A new crypto asset is taking the cryptoverse by storm after surging 1,880% on launch day.
Serum (SRM), a new cryptocurrency that will act as both the utility and governance token of the soon-to-be-launched decentralized derivatives exchange Serum, jumped from $0.10 to as high as $1.98 after launching, according to CoinGecko. At time of writing, the crypto token is trading at $1.86.
Project Serum bills itself as the antidote to the many weaknesses that plague decentralized finance (DeFi) protocols including the lack of liquidity, slow processing speed, and inability to facilitate cross-chain transactions.
The project has quickly gained a lot of attention thanks to its leader Sam Bankman-Fried, founder of cryptocurrency derivatives exchange FTX and Alameda Research. He says the decentralized exchange will give users the experience they’re used to enjoying on centralized exchanges.
“Serum is fast, and it’s cheap, and powerful, and fully cross-chain compatible. And it’s truly, fully trustless.
Serum is built on the Solana blockchain. Solana can process 10,000 times as much as Ethereum; and it’s 1,000,000 times cheaper. And unlike many side chains, Solana is a fully fledged, decentralized blockchain with over 100 validators.
This allows Serum to have full central order limit books, with the familiar market, limit, and IOC orders; processing multiple times per second; all while being fully on chain. This is then combined with a powerful cross-chain protocol allowing for trustless and efficient tokenization and swaps, meaning that while living natively on Solana, Serum is interoperable on Ethereum.”
SRM holders will get discounts on trading fees and can be staked to power the protocol.
Bankman-Fried says the Serum exchange will launch in the coming weeks.