Cryptocurrency exchange and financial management platform Bitrue will begin airdropping Spark tokens to all of its users with XRP in their accounts, as the native token underpinning the Flare Network is rolled out.
Among the primary functions of the Spark token will be the trustless issuance of FXRP - a new defi-compatible version of XRP. Bitrue will take snapshots of its customers’ accounts on Dec 12, 2020, with the airdrop process expected to take place in the following months.
Spark Token and Decentralized XRP
Flare Network aims to bestow smart contract capabilities upon holders of XRP, a coin which has until now taken its main focus as remittance and payments. Leveraging a Turing complete Federated Byzantine Agreement network, Flare is also compatible with the Ethereum Virtual Machine, meaning Ethereum-based apps can be built on Flare, and vice versa.
Flare received investment from Xpring - the investment wing of Ripple - in 2019, and has since been focused on creating new use cases for the XRP token. One of its main contributions has been FXRP - a Flare-based version of XRP which can be used across the Ethereum network, and, as such, can be used among the various applications which make up decentralized finance.
FXRP is a 1:1 representation of XRP, and will be created by the trustless collateralization of Spark tokens. The issuance process can be reversed at any time by swapping FXRP back for the original XRP token. Flare documentation suggests XRP and FXRP token addresses will be compatible and will use the same encryption, meaning both XRP and FXRP can be used with a single key.
Bitrue was the first platform to announce support for the Spark token airdrop, anticipating the draw that a trustless, defi-compatible version of XRP would have with XRP holders. The platform’s symbiotic relationship with XRP is such that it quickly rose to become the second busiest platform for XRP trades in the world in 2020, representing 13.4% of global trade volume, second only to Binance
Users who wish to participate in the XRP snapshot need only deposit their tokens onto Bitrue ahead of the December 12 snapshot date. Bitrue will automatically credit user accounts with the corresponding amount of Spark tokens upon their issuance, which is expected to occur in March 2021. The exchange will also open a market for trading Spark tokens as soon as they become available. Given the uncertainty surrounding whether other exchanges are supporting the airdrop, traders may conclude that Bitrue is best suited to calculating and disbursing Spark, particularly given its strong ties to the XRP community.
Since becoming incorporated in 2018, Bitrue has gone on to expand beyond the remit of a mere cryptocurrency exchange, introducing a host of financial tools and products more typical of online banking. This includes passive earning on staked funds, the issuance of loans, as well as credit cards, along with various defi services.
In November, Bitrue announced that it would employ the services of blockchain oracle service, Chainlink, for use in its daily XRP raffles. Bitrue CMO, Adam O’Neill, said the decision to use Chainlink technology was made in order to provide extra fairness and transparency to users who took part in the platform’s XRP lotteries.
The same month, Bitrue raised the rate of annual returns that users could gain on its PowerPiggy investment product to 5.3% – the highest rate in the industry. O’Neill said the platform’s focus on XRP was at the behest of Bitrue’s community, and that he was proud to oversee one of the most popular venues for XRP investments..
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