Want to jump straight to the answer? You can buy Spell Token on Gemini!
Some of the main benefits that decentralized apps (DApps) have brought to the table are lending and borrowing platforms like Aave, Alchemix, Abracadabra Money and others. These decentralized finance (DeFi) platforms allow anyone anywhere to lend and borrow certain digital assets with an Ethereum wallet. Thanks to blockchain technology, we have these trustless and secure financial services.
What is Spell Token?
Abracadabra Money is a cross-chain lending platform that utilizes ERC-20 interest-bearing tokens (ibTKNs) like yvWETH, yvUSDC and xSUSHI to accumulate interest. These tokens are used as collateral to obtain Magic Internet Money (MIM), a United States dollar-pegged stablecoin like Tether (USDT) or USD Coin (USDC). With Abracadabra Money, the magic is pretty straightforward: collateral in — ABRACADABRA — stablecoin out.
Now, here is where SPELL comes into play. Spell is Abracadabra’s native token used for staking, liquidity mining and governance. Abracadabra Money users can provide SPELL or MIM to liquidity pools and earn a share of transaction fees. Since this is a completely decentralized platform, your share of Spell Token will show how much impact your vote might have in future decisions like liquidation fees, total value locked (TVL) or even changing features of the platform.
When users stake SPELL, they will earn Staked Spell (sSPELL), utilized for fee sharing and governance. Furthermore, staking SPELL for interest will create a passive income stream from transaction fees from the platform.
Brief History of Spell Token
Abracadabra Money protocol was launched in May 2021, thanks to the Kashi lending technology by SushiSwap, the platform and its tokens MIM and SPELL have been redefining the DeFi industry. According to the list provided by CoinMarketCap, Spell Token’s creators are:
- Poolpi – yearn.finance (YFI)
- Leo Cheng – Cream Finance (CREAM)
- Michael – Curve DAO Token (CRV)
- Julien – Stake DAO (SDT)
- C2tp – Convex Finance (CVX)
- Sifu – Wonderland (TIME)
- Georgiy – Abracadabra and Popsicle Finance (ICE)
- 0xmerlin – Abracadabra
- Danielesesta – Abracadabra, TIME and ICE
- Squirrel – Abracadabra and ICE
Spell Token was originally distributed half on Uniswap v3 and half on SushiSwap as an initial DEX offering (IDO) on May 27, 2021. Its total supply was 420 billion tokens of which half of them were burned in a token burning event publicly announced on Twitter, leaving 210 billion tokens.
According to Abracadabra, 63% (132.3 billion) of Spell Token will be distributed as global farming incentives, 30% (63 billion) will be allocated to the team and 7% (14.7 billion) in the IDO phase. From the 63 billion tokens allocated for the team, 50% will be streamed over the first year, 25% over the second and 12.5% will be distributed over the third and fourth years each.
SPELL is currently being traded at $0.021 at the time of writing. It hit an all-time high of $0.07515 on Nov. 16 and an all-time low of $0.0005916 on Aug. 18, according to the data provided by CoinMarketCap.
How to Buy Spell Token
Spell Token is listed on some of the notable crypto exchanges such as Binance and Gemini. Each of these platforms has a different kind of registration and Know Your Customer (KYC) regulations. Purchasing a token is not difficult and we will show you in 3 easy steps.
- Open an online account.
First, you need to create an account on one of these exchanges that support the Spell Token. For U.S customers, Gemini Exchange is the best place to invest in Spell Token. Next, you’ll need to provide your email address, phone number and relevant KYC information to verify your identity.
- Buy a wallet (optional).
Wallets are divided into two categories. A hot wallet, also known as a software wallet, will let you transfer your digital assets at almost any time. A cold wallet, also known as a hardware wallet, isn’t connected to the internet because it is typically disconnected hardware with a lower threat of being compromised.
However, some cryptocurrency exchanges come with built-in wallets, so you will not need another one. - Make your purchase.
You may simply make a purchase with a credit/debit card or a direct bank transfer after creating a hot wallet or purchasing a cold wallet that supports Spell Token. This is primarily determined by the type of wallet and your jurisdiction.
You might have a general idea of where the Spell Token is heading with its utilities. Do you think SPELL could change the game for borrowing and lending stablecoins and protocols?
Best Crypto Wallets For Spell Token
Best Hardware Wallet: Ledger
When it comes to storing crypto, you might have a wide list to choose from, but Ledger Nano S could be one of the best choices you can make. This crypto wallet supports more than 200 digital assets, Spell Token being only one of them.
Ledger Nano S can be a bit pricey choice for some, but it’s very well-rounded with all the security and convenience that it brings. It can be purchased for $59 with the Ledger Nano X model being priced at $119.
Best Software Wallet: Coinbase
Coinbase is one of the most popular names in the blockchain ecosystem with more than ten years of experience in the industry. It supports many ERC-20 tokens along with Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ether (ETH), Ethereum Classic (ETC), Ripple (XRP), Stellar (XLM) and Dogecoin (DOGE), among others.
Coinbase’s network and variable fees might not be liked by many but in exchange for the security, support and convenience, it is a fair bargain.
Users can easily download it and create an account in a matter of seconds with their phone numbers.
Trade, Sell or Convert your Spell Token
First, you need to connect your wallet to an exchange or use an exchange with a built-in wallet, such as Gemini, for example. To trade your Spell Token, you need to find a trading pair such as SPELL/ETH for buying or ETH/SPELL for selling.
Trading usually comes with higher fees, depending on the wallet and exchange. Converting tokens, however, could be much cheaper or sometimes even free. To convert your Spell Token on an exchange, you just need to select which token do want to be converted SPELL or vice-versa.
Current Crypto Prices
Here is a list of the hottest crypto in the market with the most recent prices. Cryptocurrency prices are below their all-time highs, presenting a buy opportunity for investors that are bullish on the digital asset class.
Is Spell Token a Good Investment?
We hope that after reading this useful information on Abracadabra Money, the SPELL token and its MIM decentralized stablecoin, you will be well-informed about the Abracadabra protocol and understand how to use its capital efficiency to achieve big returns. DeFi fixes many problems that come with centralized finance like legal problems for example, which give decentralized projects like Abracadabra Money a huge chance to show what they are capable of doing.
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