Cryptocurrencies appear to have pared some losses over the weekend. Unlike the stock exchange, the global crypto market even works on Saturdays and Sundays.
At the time of writing, Bitcoin, the market’s main asset, is holding its ground above $21,000. But one crypto that has gained more ground than most is the Spell Token, or simply Spell. What drives the price of the Spell crypto up and what does the linked project have in store for enthusiasts? let’s explore
What is a magic token?
The crypto comes from 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 in the ecosystem is MIG, which is said to be gold-pegged.
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 pledged to borrow the MIM stablecoin may also appreciate in value. One of the highlights of abracadabra.money is its ability to generate “steady returns”.
The spell token is supposed to be the worthwhile commodity of the ecosystem. The token can also be stacked and is paired with Ethereum’s ETH token.
also read: CoinFLEX stops withdrawals: everything you need to know now
Price of the magic token
The crypto’s 24-hour trading volume is up sharply by over 1,200% at the time of writing. This also increased the price of the spell token by 25%. The price per token is over $0.001. It is listed on Binance and other exchanges.
In the last almost six months of 2022, the spell token has continuously lost value. It started the year at almost $0.025.
Why is Spell Token rising?
The token might just gain some of the ground it has lost lately as the pegging of the linked stablecoin MIM token has been under stress. This sparked fears among abracadabra.money users. On previous occasions, yield farming protocols like Celsius Network have resorted to freezing payouts to deal with such liquidity issues.
In a late tweet, the abracadabra.money ecosystem addressed concerns surrounding the MIM stablecoin, which seems to have allayed fears. The tweet contained a link to a blog post on Medium, but displayed an error when clicked.
also read: 2 NFT Cryptos to Watch When eBay Acquires KnownOrigin
bottom line
The spell token is used within the abracadabra.money ecosystem, which also has the stablecoin MIM. Issues had emerged regarding this stablecoin and it was reported that it was unable to maintain its peg to the US dollar. However, Abracadabra.money tweeted a statement to clear the clouds, which could have resulted in an increase in the price of the spell token.
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