Binance Removes Trading Pairs for Serum Token on Solana-Based Exchange
Binance’s decision follows a month of severe unpredictability for Serum as a result of its ties to the bankrupt FTX and its founder.
Binance has decided to ban a number of trading pairs for the SRM token, including those against the Binance exchange token (BNB), Bitcoin (BTC), and Tether’s stablecoin (USDT).
Serum is the governance token for the decentralized Solana-based exchange supported in August 2020 by FTX and Alameda Research.
Since FTX’s huge collapse, Project Serum has been plagued by confusion; despite being touted as decentralized, some prominent developers, like Max Schneider, the co-founder of cryptocurrency exchange Mango Markets, speculated that someone at FTX may have controlled keys to the exchange.
Anatoly Yakovenko, the founder of Solana, stated on Twitter that the developers that rely on Serum are forking the program because the upgrade key to the current version has been compromised.
The disappearance of $400 million in FTX funds prompted many DeFi apps and developers, including NFT marketplace Magic Eden, to cut off access to the Serum project.
Some people have said that an insider did the hacking, which has led to more questions about how safe the Serum platform will be in the future. The authorities in the Bahamas also said that at least some of the funds were moved by them.
“[There is] credible evidence that the Bahamian government is responsible for directing unauthorized access to the Debtors’ systems for the purpose of obtaining digital assets of the Debtors,” wrote the newly-appointed CEO responsible for FTX’s bankruptcy proceedings John Ray.
Another Solana-based DEX aggregator exchange, Jupiter, told its users that it would stop using Serum’s liquidity “due to security concerns about upgrade authorities” and urged all of its integrators “to do the same.”
After that, many of Serum’s most important developers turned their attention to OpenBook, which is a “hard fork” of Serum that is run by the community.
This kind of uncertainty seems to have made people guess a lot about how much SRM tokens are worth.
After the new “hard fork” was confirmed on November 15, the price of SRM tokens shot up from $0.18758 to $0.300908 in just 24 hours, according to data from CoinGecko.
Even though people have been trying to save the project for a year, the value of SRM tokens has dropped by 97.9% from their all-time high in September 2021 to just $0.282431 as of this writing.
This isn’t the first time in the last month that Binance has made it hard to trade Solana tokens.
It said earlier this month that it would temporarily stop accepting deposits of the stablecoins USDC and USDT on the Solana blockchain “until further notice,” but that deposits of USDC would be allowed again later.
The post Binance Removes Trading Pairs for Serum Token on Solana-Based Exchange appeared first on NFT News Pro.
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