In fact, this has been clearly seen as one of the main reasons XRP’s price has been spiking in the past few weeks. XRP fans have been clearly buying up as many coins as they can in order to benefit from the fork which will result in an equal amount of Spark tokens as well. why does a vegetarian leave a smaller ecological footprint than an omnivore? Looking at the role of the token and its place in the burgeoning ecosystem, there is certainly room for a utility token that bridges to Ethereum and offers another path to DeFi. The DeFi space has exploded in 2020 and looks to be finding its foundation going forward.

As it stands, Bitcoin is trying to topple over $20,000 and is driving the entire market up, but the XRP market will use this and probably grow even more before December 12. Essentially, anyone who holds XRP in self-custody services can participate in this airdrop and will be eligible to receive the Spark tokens. However, actually claiming Spark will require some work and will differ depending on the type of wallet or exchange that you are using.

Users will have to pay fees in Spark for facilitating transactions whilst also using Spark as collateral in situations such as lending or borrowing. Finally, Spark will also act as a governance token, giving holders the right to vote on changes to the Flare network. So, if you were toinvest in XRP, you will be eligible to receive some Spark tokens once they are released. These tokens will be airdropped to users’ wallets and were due to be released earlier this year. However, many delays occurred, meaning that Spark tokens have not yet been provided to XRP holders.

Spark Token is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. It utilizes a basket of fiat-pegged stablecoins, algorithmically stabilized by its reserve currency SKT, to facilitate programmable payments and open financial infrastructure development. As of December 2020, the network has transacted an estimated $299 billion for over 2 million users.

Because the Abracadabra protocol is decentralized, smart contracts are used, prone to errors and data breaches. The airdrop of Spark token to XRP holders might then encourage them to use the protocol. The price of XRP is also often determined by the health of the cryptocurrency market, and that is then determined by how Bitcoin’s is doing.