Spark Token on iTrustCapital (FAQ)
Table of Contents
A Brief History:
What We’re Doing Now:
Your Options:
The Future:
Frequently Asked Questions:
Will iTrust be participating in the DFLR airdrop?
Will clients be able to take distributions?
Will iTrust be supporting the trading of Spark Token?
Will I be able to receive my Spark tokens if I bought XRP after the snapshot?
Will I be able to convert my Spark into another asset?
Will you be supporting any future airdrops?
Will taking a distribution of our Spark tokens be a penalty or a taxable event?
Who will be the custody provider for the Spark token?
Will iTrust be able to provide tax advice on how the IRS will treat the Spark token airdrop?
What happens if we took our XRP off the platform and closed our account after the snapshot?
Why was the iTrust snapshot date before other exchanges' snapshot date?
What happens if I bought my XRP after your snapshot cutoff date?
Can I move other Spark tokens over to my iTrust account?
Will we be able to Stake our Spark Tokens?
My XRP tokens were with another custodian at the time of the snapshot, am I still eligible for the Spark token airdrop?
A Brief History:
In the middle of 2020, Ripple CEO Brad Garlinghouse spoke glowingly of a new digital asset with the potential to leverage the best qualities of Ripple (XRP), Ethereum (ETH) as well as AVAX (Avalanche). The endgame was to launch a smart contract network that would be fast, cost-efficient, and provide limitless digital land for developers to build. Hence the Flare Network was born.
It was later announced that an airdrop would occur revolving around Flare Network’s Spark token (FLR). 1 Spark token was to be distributed to each XRP token held. The eventual distribution of the Spark token was conducted via a snapshot in December of 2020. For example, if an iTrustCapital client owned 500 XRP tokens when the snapshot was conducted, they would be eligible to receive 500 Spark tokens when the network goes live.
iTrustCapital’s snapshot was taken before some other exchanges’ snapshots. In fact, there were two snapshots to ensure individuals were not trading and to confirm the amount of XRP in our wallets for Flare’s snapshot. Clients would have to have purchased their XRP on our platform before our snapshot of December 9th, 2020 at 4 pm.
Since then, a slew of additional airdrops have been announced, including, but certainly not limited to:
Flare Network - Songbird (SGB)
Flare Finance - DoaFlare (DFLR)
Flare Finance - SongbirdFlare (SFLR)
It’s vital to note that Flare Finance and Flare Network are not affiliated. The Flare Finance team is an independent team that is building on the Flare Network.
What We’re Doing Now:
We have partnered with Hex Trust to custody iTrustCapital client Spark (FLR) tokens. However, we will not be supporting the trading of FLR at this time. Spark token is a derivative of XRP and its legal status is contingent on the current SEC lawsuit against Ripple and XRP.
In addition, at least at this moment in time, we do not plan to participate in any future airdrops. We also do not plan on supporting any Spark token Staking at this time. If this changes, we will make an announcement via our media pages and website.
With specific respect to the DoaFlare (DFLR) airdrop, iTrustCapital will not be participating. As mentioned above, the Flare Finance team is an independent team that is building on the Flare Network, but they have no affiliation with the Flare Network and we do not plan on supporting their airdrop.
Your Options:
Clients are welcome to store their Spark token balance with iTrustCapital through our partnership with Hex Trust. Spark token balances will be displayed on client dashboards.
Alternatively, clients can always exercise their right to withdraw their funds. Taking a distribution may trigger a taxable event. We are not financial advisors, and we are unable to give tax advice. Please consult with your CPA or tax advisor regarding this and other matters.
The Future:
Clients will be required to maintain an account with iTrustCapital during the entire duration of the airdrop distribution. Clients will not be permitted to deposit additional Spark tokens into their IRA accounts as the IRS does not permit contributions to be made in anything other than USD. Clients will also not be able to Stake their Spark token through their IRA at this time.
Frequently Asked Questions:
Will iTrust be participating in the DFLR airdrop?
- No, iTrust will not be participating. The Flare Finance team is an independent team that is building on the Flare Network, but they have no affiliation with the Flare Network, and we do not plan on supporting their airdrop. If a client would like to participate in the DFLR airdrop, they will have to request a distribution, which is explained below.
Will clients be able to take distributions?
- Yes, clients will be able to take an In-Kind Distribution to a wallet of their choice, or an In-Kind Transfer to an eligible IRA. This may be a taxable event, so clients should speak with their CPA or tax advisor about the implications of moving their funds.
Will iTrust be supporting the trading of Spark Token?
- We will not be supporting trading at this time. Spark token is a derivative of XRP, and its legal status is contingent on the current SEC lawsuit against Ripple and XRP.
Will I be able to receive my Spark tokens if I bought XRP after the snapshot?
- No, clients would have to have purchased their XRP on our platform before our snapshot of December 9th, 2020, at 4pm.
Will I be able to convert my Spark into another asset?
- Not at this time.
Will you be supporting any future airdrops?
- At this moment in time, we do not plan to participate in any future airdrops. If this changes, we will make an announcement via our media pages and website.
Will taking a distribution of our Spark tokens be a penalty or a taxable event?
- We are not financial advisors, and we are unable to provide tax advice. Please consult with your CPA or tax advisor.
Who will be the custody provider for the Spark token?
- We have partnered with Hex Trust to custody your Spark Tokens. https://www.hextrust.com/
Will iTrust be able to provide tax advice on how the IRS will treat the Spark token airdrop?
- No, we are not financial advisors and clients would need to speak with their CPA or tax advisor.
What happens if we took our XRP off the platform and closed our account after the snapshot?
- Clients will still be able to take distributions of their Spark Tokens, but an account would need to be opened in order to do so.
Why was the iTrust snapshot date before other exchanges' snapshot date?
- There were two snapshots to ensure individuals were not trading and to confirm the amount of XRP in our wallets for Flares snapshot.
What happens if I bought my XRP after your snapshot cutoff date?
- Any XRP purchases that happened after the deadline will not be available to participate in the airdrop.
Can I move other Spark tokens over to my iTrust account?
- No, unfortunately you cannot fund your account with cryptocurrency unless the crypto assets are being transferred in-kind from a qualified Crypto IRA per the IRS rules and regulations.
Will we be able to Stake our Spark Tokens?
- We do not plan on supporting any Spark token Staking at this time.
My XRP tokens were with another custodian at the time of the snapshot, am I still eligible for the Spark token airdrop?
- Only iTrustCapital clients who owned XRP tokens at the time of the snapshot will be eligible for the Spark airdrop. Clients who were with another IRA provider at the time of the snapshot need to reach out to their previous custodian to inquire about their eligibility.
Disclosure: We are not licensed financial or tax advisors — always consult with a tax professional to determine what is best for you. Important Note: All investments involve substantial risk of loss. All trading strategies are used at your own risk and you are responsible for the financial resources you utilize. If the market moves against you, you may sustain a total loss of the initial amount you allocated to the investment. you should not engage in trading unless you fully understand the nature of the transaction you are entering into and the extent of your exposure to loss. If you do not fully understand these risks, you should seek independent advice from your financial advisor. iTrust is not an investment specialist, tax specialist, financial planner (certified or otherwise), or retirement advisor, and iTrust does not provide investment advice, tax advice, financial planning services, or retirement planning or retirement-specific advice. iTrust facilitates the purchase of digital currency and precious metals, nothing more, and charges a fee for the service it provides. All investment decisions are made by iTrust users. Please read the full Risk Disclosure.
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