Serum is a decentralized exchange protocol that is based on the Solana blockchain and was developed to bring unmatched speed and cheap transaction costs to the world of decentralized finance. Since the beginning of its existence, the protocol has received support from both Alameda Research and FTX. Since the beginning, the exchange has promoted a number of weekly SRM airdrop programs for those individuals who own FTT.

The Solana foundation revealed on November 14 in a blog post that it controlled a total of $134.54 million worth of SRM tokens on FTX, which casts serious question on the survival of the project. The next day, the Serum community split the project in order to shield themselves from the $400 million FTX breach, which caused the token's value to increase by more than 80 percent. However, as a result of this, many Defi applications and developers abruptly severed their links with the project, which led to further assumption that the hack was carried out by an insider, resulting in a further decline in the price of the token.

Despite the fact that SRM still has a considerable trading volume on the cryptocurrency exchanges Binance, Kraken, and Kucoin, the price of SRM has continued to be held down by its ties to FTX. After a drop of more than 4.5% in the previous twenty-four hours, SRM was trading at $0.23 at the time of this publication. According to the price tracking tool CoinMarketCap, the overall value of SRM has decreased by more than 98% from its all-time high. This is a significant loss.

In the meantime, the FTX epidemic is still spreading, and Solana is finding itself in an even more difficult position. This is especially true considering that exchanges are cracking down on specific protocols that are tied to it. It is essential to be aware that several projects based on Solana made use of assets that were wrapped and referred to as "Sollet Assets" as replacements for Bitcoin, Ether, and other non-native cryptocurrencies. It was widely assumed that Alameda Research was the entity that provided backing for these assets while FTX was the entity that issued them. As a result, the collapse of FTX drove them into a spiral, which resulted in the exchange being responsible for a small number of protocols with bad debt.

Following the debacle that occurred with FTX, a number of different exchanges, including Binance, made the announcement that they would temporarily suspend deposits of USDC and USDT on the Solana chain. On the other hand, some of them would later return to the service. As a whole, these occurrences have exerted a significant amount of force on the price of SOL, which has dropped by more than 94% from its all-time high and now faces the possibility of entering the single-digit territory. After suffering a loss of 7% over the course of the previous day, SOL was trading at $13.37.