NXT recently saw the value of its token leap by as much as 43% in the last 24-hour period, as cryptocurrency exchange Bittrex, currently the third biggest one on the market with a $4.4 billion trading volume, announced it would support its 500 million IGNIS token airdrop.
Yes, we are supporting the IGNIS airdrop. https://t.co/sDB8iD9Bfa
— Bittrex (@BittrexExchange) December 20, 2017
Ignis (IGNIS) is the first child chain of the new Ardor platform, which will launch on January 1, 2018. Every NXT holder will be getting free IGNIS tokens at a rate of 1:05, after an upcoming Ardor Genesis Snapshot. Meaning that every investor that holds two NXT tokens at the time of the snapshot will then receive one free IGNIS token.
The Genesis Snapshot, according to reports, is scheduled for December 28 and will take place on the NXT blockchain. Jelurida has not announced the exact block height, Jelurida is the corporate entity of developers behind the NXT and the Ardor projects.
NXT holders who were looking to get the free tokens would, if not for exchanges supporting the airdrop, need to have the NXT wallet installed. Since Bittrex, just like HitBTC, announced its support, any cryptocurrency trader can grab a few tokens to take advantage of the airdrop.
Bittrex’s announcement, however, adds that it will stop NXT trading to take an accurate snapshot of its users’ balances and that it can’t guarantee tokens nor the creation of a market for them. The announcement reads:
“Bittrex will make all reasonable attempts to credit our users IGNIS but until we have a fully supported wallet, we can neither guarantee tokens or consider creating a market. We will continue to monitor the state of the codebase and network.”
Nevertheless, it helped NXT’s price leap 43.53%, meaning one token is now trading at $1.16, according to data from Cryptocompare. Notably, NXT’s developments allowed it to surge nearly 1,000% since late November when each token was trading at around $0.1.
Ignis futures are currently available on HitBTC and are trading at $2.7. The substantial value difference may lead to volatility after the airdropped tokens are credited, as any trader can purchase NXT just to get IGNIS tokens.
Volatility may ensue
As stated above, any Bittrex or HitBTC trader can try to grab free IGNIS tokens by purchasing NXT before the snapshot and then dumping it later on. Meaning that volatility is almost inevitable for both cryptocurrencies, and as such traders are advised to proceed with caution.
Other major exchanges, including Poloniex. Haven’t yet announced what they will do. If they support the airdrop, expect significant price swings.