The Flare Network has announced that it will support Litecoin.
They also said that information would soon be available on an airdrop for Litecoin holders.
Could Flare integrate even more protocols?
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Ripple’s increase in late 2020 was partly due to an airdrop of Flare tokens (FLR). Now the intelligent contract solution adds support for Litecoin (LTC). An FLR airdrop for Litecoin users is currently underway.
Flare will integrate Litecoin prior to the launch of the Flare network in Q2. This will allow LTC to be used with confidence on intelligent Flare style contracts with Ethereum and will give LTC interoperability and composability. #LTC #Unlockingvalue @LTCFoundation @litecoin / 1 of 2
The XRP wallets included in the December snapshot will receive Flare tokens (of potentially huge value).
Now, in a tweet on 8 January 2020, Flare says they will „reduce“ the number of Flare tokens for the project’s founders by 5 billion. This extra will be distributed to „Litecoin participants“. The Tweet promises to clarify the situation in the coming week.
A light flare for airdrops
The tokens on the Flare network, known as Spark, will be used for governance and as collateral after the expected decline in tokens in the second quarter of 2021. The company plans to bring smart contracts to Ripple’s XRP. Previously, Ripple was seen as a means of transferring funds, and Flare says the Spark tokens will add value.
With this tweet, the company is announcing what was somewhat unexpected: that the network will support other cryptosystems other than XRP, namely Litecoin.
Flare received a huge amount of press and hype before the December snapshot for the airdrop to XRP holders.
For what it’s worth, the company names its FLR tokens: XFLR (for XRP) on its website. There may be LFLR tokens for Litecoin. But it may not end there. Flare could add support for other currencies.
I sometimes forget, but every time I see the mention of @FlareNetworks, I realize there could be some real media frenzy around this thing. It could push the $ XRP and $ FLR up to probably very high prices. If it works as promised, this event will be far superior to Ethereum 2.0. I can’t wait.
Flare said he might support other networks in the future, but this has received little attention. Supporting, for example, the Bitcoin network could have huge implications and could set ETH up against serious competition.
Smart contracts and Ethereum competition
The short version of the purpose of Flare is to facilitate intelligent contracts on protocols that do not have them built in. Flare is supported by XRP, and the airdrop on most XRP portfolios puts Flare in the spotlight.
The last few weeks have been marked by an insane interest in Ethereum, and as a proven and secure smart contracting chain, this comes as no surprise. Crypto No. 2 may interest new investors if they feel they have „missed the boat“ with Bitcoin.
But the technology that underpins Ethereum’s value is smart contracting. Although there are many other similar protocols that are potential rivals (DOT, ADA, EOS), Ethereum still reigns supreme.
However, if other networks (such as XRP or LTC) could support smart contracts, this would broaden their appeal. If these protocols could be interoperable via the Flare network, it would be a coup for the Spark Tokens (Flare has not suggested that they have plans for this).
Back to XRP holders
Even if this new airdrop on Litecoin means free money, some people may not be satisfied with the success of Flare.
On the one hand, the bank’s crypto critics see an association between Ripple, which supports Flare, and the XRP, which is designed to play nice with banks and governments.
On the other hand, the US SEC lawsuit against Ripple and the possibility of the withdrawal of exchanges have put the token on shaky ground. Massive fines for Ripple and a ban on working in the US could be foreseen (although this is not a foregone conclusion). This fear could spread within Flare.
With XRP rallying by nearly 50% last week, it seems the emotional market has quickly forgotten the desperation of the XRP trade suspension. And nothing like an airdrop to get people’s attention.