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Looks great. Did you consider having it automatically upload on the drop? Having the upload button seems like an unnecessary extra step.

Anyways, I bookmarked it and will be using it.

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It actually starts preuploading the image to the server as soon as you insert it, clicking the upload button just confirms that you want to upload the image. When you click the button the server starts uploading the image to the cloud and generates the link for it.

The extra step is also there to let you crop the image, if you wish.

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