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Spell Token: Everything you need to know

Source: CoinMarketCap

It has been a really long time since the cryptocurrency industry was first introduced and honestly, the industry has had a wonderful journey so far by being able to lure in potential investors from all across the globe and managing to make a name for itself in the global marketplace. Not just that, as mentioned, the industry has had a surge in its overall growth and popularity recently, thus helping it to reach greater heights!

Having said that, I believe a majority of you are already familiar with the basics of the industry and I am sure that you are eagerly waiting for us to start with what we have with us today but, for some of you who are new to this whole thing, it’s best if we have a brief look at the industry first.

To begin with, cryptocurrencies as the name suggest are nothing but a form of online or virtual currencies that can easily be made use of for a variety of purposes including the purchase and sale of goods and services as well as for the purpose of trade and exchange over cryptocurrency exchanges available online.

In other words, crypto is a blockchain-based platform that is known to be decentralized to its very core. Being decentralized, the crypto world becomes more than capable of stepping outside the overall control and jurisdiction of central authorities and can work freely without any unnecessary government interferences as well.

Also, when the industry was first introduced there were not many currencies to choose from and honestly, not many people were looking to be a part of it either as people back then were very skeptical concerning the return on investments they could expect as well as the safety of their money too.

That is surely not the case anymore as today, we have pools of currencies available for investors to choose from, with newer ones coming in with each passing day and tons of new investors joining in every hour.

Source: CryptoHubK

Speaking of a lot of currencies available today in the marketplace, some of the most popular ones worth investing in includes Bitcoin, Cardano, Baby Doge, Ethereum, Dogecoin, Polkadot, and Binance Coin, PancakeSwap as well as EverGrow Coin to name just a few of course. In addition to this, it feels rather interesting seeing such a rapid growth of the industry over the past couple of years and so, let’s look at some of the major contributing factors responsible for this huge success including portability, high-profit margins, volatility, negligible response time, convince it offers, intuitive nature as well as ease of use of course.

Being volatile, it is important for you to be aware of the fact that, it is not always possible to predict the price changes and act accordingly as the price fluctuations in the crypto marketplace are almost immediate, thus leaving no time to plan. Therefore, whenever dealing in online currencies, keep in mind that, if the industry is providing you with an opportunity to earn huge profits and make quick money, if not done right, you could also end up having significantly huge losses as well.

Not just that, as per the chatter amongst some of the leading experts in the field, it has come to our notice that, crypto is rapidly progressing towards completely revolutionizing the global payment system and from where I stand, it looks like it has already started to do so as many merchants and businesses have started accepting crypto as an official mode of payment from their customers.

Now that you have a brief backstory about the crypto world, you will be able to have a much better understanding of what we have with us today, Spell Token. To know more, I suggest you read further!

Everything to know about Spell Token (SPELL)

Source: Arover

Spell token or as commonly referred to as SPELL is nothing but simply a reward token that is known to be associated with abracadabra.money, a leading platform that is said to make use of interest-bearing tokens as collateral in order to borrow a USD pegged stablecoin called Magic Internet Money (MIM).

In addition to this, in order to provide isolated leading markets which indeed allow users to adjust their risk tolerance as per the collateral they decide to use, Abracadabra uses the Kashi Lending Technology pioneered by SushiSwap (SUSHI). Not just that, users can easily deposit collateral and borrow MIM against it, while the company also offers yield farming opportunities, wherein users can stake their liquidity provider tokens (LP) to farm SPELL.

Now, this facilitates a much better liquidity for certain virtual currency pairs, currently Magic Internet Money (MIM) and LP 3pool Curve (3CRV) as well as Ether(ETH) and Spell Token (SPELL). Also, users are also allowed to open leveraged farming positions using borrowed MIM from their interest-bearing collateral of course.

Before moving any further, it is probably worth noting that, if you are wondering who are the founders of the said token? Let me tell you that, Abracadabra is not an official decentralized autonomous organization (DAO) but is instead said to be governed with the help of a Snapshot page.

As mentioned, SPELL is an Ethereum token that is known to govern Abracadabra.money, a platform that is known to allow users to easily deposit collateral in the form of interest-bearing cryptocurrency assets to mint MIM. Now, MIM is a stablecoin that tries to maintain a value of 1.00 US dollars.

Source: Shrimpy Academy

Furthermore, SPELL being the native utility token of the said platform can be used for a variety of purposes like being staked to earn a spell, which grants governance rights as well as other rewards. Having said that, all thanks to Kashi Lending Technology, which was introduced by the popular platform, SushiSwap, Abracadabra has been able to bring a wave of innovation in decentralized finance in its isolated lending markets.

Know that, in an isolated lending market, the risk is not known to be shared collectively. Other than this, all the users on the platform can easily provide liquidity for any token and if in case the currency pair loses its liquidity or something actually happens to the smart contract, only that pair is really affected and not the entire platform. Basically, this allows Abracadabra to be able to offer various pairs that are not really supported by most other decentralized exchanges (DEXs).

What actually makes the platform stand out from others in the marketplace is that users with the help of this technology can leverage their interest-bearing token positions. What happens is that users borrow against their positions and then again borrow against the borrowed stablecoin, thus creating multiple loops and thus increasing their leverage.

Also, all of this is said to be done in one transaction, which is the reason why the users only pay a gas fee once. Lastly, the Spell Token can be farmed by providing liquidity in one of the different pools. As talked about earlier, SPELL can also be staked and those staked tokens accrue a share of the platform fees, which auto compound.

Now that we have talked much about Spell Token, some of you must be wondering, whether or not it is a good idea to invest in the platform? If that’s the case, then let’s find out, shall we?

Investing in Spell Token (SPELL)

Source: YouTube

As of today, the price of Spell Token is about 0.001060 US dollars with a twenty-four-hour trading volume of 142,806,740 dollars. Not just that, in just the past twenty-four hours, the value of the Spell Token has gone up by 28.41 percent, and with the current market cap of the token being 99,661,433 US dollars, SPELL is currently placed at the #188 position as per the CoinMarketCap rankings.

Also, it is worth mentioning that, the current circulating supply of Spell Token is nearly 94,023,424,834 SPELL coins with a maximum lifetime supply of about 196,0008,739,620 SPELL coins. In just the past week alone, the price of the platform has gone uphill by 44.27 percent.

Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in Spell Token is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that Spell Token can prove to be a risky investment in the near future, which is likely to provide you with fewer returns and it is a possibility that your current investment may decrease in value. But again, nothing can be said for sure!

Source: Nomics

As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is very important for you to understand the fact that just like any other currency in the crypto marketplace, Spell Token does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy Spell Token? Let me help you with that. Currently, Spell Token is available on all major crypto exchanges but, some of the popular exchanges that have SPELL listed on them include Binance, Bybit, MEXC, and OKX as well as Bitget to name a few.  

In conclusion, what are your thoughts on Spell Token? Do let us know in the comments area below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read:  The Sandbox: Everything you need to know

 

 

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