Altcoin Spotlight: Raydium (RAY)

The cryptocurrency market is in a constant state of change. Each and every day, new tokens enter the markets while others fade into oblivion. Even if you have a good source of cryptocurrency news, there is still a chance that some of the newer tokens slip your radar.

One of those tokens is Raydium, which is now in the top 60 on CoinMarketCap and trading at an impressive $7 USD per token. But what is Raydium exactly? And should you buy it? Keep reading as we go through everything that you need to know!

What is Raydium?

Raydium is a cryptocurrency exchange based on the Solana blockchain. Is it an automated market maker (AMM for short), which means it creates and provides liquidity to all users of the platform. This allows those who use the platform to make almost instant trades.

Raydium also offers an array of other cryptocurrency services, the most notable of which are options that allow users to earn yield on their holdings. Although the website isn’t quite the same as other decentralized exchanges, it’s far from centralized—offering users a good middle ground with a mix of the privacy of a DEX and the security and speed of a centralized exchange.

Do note that Raydium does collect KYC and AML information—meaning it isn’t a fully decentralized exchange and you will have to verify your identity before making trades.

How Does Raydium Work?

Raydium centers around an associated cryptocurrency by the name of RAY. RAY is a governance token native to the platform that can be purchased or staked. Once staked, these holdings are used to provide liquidity to other users, offering them a percentage of the yield in return. These orders are processed by the efficient Serum orderbook protocol.

All fees associated with the platform must be paid in RAY. This means that anyone who wishes to use the platform must buy some. In addition to staking these in the liquidity pool of the website, these tokens can also be used to invest in a variety of start-up products that are featured on the launch pad page of the website. It is important to note that these projects are not always fully vetted, and investors should only back them with their own risk in mind.

Who Created Raydium?

The Raydium project was created by a serious of individuals who operate under pseudonyms. Some of these individuals are still involved in maintaining and improving the project, while others have stepped back in recent years.

As far as we know, AlphaRay is the main individual behind Raydium and they are still heavily involved. Supposedly, AlphaRay came from a background of commodities training, but this is impossible to verify for obvious reasons. XRay, often referred to just as X, is the chief of technology for Raydium and is still involved in the project.

Other pseudonyms reported are GammaRay, StingRay, and RayZor. GammaRay is still involved in the marketing of the platform and has been involved since its launch in February 2021. StingRay and RayZor, while involved in various aspects of the development of the platform in the past, seem to no longer be actively involved in the project in the present.

Should You Buy Raydium?

This is a bit of a tricky question to answer. Raydium, overall, seems to be on the up and up. It is a well-structured product with a history of honesty. That being said, buying Raydium is still quite a risk.

First and foremost, the creators operate under pseudonyms, and as such, they could likely disappear at any given time. This brings us to the next issue—we aren’t sure how much of a stake each of these individuals has in the platform, though it is assumed that they have some. It could be a large holding or a small one—the point is, we don’t know.

Additionally, because Raydium is a DeFi platform but still requires a lot of regulatory information, we aren’t exactly sure what the benefit of using it is versus using an exchange like Uniswap where the creators are publicly named and responsible for the future of the project.

That being said, we do think there are even more dangerous DeFi platforms out there, so as far as they go, you can’t go too wrong with Raydium. But we strongly advise you to only purchase what you will use to trade on the platform and don’t use Raydium as an investment vehicle or store of value.

This is because we aren’t 100% sure this isn’t a rug pull scheme. We are reasonably sure it isn’t a pump and dump, but other things in the cryptocurrency industry have left us shocked, so this wouldn't be the first time we would be surprised by something like this being a pump and dump scheme. So basically, invest at your own risk.  

Where to Buy Raydium

If you have decided to use the Raydium exchange or just want to buy some RAY to keep on hand, here is where you can purchase the token:

·      Gate.io

·      Raydium.io

·      Kriptomat

·      Binance

·      KuCoin

·      MEXC

This is just a brief list, Raydium may be available for sale on other exchanges that aren’t listed here. Just be sure to vet any exchange you plan to purchase RAY on before placing your order.

Beware of the Raydium App Scam

Although Raydium.io is a real cryptocurrency exchange, there are many fake actors in space. As recently as May 2024, several individuals reported a fake Raydium app appearing in the App Store on their devices, then stealing their information to gain access to their crypto.

For this reason (and more), please only go to the official Raydium.io website to sign up for this exchange, as the validity of any other path cannot be verified.

An additional word of caution: never give your seed phrase to anyone, not even an app that is asking for it. This is the most common way that seed phrases get stolen. If you ever do give out a seed phrase, that wallet is compromised and you should immediately transfer all funds somewhere else. Then, forget that the wallet exists—we aren’t kidding.