As things calm down after a wild scandal that shook the decentralized finance (DeFi) world, questions remain for an altcoin. Cryptocoin.com, we convey the details…
The former founder of the collapsed stock market came to the fore with his new project
Earlier this week, the Twitter account “zachxbt,” which describes itself as an “on-chain detective,” claimed Michael Patryn is the chief financial officer of crypto protocol collective Frog Nation. So, who is Patryn? Patryn is the former co-founder of the now-defunct cryptocurrency exchange QuadrigaCX, which lost $169 million in investments from investors. Cryptocurrency data firm Santiment explains the gravity of the situation by stating that the treasury of the Frog Nation collective is currently highly valued:
Frog Nation is a community of projects working together to advance DeFi and the overall crypto industry. Currently Abracadabra. money, Popsicle. finance, Wonderland. money and its latest member, Sushi.com consists of. With all the negativity around Frog Nation, it’s no surprise that all related projects are in the red.
Santiment warns specifically for this altcoin
Santiment focuses specifically on how the Spell Token (SPELL) in the ecosystem is affected. SPELL is Abracadabra, where users deposit interest-bearing crypto assets to mint the Magic Internet Money (MIM) stablecoin. It is a token that manages the money platform. Despite the sell-side pressure, Santiment thinks SPELL can survive the storm as long as BTC holds its current price levels. Santiment uses the following expressions:
Given the large amount of volume we’re seeing, it certainly seems like every SPELL holder is trying to bring the coin down. SPELL’s tool that measures short-term owners’ profit/loss shows that we are still in the confidence zone as all short-term owners are at a loss. It might leave us some room to go before the risk escalates significantly. However, if BTC continues to drop, SPELL is unlikely to take its place.
Santiment says in a tweet that Frog Nation is weighing the possibility of removing the embattled Patryn from the project. Daniele Sesta, the name behind Frog Nation, conducted a survey on whether 0xSifu should be removed from the project. Meanwhile, Spell Token is changing hands at $0.0080.
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