Deconstructing the Culprit Behind XRP's Surge
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Deconstructing the Culprit Behind XRP's Surge
As of 2:00 PM Beijing time, XRP was trading at $0.7729, up 68.76% in 24 hours.
Navigating Web3 tides with focused insightsOver the past 24 hours, XRP (the token of Ripple, also known as Ripple Coin in Chinese) has surged approximately 68.76%, leading all top five major cryptocurrencies in terms of gains.
Why did XRP rise? And why so sharply?
Ricky Liu, founder of the Knowledge Planet community "Ripple Star," told TechFlow that part of the reason was Ripple's recent official announcement of a partnership with Bank of America.
On November 23, Ripple’s official website showed Bank of America appearing among RippleNet partners. Ricky Liu said this marks the first time Ripple has officially confirmed a collaboration with Bank of America — “Previously, it was just rumors.”
"Another factor is the Spark token airdrop," said Ricky Liu.
According to TheDailyHODL on September 2, Flare Networks, a blockchain company partnered with Ripple, stated they plan to launch a new token called Spark based on the XRP Ledger in December. XRP holders can claim one free Spark token for every XRP they hold starting December 12. With Spark, users will be able to issue and redeem FXRP tokens (which serve as gas for smart contracts on Flare), thereby generating returns.
In addition, according to Cointelegraph, possible reasons behind XRP's surge may also include an increase in unique addresses, Ripple's buyback activity, and potential new product launches.
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Addresses interacting with XRP surged in late November. On November 22, this trend intensified, with XRP rising 27% in a single day.
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In the third quarter of 2020, Ripple purchased $45.5 million worth of XRP through its buyback program.
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At the beginning of November, Ripple Labs filed a trademark application with the United States Patent and Trademark Office (USPTO) for a product named Paystring. The application describes Paystring as a financial service product used for sending and receiving remittances.
XRP was issued in March 2013 and began trading in April 2014, with a total supply of 100 billion tokens and an initial price of 0.0000007 yuan.
As of 2 p.m. Beijing time, XRP is trading at $0.7729, up 68.76% over the past 24 hours.
Appendix 1: When and How Will Spark Token Airdrops Be Received? (Source: https://blog.flare.xyz/further-information-on-the-spark-token-distribution/)
At network launch, each eligible account will initially receive 15% of their total entitled Spark tokens via airdrop. The remaining Spark tokens will then be distributed gradually over a period of 25 to 34 months.
Each month, the Flare network will generate a time-based pseudo-random number using the Time Series Oracle (FTSO) system. This number determines the percentage of Spark tokens to be airdropped in stages.
For example, if an account is entitled to 1,000 Spark tokens and the FTSO selects a monthly distribution rate of 4%, they would receive 1,000 * 15% = 150 Spark tokens on Day 1, followed by (1,000 - 150) * 4% = 34 Spark tokens per month for 25 months, resulting in a total of 1,000 Spark tokens.
The average value of the pseudo-random draws should equal a monthly distribution rate of 3%. At this rate, the entire airdrop allocation would be completed within 34 months. The airdrop process will continue uninterrupted until either all Spark tokens are distributed (minimum 25 months) or 34 months have passed. At the end of 34 months, any remaining undistributed Spark tokens will be either destroyed or further distributed based on governance voting. (If a destruction event occurs, individual recipients' total token amounts will decrease, but their ownership percentage remains unchanged.)
Appendix 2: Third-party Spark Token Staking and Airdrop Tracking Website (Not the Official Airdrop Distributor)
https://www.flow.page/flarefinance
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