Flare has decided to airdrop SPARK tokens to XRP holders by taking a snapshot of XRP balances on December 12, 2020. We have seen an impressive rise in the price of XRP by over 300% from $0.26 to $0.80 as the date of the SPARK airdrop approaches.
45 billion SPARK tokens will be awarded to XRP owners (except Ripple Labs and a few previous Ripple employees) in an approximate 1:1 ratio. So if you are holding 1,000 XRP, you will be awarded with approximately 1,000 SPARK tokens if your exchange supports this airdrop.
You can find out the details of the SPARK airdrop here.
So is it a good idea and time to long XRP after such a big rally? The answer is NO. It is time to be smart and claim the SPARK tokens for free! Yes, that’s right! Free SPARK airdrop for you.
SPARK will be awarded based on the XRP that you hold in your spot wallet. So we can use this opportunity to reduce our risk on the fluctuation of XRP price.
To be able to get SPARK for free, you need to have an account on exchange which:
- Supports the Flare SPARK airdrop to XRP holders.
- Provides you a platform to short XRP.
Let us find out how we can claim SPARK for free in two simple steps.
Buy XRP worth 50% of your portfolio in your spot account. Assuming you have $10,000, you should buy $5,000 worth of XRP in your spot account. Transfer the remaining $5,000 to your futures/margin account of your exchange. Let’s say you opened a long position of $5,000 worth of XRP at $0.60 in your Spot account.
Short XRP worth the remaining 50% of your portfolio in your futures account. Assuming you have $10,000, you should short $5,000 worth of XRP in your futures/margin account with a 1X leverage. Let’s say you opened a short position of $5,000 worth of XRP in your futures/margin account at the exact same price that you longed XRP in your spot account.
So what we did here is, we have mitigated our risk. We have the same position of long and short order on XRP – $5,000: long XRP at $0.60 and $5,000: short XRP at $0.60.
Irrespective of where the XRP price moves, you will be at a net 0 profit and loss. If XRP price goes up, the profit in your spot account will be equal to the loss in your futures/margin account, and if XRP price goes down, the loss in your spot account will be equal to the profit in your futures/margin account.
Maintain both these positions till the 12th of December. Once the snapshot is taken, you will be airdropped SPARK in proportion to the $5,000 XRP that you hold in your spot account. After the snapshot is over, you can simply close your spot long and futures/margin short position to enjoy your free SPARK tokens.
Get SPARK tokens for free. Get smart!
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