- Trading of Serum tokens will be allowed on Binance until November 28.
- Jupiter also told its customers that it would be suspending its usage of Serum’s liquidity.
In a recent announcement, Binance said that it will no longer support trading pairings involving the SRM token issued by Serum including against the Binance exchange token (BNB), Bitcoin (BTC), and Tether’s stablecoin (USDT). Serum is the token used for governance on the decentralized Solana-based exchange backed by FTX and Alameda Research in August 2020. Trading of Serum tokens will be allowed on Binance until November 28.
Despite being advertised as decentralized, several prominent developers, including Max Schneider, the co-founder of cryptocurrency exchange Mango Markets, believe that someone at FTX may have held keys to the exchange. This has cast a pall of doubt over Project Serum.
Serum Pays the Price
Solana founder Anatoly Yakovenko said on Twitter that “the devs that depend on Serum are forking the program because the upgrade key to the current one is compromised.” The loss of $400 million from FTX caused widespread panic, and as a result, numerous DeFi applications and developers turned off access to the Serum project, including NFT marketplace Magic Eden.
Speculation persists that the disappearance was the result of an insider hack, which raises serious concerns for the security of the Serum platform in the future. At least part of the monies were said to have been moved with the help of the Bahamas officials.
Solana-based DEX aggregator exchange Jupiter also told its customers that it would be suspending its usage of Serum’s liquidity “due to security concerns about upgrade authorities,” and it urged all of its integrators to “do the same.”
As a result, several of Serum’s most important developers began working on OpenBook, a community-driven “hard fork” of Serum. The token has dropped 20% in the last 24 hours as per CMC.
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