While having spent the last few months in direct communication with the Flare team and our institutional wallet provider Curv, we regret to inform clients that we will not be able to support the Flare Token Distribution event.
We sincerely apologize to our clients as we truly did our best to be able to support the distribution event, but Curv stated that they simply did not have enough time to securely meet the deadline placed by the Flare team.
As you can imagine, any security provider that will potentially secure billions of dollars under their protocols needs to move incredibly meticulously when building in such a claim mechanism as was required by the Flare team. We are proud to work with Curv and stand by their decision to place security as the highest priority and thus, not being able to meet the engineering deadline.
We would never want any security provider to feel rushed to the point of providing sloppy implementation, avoiding audits or doing anything to endanger the real value at hand – the finite supply of value that is XRP tokens.
True Demand and Comparable Valuations
It’s important to note we were the first and nearly only institution to request Curv support for the distribution event, it appears that institutional demand for this token distribution event is minimal and is mostly driven from retail speculation due to an excellent marketing effort by Flare and the XRP community.
Flare is roughly the 87th EVM compatible blockchain to launch within the last few years. There have been nearly zero EVM based blockchains that have received any meaningful adoption and developer support outside of Ethereum, which was the inventor of the Ethereum Virtual Machine (EVM). For comparable valuation understanding, internal analysts predict Flare to trade at similar valuations as other EVM solutions, which historically trade around the 25m-100m market capitalization valuation.
If this analysis stands true, that means a client holding $10,000 of XRP would only receive around $10-$50 worth of Flare tokens. This translates to less than 1% of value received.
If clients still want to take advantage of this token distribution event, they will need to take a distribution from their retirement account, which will likely incur steep early withdrawal penalties and potential large tax consequences. You can learn more about that here.