Today we’re going to help you review and interpret Serum, a project that, like Solana, is part of the FTX ecosystem and has begun flirting once again with All Time Highs.
Whilst Serum’s token $SRM sits at a humble market cap of $2.6B, there are myriad arguments to be made that the project does and will play a pivotal role in the crypto industry.
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Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
🏋️♀️ Pay Attention to Serum
Founded in August 2020 by the Serum Foundation and the team at FTX, Project Serum is a decentralized exchange (DEX) known for unparalleled speed and scalability and inexpensive transaction fees. While there are lots of features that make Serum a viable DEX, we’ll specifically review four today.
1️⃣ Intuitive User Interface. One drawback with the world of decentralised exchanges is that they can be difficult to navigate. Contrary to centralised exchanges where you can file support tickets, message a customer experience team, or work with a middleman, the permissionless nature of a DEX makes it harder (or even impossible) to rectify a mistake. The learning curve is often steep because the interface and experience is unfamiliar to a first time user. Serum combines the trustless, non-custodial and fully decentralized features you may be familiar with if you’ve used other DEXs with the sleek user experience and convenience with which users of centralised exchanges are likely familiar.
2️⃣ Cheap & Fast Transactions. Even if you do have experience trading on an Ethereum-based DEX, you know the pain of waiting hours for a trade to settle. Built on Solana, one advantage of Serum is the speed of transactions which come in at 50,000 TPS. For comparison, Ethereum can process 30 TPS, Binance Smart Chain 300 TPS, and Cosmos 10,000 TPS. Solana also costs approximately $10 for every 1 million transactions.
3️⃣ Interoperability. You may ask, does the fact that Serum is built on Solana hinder my ability to interact with Ethereum? Solana’s cross chain integration, Wormhole, enables users to convert between ERC20 and SPL tokens seamlessly, meaning users can take advantage of Solana without sacrifice.
4️⃣ On-Chain Central Limit Order Book. Serum’s on-chain central limit orderbook (CLOB) allows for high speed and precise trades and minimises slippage. It empowers users to trade directly with each other without delay. How? Large market makers like Alameda provide liquidity to the CLOB, enabling Serum to match your buy order on the blockchain with a sell order quickly.
If you’re someone compelled by fast and cheap transactions in a decentralised ecosystem without giving up the intuitive user experience of a centralised exchange, Serum is a great tool to get you started. With a company like FTX, that has partnered with the likes of Tom Brady, Stephen Curry, Major League Baseball, American Airlines Arena to name a few, behind Project Serum, Sam and team is not to be underestimated.
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🇺🇸 Coinbaseless Accusations
In June, Coinbase announced a new high-yield USDC lending product, Coinbase Lend. This offering intends to provide Coinbase users 4% APY on USDC holdings. This week the SEC informed Coinbase via a Wells notice that this program would be classified as a security, and they would be sued if they moved forward with the launch. On September 7th Coinbase CEO Brian Armstrong took to Twitter to address the SEC’s response.
In the series of tweets, Armstrong explained that Coinbase reached out to educate the commission in May to ensure compliance.
The SEC responded by claiming that the lending feature was considered a security.
Coinbase asked for more information regarding how Lend would qualify as a security but were denied additional information.
Instead, the SEC subpoenaed records, demanded employee testimony and announced their intention to sue if the launch took place.
High-yield lending programs are a common offering among several well-respected crypto companies, which makes it especially strange that Coinbase has been so specifically targeted.
In May of this year, SEC Chairman Gary Gensler refused to meet with executives right after Coinbase became the first crypto company to go public in the United States.
Regardless of the SEC’s decision surrounding yield program regulation, some aspects of the action may raise investor eyebrows. The alleged purpose of the SEC is to protect investors, so why wouldn’t they agree to meet for a discussion to proactively assist a crypto company in their attempt to be compliant with guidelines and regulation? While we may not have all the answers, our chosen industry is starting to ask the difficult questions.
To learn more about high-yield interest options, head over to our Passive Income Guide.
📣 Curry With the Assist
Shark Tank stars Mark Cuban and Kevin O’Leary have long been making waves in crypto but competition is heating up; celebrities are jumping on the bandwagon daily.
NFL quarterback Tom Brady is famous in crypto for the laser eyes that signaled the market top in May.
Talk show host Steve Harvey just changed his Twitter profile picture to a Solana monkey.
And just recently, Steph Curry has made some noise. Curry is a point guard for the Golden State Warriors, who averages more than 20 points per game. He was a first round draft pick in 2009 and is famous for his 3-point shot, but shooting threes isn’t his only hobby, he has recently made headlines as a crypto enthusiast.
On September 6th, Curry tweeted that he was just getting started in the crypto game and was seeking advice. Tom Brady’s response: Do not get laser eyes! (Apparently he is aware of his top signal reputation. ☺) Someone must have given Curry some great advice, one of his first public crypto purchases was aBAYC in a tweed suit, which he displays as his Twitter pfp. (He is also reported to own some pudgy penguins as well.)
It wasn’t long before Sam Bankman-Fried swooped in on the basketball superstar turned crypto enthusiast and made him a global ambassador for FTX. O’Leary and Brady are already ambassadors for the brand, along with NFL quarterback Trevor Lawrence.
When Curry was seeking crypto investment advice, he wasn’t asking which altcoins to buy like some normie, he was asking which exchange he should partner with, and that answer has been FTX all year long.
🎧 Earning Crypto through NFT Gaming with Gabby Dizon
Gabby Dizon is co-founder of Yield Guild Games, the largest community of NFT gamers dedicated to earning money through gaming.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
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