Coinbase, the Nasdaq-listed cryptocurrency exchange, has announced the listing of Flare ($FLR), in a highly anticipated move following the exchange’s announcement that it is honoring its commitment to support an airdrop of FLR tokens for users holding $XRP at the time of the snapshot, i.e. December 12, 2020 .
Coinbase said on Twitter that it would support FLR coins on the Flare Network, but warned customers not to store them on other networks or their money would be lost. According to the top exchange, FLR trading will commence “if and when liquidity conditions are met and after our airdrop distribution is complete.” The cryptocurrency has been introduced to Coinbase under the Experimental label, which is meant to identify tokens that are new to exchanges or have “relatively low trading volume compared to our broader crypto market.”
Flare airdrops have started to be distributed to XRP holders who had XRP on exchanges at the time of the snapshot. FLR is distributed in a 1:1 ratio via airdrop. The Flare Network is a blockchain that adds smart contract functionality to XRP and other crypto assets that don’t already have it, however, it does so via a different blockchain from the XRP Ledger.
Spark tokens will be used for governance on the Flare network through a voting mechanism. Token holders will be able to get a return on their holdings by holding Spark tokens as collateral to secure the issuance and redemption of untrusted FXRP, a protocol designed to “enable the secure issuance, use, and redemption of XRP on Flare.” Notably, Coinbase was one of the cryptocurrency exchanges that phased out $XRP when the SEC sued Ripple and two of its officials, alleging they were trading unregistered securities when they released $1.3 billion worth of XRP coins. Ripple claims that XRP is not a security.