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Following the emergency fork in the wake of the FTX exchange breach, serum prices substantially quadrupled.

After an emergency fork in response to the FTX exchange attack, the price of serum tokens quadrupled.

Photo by Carlos Muza / Unsplash

After an emergency fork in response to the FTX exchange attack, the price of serum tokens quadrupled. Over the previous week, the price of serum increased from a low of $0.16 to a high of $0.32.

The breach

After receiving notifications that the FTX breach (1) may have compromised security, the community of the decentralized exchange protocol split the project.Serum (SRM), a decentralized exchange token with a Solana basis, was forked by its users. A fork suggests that programmers copied the underlying software code and began again, defending SRM holders from the attack on the FTX exchange on November 11.

The serum cost almost doubles to $0.30 with gains over night community of Solana forked the exchange to create Serum, a decentralized marketplace. SRM (2) price recovered from the massacre in the cryptocurrency market and than quadrupled from its weekly low of $0.16 to $0.30, yielding 38.6% in profits overnight. Despite the general devastation in the cryptocurrency market, the price of SRM tokens skyrocketed. The Serum community forked the token when the FTX exchange was hacked. The security of the token was no longer jeopardized after copying the underlying code and starting SRM from scratch. Owners of SRM gained confidence as a result of this action, which also helped the token of the decentralized exchange rise.

What happened next ?

Following the FTX exchange breach, the SRM price was among the largest cryptocurrency declines. On November 14, around 23:30 GMT, its price began to climb. As of this writing, SRM is trading at $0.30. The price of SRM is still $13.78, or 97.85%, behind its all-time high. According to a remark from Riyad Carey, an analyst with the crypto analysis company Kaiko Research (3): The Serum price increase was probably caused by the community coming together around a fork. If the fork takes off, it's uncertain how the SRM token will fare.

Kaiko's director of research, Clara Medalie, contends that since the crash, market makers have been accumulating support for SRM on Binance. Jupiter Aggregator, a crucial liquidity aggregator for Solana's DeFi ecosystem, declared that it is testing an integration with the latest version of SRM and will make the announcement soon once it is prepared. To boost the price, market makers are transferring money to Binance. On almost every other exchange, liquidity disappeared. Solana co-founder Anatoly Yakovenko claimed that many protocols rely on Serum markets for liquidity. The DeFi ecosystem depends on the update to Serum.