Is Another Fundraising Frenzy Coming? Binance Lists Serum (SRM) for Lightning Trading, Surging Over Tenfold Overnight

The recently launched decentralized exchange Serum, led by market maker Alameda and exchange FTX, reached a climax yesterday evening at 9:30 p.m. In addition to FTX's pre-announcement of listing for trading on the 11th evening, the exchange platform Binance also suddenly announced its listing, trading simultaneously with FTX in the evening.

The Serum token SRM, which had an initial exchange offering (IEO) price capped at $0.11, saw its highest trading price reach $5, maintaining between $1.2 to $1.5 in the first few hours after opening. By the morning of the 12th, it had risen steadily to the $1.8 to $1.9 level, allowing participants in the IEO to profit more than tenfold.

This kind of tenfold overnight surge is rare on mainstream exchanges outside of the ICO boom period (2017 to the first half of 2018).

Founder Sam Statement: FTX Reaches All-Time High Load

Following a surge last night, FTX founder Sam did not provide a direct public opinion on the price spike, only promoting the staking of SRM on the platform. In the early hours of the 12th, he stated that today marked the highest load ever for FTX, but they have not reached the limit yet as they have prepared many mitigation measures in advance. However, dealing with KYC remains a pain point. They will expand the server load.

Taiwanese Stakeholder Opinion: Open Staking, Room for Imagination

Laura Liu, spokesperson for Taiwanese investment firm " Evernew Capital," participating in Serum, stated:

"Setting aside the price, unlike in the past, most DeFi products are built on the established ecosystem and user base of Ethereum. Sam's choice to collaborate with the new public chain Solana must have its challenges. This IEO can be seen as a perfect advertisement for SRM, and its future development is worth watching."

Woody, a partner at Evernew Capital who frequently shares investment insights, mentioned that SRM's initial circulating supply was only 31 million, and opening staking to reduce circulation chips, coupled with several major exchanges with high market heat simultaneously going online, along with the successful experience of FTT in the past, gives investors more room for imagination. He described it as, "This is a combination of a market maker in the coin circle and the DeFi craze."

FTX community partner Benson, also known as Sun Binsheng, mentioned that the main reasons for the surge were twofold. Firstly, SRM had a very small initial circulating supply, with only 31 million SRM in the IEO, and the lock-up periods for private investors and the team were 7 years, unprecedented in the coin circle. Even Ethereum, which came out only 4 years ago, had technical supporters willing to wait for the project's growth. In short, no one had cheap goods to dump, the team's market-making determination and market enthusiasm were sufficient, and the price of the coin rose.

Related Concept Coins: SOL Rises, FTT Unresponsive

Despite the fervor around SRM, the price of FTX exchange itself does not seem to be affected. It has been falling alongside Bitcoin from the 11th to the 12th, dropping by 6%.

The ecosystem still belongs to the ancient era of Solana (SOL), which rose from $1.8 at the end of July when Serum was announced to the current $3.22. During the SRM opening on the 11th, it briefly surged by 20%, but now has fallen back to a 10% increase from the opening price.

Serum To Launch First Trade This Week?

Founder Sam stated that the decentralized exchange Serum will launch its first trade this week. However, he mentioned that this would not represent the full product or a perfect decentralized exchange. They are still optimizing many graphical user interfaces (GUI), wallets, APIs, and documents. In the coming months, they will introduce cross-chain features, tokenized commodities, and more.

He also provided a rough outlook:

ICO Hype Making a Comeback?

It was reported that ConsenSys founder Joseph Lubin plans to launch more ICOs in 2020 under regulatory conditions. With the investment frenzy in DeFi and the successful IEO of Serum, will ICOs really make a comeback?

According to our investigation, traffic to ICO information websites surged from below 100,000 at the beginning of the year to nearly 300,000 between June and July. According to the ICO Drops website, there are up to 54 upcoming ICOs, four ongoing ones, and 23 completed ones. It is worth mentioning that the website includes DeFi liquidity mining coins such as COMP and MTA in the ICO category.

[This article is not investment advice, only conveying opinions of relevant individuals. Please evaluate carefully before investing.]