Timeline of the Decline
November 2021
$0.031
All-Time High - Peak euphoria
January 2022
$0.015
0xSifu scandal affects Abracadabra
March 2022
$0.002
UST integration backfires during depeg
Current
$0.0005
Post-collapse trading
What Went Wrong
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0xSifu Connection
Daniele Sestagalli, founder of Abracadabra (SPELL), worked closely with 0xSifu at Wonderland, tainting the project by association.
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MIM Depeg Concerns
Magic Internet Money (MIM) was backed by volatile collateral including UST. When UST crashed, MIM faced solvency questions.
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Cascading Liquidations
The cauldron system created cascading liquidation risks that amplified losses during market downturns.