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Highlights
- Australia is prepping for the Australian Crypto Convention, which is to be held in Queensland in September 2022.
- Bitcoin appears to be somewhat stable at US$21,000 for now, and the Spell token has gained very sharply.
- There were concerns around the peg of stablecoin MIM, which abracadabra.money has recently addressed.
Cryptocurrencies seem to have pared some losses over the weekend. Unlike the stock market, the global crypto market functions even on Saturdays and Sundays.
As of writing, the market’s bellwether asset Bitcoin is holding its ground at over US$21,000. But one crypto that has gained more than most of the others is the Spell Token or simply Spell. What is pushing the price of the Spell crypto higher, and what does the linked project holds for enthusiasts? Let’s explore.
What is Spell Token?
The crypto is native to the abracadabra.money project, which also has another primary token titled Magic Internet Money or MIM. MIM is a stablecoin, pegged to the US dollar. Another stablecoin of the ecosystem is MIG, which is said to be pegged to gold.
The project allows users to borrow the MIM token and use the abracadabra.money ecosystem for yield farming and related activities. It claims that the collateral deposited to borrow the stablecoin MIM can also appreciate in value. One of the highlights of abracadabra.money is its ability to produce “stable yield”.
The Spell token is said to be the rewarding asset of the ecosystem. The token can also be staked, and it is paired with Ethereum’s ETH token.
Also read: CoinFLEX stops withdrawals: All you must know now
Spell Token price
The crypto’s 24-hour trading volume has climbed heavily, over 1,200%, as of writing. This has also lifted the price of the Spell token by 25%. The price per token stands at over US$0.001. It is listed on Binance and other exchanges.
Over the past almost six months of 2022, the Spell token has continuously lost value. It started the year at nearly US$0.025.
Why is Spell Token rising?
The token might only be gaining some of the ground it lost lately as the linked stablecoin MIM token’s peg was under stress. This triggered fears among abracadabra.money users. On previous occasions, yield farming protocols like Celsius Network have resorted to freezing withdrawals to manage such liquidity concerns.
In a late tweet, the abracadabra.money ecosystem addressed the concerns around MIM stablecoin, which seems to have dispelled fears. The tweet contained a link to a blog post on Medium, however, when clicked, it displayed an error.
Also read: 2 NFT cryptos to keep a tab on as eBay acquires KnownOrigin
Bottom line
The Spell token finds use within the abracadabra.money ecosystem, which also has the stablecoin MIM. Issues had cropped up with regard to this stablecoin, with reports of it unable to maintain its peg with the US dollar. However, abracadabra.money tweeted an explanation to clear the clouds, which could have resulted in boosting the price of the Spell token.
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