Airdrops were formerly a common strategy to boost acceptance for new crypto networks in the aim of attracting organic activity. With its ultra-low transaction fees, XRP appeared especially appealing. The SEC’s action against Ripple in December 2020, however, altered the scene for XRP-friendly airdrops.
Uncertain Future Prompts Rush for Airdrop Campaigns
Many projects see early 2021 as the last chance to execute successful airdrop campaigns for XRP token holders, fearing probable penalties from the US government, such as the suspension of the XRP Ledger or a significant financial settlement against Ripple.
The aftermath, however, portrays a dismal image, with most social media accounts affiliated with airdrops either going dormant or disappearing outright. Some ads claimed to assist charity organizations, while others may have exploited celebrity photographs without authorization or used dubious marketing methods.
Read Also: Flare (FLR) Announces New Batch of Airdrop Available to Claim for XRP Holders: Details
Flare (FLR) Airdrop: A Promise That Failed to Deliver
Flare, with its grandiose goals, carried out the largest XRP airdrop in history. However, the long-awaited airdrop, which occurred in January 2023, did not live up to the initial hype.
Based on a snapshot taken in December 2020, when the SEC had just filed its lawsuit, Flare’s airdrop allocated 1 Flare token (FLR) for every 1 XRP held by users. Flare initially traded above $0.04, giving in a $170 million perceived gift to the XRP community. Unfortunately, the FLR price immediately fell as airdrop recipients sold their tokens at any available price.
FLR has struggled to recover since then, currently trading 90% below its initial day of trading. Notably, Flare has diluted the quantity of FLR tokens, reducing original holders’ holdings from 4.28 billion to 18.9 billion circulating FLR tokens.
Furthermore, Flare abandoned its initial aim to develop decentralized finance (DeFi) software using XRP in favor of becoming a Layer 1 blockchain and Oracle network. Although there was a rise of interest in FLR during Flare’s snapshot in January 2021 and the accompanying airdrop in January 2023, interest has since dropped to new lows.
Other Airdrops to XRP Holders: A Similar Pattern Emerges
Most XRP airdrops have followed a similar pattern to Flare, failing to deliver on their initial promise. As an example:
XPcoin (XP) Airdrop by xpmarket Validator
xpmarket validator initiated an airdrop campaign in January 2022, delivering XPcoin (XP) to everyone who signed into its website or scanned a code using the Xumm app. The airdrop, however, was a failure, and the value of XPcoin is now stated as $0 on its own website.
XRP Healthcare’s (XRPH) Planned Roadmap
In Q4 2022, XRP Healthcare planned to airdrop its token, XRPH, as well as standalone XRPH wallets. XRPH saw variable price movements after joining Twitter in September 2022, reaching a high of $0.228 and a low of $0.18 on February 10, 2023. The token’s current price is around $0.044 as of July 3, 2023, with a fully diluted valuation of $4,454,002. It reached an all-time high of nearly 30 cents on March 9, 2023.
XNET Airdrop
XNET, for example, planned to take a snapshot of the XRP network on January 12, 2024, and then airdrop XNET tokens to XRP holders on March 20, 2024. Although XNET initially peaked at $4 on November 28, 2022, its current price is $0.035, representing a 99% drop with a fully diluted valuation of around $849 million.
CORE and XCORE Airdrops by Coreum
Coreum executed a snapshot on March 24, 2023, with airdrops set for April 1, June 1, August 1, and November 1, 2023, with the CORE airdrop planned for XRP holders. Coreum also planned an XCORE token airdrop on May 15, 2023. CORE’s value has dropped by 82% to around $0.12 as of July 3, 2022, from a peak of slightly over $0.69 on its launch day, March 7, 2022. The project is presently valued at $59 million when completely diluted.
Read Also: Coinbase Sued for Refusing to Airdrop Songbird (SGB) and Flare (FLR) to XRP Holders
Vagabond (VGB) Airdrop
Vagabond (VGB) took a snapshot of XRP investors upon its inception in November 2021 and witnessed an all-time high of more than $75, boasting a market capitalization in the billions. However, VGB has now dropped by 99% and now trades below $0.01, with a market valuation of less than $1 million.
These examples show that airdrops to XRP holders frequently result in poor results. Most projects have an initial boom during their first week of trade, followed by a dramatic decrease.
Finally, the history of XRP airdrops demonstrates the problems that projects intending to use this distribution mechanism confront. While they originally held great potential for encouraging adoption, the reality has been disappointing. Crypto fans must carefully evaluate the viability and long-term potential of initiatives that rely on airdrops to draw attention and establish a dynamic community.
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