Serum token in danger of extinction
Due to the problems caused by the collapse of FTX, the developers of the DeFi-platform have asked holders of the coin whether to continue using it for discounts or no longer use it at all
The Serum cryptoproject team suggested discontinuing the SRM token due to the aftermath of the collapse of the FTX exchange and its associated company Alameda. The future of the token is uncertain, the developers wrote on Twitter (the social network is blocked in Russia), and invited the community to discuss the further fate of SRM: to use the coin for discounts or not to use at all. Previously, the token allowed owners to receive discounts of up to 50% on trade fees.
In 2020, FTX and Alameda Research, now in bankruptcy, created the Serum Foundation and launched Serum, a high-speed decentralized platform on the Solana blockchain. Alameda provided liquidity for the DEX platform, while FTX held a significant portion of its assets in the SRM project's native token.
Prior to the bankruptcy filing, Sam Bankman-Frieda Exchange held $2.2 billion in SRM tokens. After FTX's troubles became known, the coin dropped 73% from $0.73 to $0.24 and many token holders rushed to get rid of them.
The collapse of the exchange also led to the fact that the program Serum stopped working on the main network. Because the authority to update the platform belonged to FTX, protocols such as Jupiter Exchange and Raydium Protocol refused to work with the DeFi-Platform for security reasons. At the same time, Serum community didn't give up and plans to support the project's fork (parallel version) - the Openbook platform, working in the main Solana network.
On November 28, cryptocurrency exchange Binance stopped spot trading in 16 cryptocurrency pairs, including three pairs with Serum token: SRM/BNB, SRM/BTC and SRM/USDT.