The largest cryptocurrency exchange has recently made an announcement for a cryptocurrency that has strong connections with the FTX exchange.
According to the officials at Binance, they will be delisting Serum (SRM) from their platform due to the risks involved with the protocol.
Binance to Delist SRM Pairs
According to the announcement by Binance officials, they have decided that they will be delisting the SRM trading pairs from their end.
The officials announced on Friday that they will be delisting three pairs for the SRM token. Once they are delisted, the users will not be able to use them for trading purposes.
The date of delisting the SRM pairs communicated by the Binance officials is November 28. The pairs to be delisted include SRM/USDT, SRM/BTC, and SRM/BNB.
The reason behind the Delisting
The executives at Binance have revealed that the reason they have delisted SRM pairs is because of Serum’s connection with the collapsed FTX exchange.
Serum’s SRM token is based on the Solana blockchain. Following the FTX crash, the Solana blockchain itself has come under great pressure due to its strong backing from the exchange.
As the token is based on SRM, it has suffered from a great loss since the FTX crash. FTX had taken a great interest in the SRM token ever since it was launched by the Solana blockchain.
FTX even gave out the SRM tokens to the users in the form of weekly airdrops. These tokens were given out as rewards to the FTX users, meaning that they were a great deal for the exchange.
Announcement by Solana Foundation
On November 14, the officials at the Solana Foundation announced that they had a tremendous amount of SRM tokens locked on the FTX exchange.
They confirmed that a total of 134.54 million tokens have been stuck on the troubled exchange. This ended up raising many concerns among the crypto investors who started to sell SRM and save their investments.
SRM to Take a Huge Hit
Once the SRM trading pairs are removed from Binance, it is going to be very catastrophic for the investments.
It is worth mentioning that 70% of the overall trading volume for the SRM is generated through the Binance exchange. With the SRM pairs getting removed from Binance, the token will take a huge hit.
Despite being removed from the Binance exchange, the SRM token is still trading on multiple major cryptocurrency exchanges.
These exchanges include Gate.io, Kucoin, and Kraken. As of now, none of the mentioned exchanges have made any announcements similar to the Binance exchange.
After Binance’s announcement, the trading price of the SRM token dipped 7.5% in a 24-hour window. At the time of writing, SRM’s trading price is worth $0.2704.
