What is Serum (SRM)?

Serum (SRM) is a decentralized cryptocurrency exchange that runs on the Solana blockchain, a network that promises immense scalability. This crypto exchange is also very fast since Solana can perform around 50,000 transactions per second. Serum is a decentralized finance (DeFi) solution that allows people to trade without needing a central website.

The utility token of this crypto exchange is also called the Serum or SRM. The SRM is an ERC-20-based utility token, making it compatible with other Ethereum-based tokens.

Another unique feature of the Serum (SRM) token is its 1-million token denomination, the MegaSerum (MSRM). Owners of the SRM token can convert their funds to MegaSerum, and owners of MegaSerum can do the same. Individuals who own the MSRM enjoy special governing privileges on the network.

Who Created Serum (SRM)?

Sam Bankman-Fried created the Serum exchange and the team behind it. Sam once worked as Jane Street Capital’s financial investor and an investment banker on Wall Street.

He left these jobs to establish Alameda Research in 2017. Alameda Research is a crypto trading firm that manages digital assets and provides liquidity for investors and regular individuals.

Sam and his new company, Alameda Research, joined hands to establish FTX, a powerful platform for crypto derivatives.

How Does Serum (SRM) Work?

Serum (SRM) aims to revitalize the crypto exchange scene by providing an upgrade to the popular order book mechanism. Their upgrade would automate the process just like Automatic Market Makers (AMM).

Unlike the AMM, their solution would allow investors to retain complete control over their funds. This means that investors can choose the price to sell their funds and the size they wish to sell.

It also offers a cross-chain swap feature, allowing investors to trade with coins that exist on other blockchains. The cross-chain swap requires the involved parties to deposit a part of their funds as Ethereum collateral. After which, both parties can exchange the tokens they wish to exchange before retrieving their collateral.

Interested investors can choose to stake their SRM tokens to earn the right to validate cross-chain settlements. The minimum stake of SRM is 10 million SRM.

Although Serum is a crypto exchange, it isn’t like other exchanges that run on an actual website. This means there’s no loophole for hackers to steal customer information or funds. It keeps transaction fees low because there is no central structure and authority to reject any transaction.

Is Serum (SRM) A Good Investment?

Serum (SRM) is a decentralized exchange (DEX) that combines a matching engine and a limit order book. In an era where DeFi applications are in high demand, most DeFi exchanges cannot handle the crowd. This leads to slow transaction speeds and high transaction fees, errors that this network aims to fix.

Like other crypto tokens, investors can trade or invest their SRM for future purposes. From the indication of things, this is a solution many DeFi users have been waiting for. Since DeFi can only grow in the future, Serum (SRM) is a worthy long-term investment.

Serum tokens are available for purchase on Binance and Kraken. Storage of this coin is available on the Binance online wallet and the Ledger Nano X hardware wallet.