- Japanese exchange GMO will issue Songbird tokens in Yen to Japan holders as compensation for the delayed airdrop.
- The FLR and SBG airdrops were delayed due to the SEC’s case against Ripple for breaching security laws.
Japan-based crypto exchange GMO has announced that it will compensate users who held XRP in 2020 with the Japanese Yen for the delayed Songbird token airdrop.
Songbird is a “canary” experimental blockchain used for testing network architecture on the Flare Network. It was initially developed as a DeFi application using XRP tokens before transitioning into a Layer-1 blockchain.
In April, GMO Financial Holdings, the parent company of GMO Coin, acquired a 10% stake in the multi-strategy crypto hedge fund AWR Capital. The Japan-based exchange is ranked ninth on Forbes Digital Assets’ list of the world’s largest crypto exchanges.
The Songbird airdrop, which was supposed to happen two years ago, as snapshots of XRP on blockchains and exchanges were taken on the 11th of December 2020, was delayed by Ripple’s court case with the SEC. XRP holders were supposed to receive both Flare’s FLR and SBG airdrops.
On the 10th of January 2023, the long-awaited Flare FLR airdrops were distributed to XRP holders but was poorly received as it was immediately dumped by recipients, resulting in a massive price drop.
However, due to local regulations, some exchanges in the country excluded holders residing in Japan from the airdrop. To placate XRP holders, GMO will issue Songbird airdrops in the equivalent of the Japanese Yen.
The announcement has been met with support from non-Japanese and Japanese users. At the same time, other crypto exchanges, including Binance and MEXC, have continued to show their support for the Songbird ecosystem.
Eligibility Criteria for Songbird Airdrop
According to the website, the eligibility criteria are customers who held physical Ripple (XRP) in their GMO accounts as of December 12, 2020.
Users will receive the yen equivalent of 0.1511 SGB for every 1 XRP held at that time. “Customers using crypto assets lending services are also eligible,” the exchange clarified.
The delivery amount will be based on the snapshot of Ripple XRP converted into Japanese Yen using GMO’s arbitrary method and time. GMO added that the funds will be distributed to the accounts of eligible customers by the 29th of September.
Ripple’s Long-Standing Feud With the SEC
In 2020, the Securities Exchange Commission (SEC) accused the crypto exchange and its co-founders of breaching security regulations over the sales of its native crypto without proper registration. However, the exchange received partial victory in July after a New York Judge issued a favorable ruling, causing the price to surge by more than 70%.
Despite regulatory hurdles in the United States, Ripple has moved to expand its business in Asia as part of a global expansion strategy. The blockchain-based payments company received preliminary approval from the Monetary Authority of Singapore (MAS) to offer its services in Singapore in June.
It also sealed a deal with SBI Remit Co last month to enable the remittance company to utilize Ripple’s XRP cryptocurrency as a bridge currency across several Asian countries.