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Flare Airdrop Issue: Coinbase Facing Class Action Lawsuit

  • Flare Airdrop is one of the most anticipated events in the digital asset industry's recent history.

  • However, the distribution of FLR tokens did not meet the expectations of holders of Ripple's native token, XRP.

  • As a result of this disappointment, a class action lawsuit has been filed against the leading crypto exchange Coinbase.

17 Jan 2023 By : COIN GABBAR
Flare Airdrop Issue:

As per recent reports, the leading cryptocurrency exchange Coinbase is facing a class action lawsuit over an issue with the Flare (FLR) token airdrop. 

The Flare (FLR) token airdrop was one of the most anticipated events in the XRP community. Users who had XRP tokens nearly two years ago, at a December 2020 snapshot, are eligible to receive FLR tokens. 

On January 10th, the Flare network began airdropping FLR tokens to XRP holders. However, things did not go as smoothly as anticipated.

The lawsuit against Coinbase was filed in the US District Court on January 13. Plaintiff Dallas Woody has filed a lawsuit against the exchange for refusing its users access to Songbird and Flare tokens. 

As per reports, the crypto exchange has officially agreed to issue the airdrop to XRP holders. It stated that the lawsuit was brought on behalf of everyone who could profit from the Flare Airdrop. However, the complaint also names Brain Armstrong, the CEO of Coinbase.

What exactly is the Flare token, and why is Coinbase being sued?

The Flare network was built in order to increase the utility and functionality of EVMs. Furthermore, the primary purpose of Flare Network is to bring secure, decentralized smart contracts to other protocols like Litecoin and Ripple.

FLR is a multipurpose token that boosts the network and the currency's worth. For example, the FLR token can be utilized for transaction fees, collateral, and governance participation.

Earlier this month, Flare (FLR) support was enabled by Coinbase, Kraken, Bitfinex, and other exchanges. People are accusing the exchange of failing to complete the deal. Many people also rushed to Twitter to express their displeasure with the exchange.

The lawsuit is the latest setback for Coinbase. The exchange recently announced that 20% of its global workforce would be laid off. As per reports, the firm may close multiple operations in Japan as a result of the layoffs.

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