Abracadabra’s SPELL token crashed last week when it was revealed that Sifu, the CFO of its proposed merger project Wonderland, was hiding a dark secret.
The Magic Isn’t Over Just Yet
Stablecoin project Abracadabra is recovering after one of the most bruising weeks in DeFi.
Problems arose on January 27, when Wonderland’s Chief Financial Officer, who was operating under the pseudonym of 0xSifu (or simply Sifu), was revealed to be Michael Patryn.
Patryn is the former co-Founder of the disgraced exchange QuadrigaCX, which lost $190 million of user funds in 2019. Patryn has also been linked to a host of criminal activities, including ponzi schemes, identity theft, and credit card fraud.
While Wonderland and Abracadabra are ostensibly separate endeavors, the two are linked through the ‘Frog Natio,’ a conglomeration of individual projects which share team members. Frog Nation includes Wonderland, Abracadabra, and Popsicle and also shares ties to Sushiswap.
Just one day prior to the revelation that Wonderland’s near $1 billion Treasury was being run by a known and repeated fraudster, chief developer Deniele Sestagalli tabled a suggestion that Wonderland and Abracadabra should merge.
Following the news that Wonderland’s CFO was a convicted criminal, Sestagalli was keen to downplay any link between the two.
“[Abracadabra] is an indipendent [sic] actor and $MIM has shown to be reliable and stable in all market situations,” said a Sestagalli tweet on January 27. “Who is Fudding $MIM is doing it for their own gains.”
Abracadabra is a dual-token ecosystem. MIM is the project stablecoin, which can be acquired by locking interest-bearing assets such as yvYFI, yvUSDT, yvUSDC, and xSUSHI. SPELL is the governance and incentive token for the project.
Frog Nation projects at a glance
Wonderland: Financial tools to grow your wealth – stake and earn compounding interest.
Abracadabra: abracadabra.money is a spell book that allows users to produce magic internet money.
Popsicle: Popsicle finance is a multichain yield optimization platform for liquidity providers. Turn on our auto-pilot, relax, and boost your yield.
Token Crashes, but Partially Recovers
After the revelation that Wonderland funds were being controlled by a con artist, price volatility set in across the Frog Nation. The price of Abracadabra’s SPELL token fell from $0.0077 on Thursday to $0.0049 on Friday.
By Sunday, however, the token bounced back, temporarily trading for $0.0082 before settling to $0.0068 today.
With the dust beginning to settle, Abracadabra has issued a statement to reassure its users further.
“0xSifu was never, at any time, directly or indirectly managing the Abracadabra Treasury,” said the Abracadabra blog on Sunday. “The SPELL treasury, which consists of all the unminted SPELL tokens have never been used to send funds to sifu.eth, and all of the transactions have been created and executed by our co-founders, Danielesesta and 0xMerlin as a part of a 2/2 multisign.”
Nonetheless, the project did confirm that 0xSifu had been one of 10 possible signatories on the $MIM stablecoin wallet. Abracadabra states that to open this wallet requires a minimum of six signatories.
What now?
A community vote has now removed 0xSifu as CFO of Wonderland and he will apparently play no further role in the project moving forwards. There are still further questions about the Frog Nation ecosystem.
Perhaps the biggest question is regarding Deniele Sestagalli’s judgement, who apparently knew about Patryn’s chequered past for some time.
While Sestagalli remains in charge of other Frog Nation projects he is undoubtedly damaged by the affair. One of Sestagalli’s ambitions was a takeover bid for SushiSwap, bringing the exchange into the ‘Frog Nation’ fold.
The developer has now stood down from SushiSwap and will no longer be involved in the exchange moving forward. Meanwhile, Wonderland will be wound down and the treasury returned to its users.
Abracadabra and Popsicle finance intend to continue their operations.
What is Abracadabra?
Abracadabra.magic is a magical cryptocurrency spellbook that enables its users to produce Magic Internet Money (MIM) token, which is a stablecoin that can be swapped for any of the other traditional stablecoins. Users, i.e., the spellcasters, can provide collateral in the form of various interest-bearing crypto tokens like yvYFI, yvUSDT, yvUSDC, xSUSHI, and more.
Find more about Abracadabra here:
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.
BSC NEWS is a private news network. All posts posted by this user belong 100% to bsc.news All rights are reserved to BSC NEWS for more information about BSC NEWS contact BSC NEWS HERE.
