NXT Set to Burst Ahead of IGNIS Airdrop This Month? It’s a Gamble
NXT holders will be eligible for the free IGNIS airdrop after the Ardor Genesis Snapshot later this month. The price has risen significantly in anticipation of the free tokens, but it remains a gamble.
Jelurida, the corporate entity of developers which maintains the NXT blockchain and is launching the new Ardor platform on January 1, 2018, has announced that all holders of NXT will be getting free IGNIS tokens (IGNIS is Ardor’s first child-chain) after the upcoming Ardor Genesis Snapshot.
The Genesis Snapshot is scheduled for December 28, and will take place on the NXT blockchain, but there is no information about the block height as yet. Given the prospect of the free IGNIS airdrop, NXT experienced a major pump, going from around $0.06 in November to almost $0.80 in the past few days as the hype caught on.
IGNIS tokens, which will be made available after Ardor’s January 1 launch, are currently valued at over $3 (futures price on HitBTC), and while this is a highly unreliable estimation of their real price, it is enough to get people to join the NXT bandwagon before December 28.
Simple math reveals that if a person buys 1,000 NXT tokens for $0.70, the total investment would be $700, and after January one, the airdrop would include 500 IGNIS tokens (2:1 ratio), which if priced at $3, would amount to $1,500 (and you still keep the original NXT).
However, if anyone enters this trade, they should do so with full knowledge of the risks involved. Firstly, NXT’s price is highly inflated due to the airdrop, and once the snapshot is complete, people will have very few reasons to hold NXT. Given this, it wouldn’t be surprising to see NXT drop down back to under $0.10.
Secondly, even if you hold NXT during the snapshot and get IGNIS, they are going to be dumped on exchanges very fast and the value will drop significantly, so you will stand to lose on both ends, IGNIS and NXT.
That being said, if NXT’s price goes higher around the time for the snapshot, it may make for a good opportunity to get a quick profit. Meanwhile, there is no official word on which exchanges will support the snapshot, but the best way to make sure you get the free tokens is to move your NXT to the official wallet.
For those who don’t know, NXT is a blockchain platform that has been around since 2013, and while it has promising features, it didn’t really take off due to several issues, including the disappearance of its anonymous creator BCNext and lack of funding. Now with Ardor, the development team aims to get things right and build a new platform with the best features from NXT.
Even though NXT will be maintained by Jelurida after Ardor is launched, the community does not expect it to thrive much after the new platform takes off.