know how,” Ripple CTO said, following another serious accusation:
I feel bad saying this. I love the project and want the best and want to believe the best about it. But my honest opinion is that they used the XRP community to grow and drastically broke their promise when they felt they no longer needed it.
While Schwartz has a statement in the following tweet when he writes that this does not mean that he is “dishonest or that the project is bad,” he also said that XRP has developed while the Flare Network team “failed to fulfill some promises” from the beginning.
You can love Flare and love XRP too. It’s not one or the other. But I don’t have a happy fuzzy feeling about how it went down.
Schwartz suggests selling FLR Tokens (later)
In response to a user’s follow-up question about whether now is the best time to “take profits,” Schwartz replied:
I’m not saying people should sell. I’m just saying that they act irrationally if they don’t sell because they want the value of the remaining 85% of the airdrop. It’s just irrational.
Another user countered this argument by saying that FLR has become “worthless” after the big crash, so token holders should wait. Ripple’s CTO agreed, stating that “now is probably the worst time to sell. It would be silly not to wait.”
Featured image from Forbes, Chart from TradingView.com