After the abrupt collapse of the cryptocurrency exchange industry’s largest player, Serum, a decentralised crypto exchange funded by FTX, informed its 215,000 Twitter followers that the project was dead and directed users to a community-led fork of the project.
The security of Serum’s code was reportedly compromised when the now-bankrupt FTX exchange was hacked for more than $400 million earlier this month. According to Serum, the FTX exchange possessed exclusive update power over its code.
What does this mean for Serum?
Unfortunately, with Openbook’s existence Serum’s volume and liquidity has dropped to near-zero. Users and protocols are safe using an alternative fork such as Openbook, after finding out security risks on the old Serum code.
— Serum (@ProjectSerum) November 29, 2022
The team discussed its native Serum (SRM) coin, claiming that its use has been requested to be discontinued owing to exposure to FTX and its sibling trading firm Alameda Research and its uncertain future.
In addition, OpenBook processes a daily volume of over $1 million, whereas Serum’s volume and liquidity have already decreased to almost nothing, according to Serum.
Since Openbook has been around, Serum’s volume and liquidity have almost completely disappeared. The researchers discovered security flaws in the original Serum code, but users and protocols are secure using an alternative fork like OpenBook.
Serum’s code could not be securely updated to address any vulnerabilities once the attack came to light. Anatoly Yakovenko, a co-founder of Solana, and other programmers proposed forking its code in response. Mango Max, also the developer at the loan project Mango Markets, was in charge of the fork.