According to Santiment, SPELL is at risk if this happens to Bitcoin

While things settle down after a scandal that shook the decentralized finance world, things remain the same for a “magic” altcoin caught in a tug-of-war between the two.

Earlier this week, a self-proclaimed “on-chain detective” claimed that the chief financial officer of crypto protocol collective Frog Nation is Michael Patryn.

Patryn is a former co-founder of the now-defunct exchange QuadrigaCX, which reportedly stole $169 million in investor funds.

Anonymous zachxbt Twitter user said:

“0xSifu – QuadrigaCX co-founder Michael Patryn. If you don’t know, it was the Canadian Stock Exchange that collapsed in 2019 after founder Gerald Cotten disappeared with $169 million.

Prior to Quadriga, Michael helped run an identity theft ring called the Shadowcrew, which he later perpetrated under the former name of Omar Dhanani.

Cryptocurrency analysis company Santiment notice that the collective funds of Frog Nation are currently valued in the nine-digit range.

“Frog Nation is a group of projects working together to advance DeFi and the crypto industry at large.

Currently the group consists of Abracadabra.money, Popsicle.finance, Wonderland.money and the newest member Sushi.com.

With all the bad news about Frog Nation, it’s no surprise that all related projects are in the red (and worse, now that we’re in a downtrend).

Santiment also mentions how Spell Token (SPELL) is affected. SPELL is an Ethereum-based token that powers the Abracadabra.money platform, where users deposit cryptocurrency with interest to mint the Magic Internet Money (MIM) stablecoin.

The analytics company said:

“Given the massive volume we’re seeing, it seems like every SPELL holder is trying to sell like it’s hot.”

Source: Santiment

Despite the selling pressure, Santiment believes SPELL can weather the storm as long as crypto king Bitcoin maintains current prices.

“SPELL’s 7-day MVRV (7-day market cap/real cap) measures the short-term profit/loss for holders and shows that the price is still safe from the danger zone as all short-term holders are cash at this point lose. At this point, that might give us some wiggle room before risk increases significantly.

So if BTC keeps shedding, SPELL is very unlikely to hold its position.”

Source: Santiment

Santiment in the near future said in a tweet that Frog Nation is considering ousting Patryn.

“Given the pressure of the past few days, Daniele Sesta (the brainchild of Frog Nation) has launched a poll on whether 0xSifu should be removed. Currently 85% want to replace Sifu and almost 15% support keeping Sifu.”

Spell Token’s price has steadily declined this week, from Tuesday’s high of $0.0094 to its current valuation of $0.0078, but is up nearly 35% in the past 24 hours.

SPELL/USDT | Source: Trade View

Bitcoin is up slightly on the day, trading at $38,079.

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