SPELL, the reward token for the decentralised finance (DeFi) protocol Abracadabra.money, is native to multiple blockchains: Primarily Ethereum, but also Avalanche, Fantom and Arbitrum. This article will introduce Spell token price prediction. Is spell token going to go up? Please read on.
Introduction
So, what is Spell Token (SPELL)? To fully understand what Spell Token is, and its uses, let us have a look at how Abracadabra.money works.
As a decentralised finance (DeFi) platform, Abracadabra.money allows users to deposit interest-bearing tokens (ibTKNS) as collateral to borrow the USD-pegged MIM stablecoin. Interest is dependent on which asset the user has collateralised.
SPELL tokenomics
After the token-generation event in May 2021, half of all SPELL was burned, thus reducing the supply from 420 billion to 210 billion. A further burn of 5.25 billion tokens was agreed in January 2022. In total, the current maximum supply is a touch over 196 billion, out of the original 420 billion. Note that these burns targeted non-circulating tokens, and so did not positively affect trading value.
The current circulation figure is 97.61 billion. Circulation increases weekly by a rate of 911.5 million tokens. This figure is subject to change, contingent on governance proposals.
In terms of distribution, 7% was made public in an initial DEX offering (IDO) in May 2021, while 63% is kept for ROI incentives, this being the primary purpose of the token. Rewards are halved each year as a deflationary measure. The remaining 30% is reserved by the team, vested over a four-year period.
SPELL is currently valued at $0.001626 as of 16 August 2022, with a market capitalisation of $159m and standing at number 165 in the charts. In a recent 24-hour trading window, the token witnessed a 15% increase in the price of one token, and a 634% increase in trading volume.
Recent price action
Despite hyping the burning of 5.25 billion SPELL on 3 January this year, the token entered a sustained period of downward momentum thereafter, falling from $0.024 to $0.0045 by 21 February 2022, a drop of more than 80%. SPELL saw an all-time high of $0.075 on 16 November 2021, but has fallen further by roughly 95% from the previous all-time high to its current value.
The crypto market as a whole entered a decline in the latter stages of 2021 and throughout Q1 and Q2 2022, making downtrends inevitable. In addition to multiple market crashes, the cryptocurrency halved in value in the 30 days between mid-March and mid-June this year, which is likely to be a cause for concern for any potential investors.
However, as of 16 August 2022 the token is trading at $0.001626, up over 15% in a recent 24-hour trading window.
Spelling out a scandal
As reported by CoinDesk, it was recently discovered that ‘0xSifu’, one of the developers of the Wonderland money market, is the alias of Michael Patryn, a convicted fraudster and co-founder of failed Canadian exchange QuadrigaCX.
What does that have to do with Abracadabra.money? Daniele Sestagalli, creator of the SPELL token, was also a co-developer on Wonderland alongside Patryn.
It is important to note that Sestagalli himself has not been accused of anything, and the true extent of his association with Patryn is unclear. But that did not stop a raft of negative press across major news publications, which may have resulted in negative investor sentiment.
In a Twitter thread, Sestagalli said: “I want everyone to know that I was aware of this, and decided that the past of an individual doesn’t determine their future… As I fight for him I will fight for anyone else that has proven to me to be a good actor despite the past.”
Spell token price prediction: Is spell token going to go up?
Despite the consistent drop in value since November, Spell Token price prediction coverage does include some positive targets.
DigitalCoinPrice’s Spell Token price prediction gives price targets of $0.00215 for 2022, $0.00323 for 2025 and $0.00753 for 2030.
For a Spell Token price prediction for 2030, TechNewsLeader’s target is $0.039. PricePrediction’s 2030 target is around $0.028, with a Spell Token price prediction for 2025 of $0.004.
However, in WalletInvestor’s Spell price prediction, the digital forecaster suggests a value of less than $0.000283 over 12 months, a decrease of roughly 82%. The site states the token is “a bad long-term (one-year) investment”, and does not forecast any significant recovery.
Gov Capital has a similar Spell Token price prediction for 2022. The site forecasts the coin will be worth nothing within 12 months.
Be aware that these forecasters are automated services, and while they are useful as a guide, a thorough due diligence exercise should take into account many other factors. Be sure to read the whitepaper, look at the social media channels, consult independent advisors and make a personal assessment of the viability of the project if you are considering an investment.
Hope this article can provide you with a further understanding about Spell token price prediction.
