Serum price nearly doubled post the emergency fork in the aftermath of FTX exchange hack
|- Serum tokens price doubled after an emergency fork in the wake of FTX exchange hack.
- Serum price hit a peak of $0.32 from a low of $0.16 over the past week.
- The community of the decentralized exchange protocol forked the project after warnings that security may have been compromised in the FTX hack.
Solana-based decentralized exchange token, Serum (SRM), was forked by its community. A fork implies that developers copied the underlying software code and started afresh, protecting SRM holders from the November 11 attack on FTX exchange.
Also read: Crypto lender BlockFi prepares for potential bankruptcy in the aftermath of FTX collapse
Serum price nearly doubles, hits $0.30 with overnight gains
Serum, a decentralized exchange built on Solana, was forked by its community. SRM price nearly doubled from its weekly low of $0.16 to $0.30, recovering from the crypto market bloodbath and yielded 38.6% in gains overnight.
SRMUSDT 1-hour price chart
SRM tokens price soared despite the market-wide bloodbath in the crypto market. Following the FTX exchange hack, the Serum community forked the token. After copying the underlying code and starting SRM afresh, the token’s security was no longer compromised. This move instilled confidence among SRM holders and fueled a rally in the decentralized exchange’s token.
SRM price was among the biggest losers in cryptocurrencies after the FTX exchange hack. Its price started soaring around 23:30 GMT on November 14, As of press time, SRM is exchanging hands at $0.30.
SRM price is still 97.85% below its all-time high of $13.78. Riyad Carey, an analyst at crypto analysis firm Kaiko Research, was quoted as saying:
[The Serum price jump was likely due to the community] rallying behind a fork. It's unclear how the SRM token would fare if the fork gains traction.
Clara Medalie, director of research at Kaiko, argues that market makers are building up support on Binance for SRM since the crash. Jupiter Aggregator, a key liquidity aggregator for Solana’s DeFi ecosystem, announced that it is testing an integration of the new version of SRM and will announce it as soon as it's ready.
Medalie told CoinDesk:
Market makers are moving funds to Binance to support price. Liquidity evaporated on nearly every other exchange.
Anatoly Yakovenko, co-founder of Solana argued that a ton of protocols depend on Serum markets for liquidity. The upgrade to Serum is key to the DeFi ecosystem.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.