Binance, the world’s largest crypto exchange, said on Monday that its venture arm Binance Labs has made a strategic investment in PancakeSwap’s governance and services token, CAKE. Binance Labs envisions leading the next wave of global Blockchain adoption by providing technology development, marketing and community support, and Web3 solutions.
Binance Labs invests in CAKE
As a result of Binance Labs’ investment, the price of CAKE increased by about 10 percent in a few hours. PancakeSwap (CAKE) price is currently trading at $4.78. Also, the trading volume has increased by 95 percent in the last 24 hours. Despite the rally, the token is down 36 percent from $7.46 a month ago after a tough May for the crypto markets. The cryptocurrency exchange announced on its website on June 6 that its venture arm Binance Labs has made a strategic investment in CAKE. However, the company did not disclose the amount it invested in CAKE.
Released in September 2020, PancakeSwap is an automated market maker (AMM) that allows users to trade and exchange decentralized finance (DeFi) tokens. ) provides. With over 400,000 users currently, Binance’s Blockchain network is the largest decentralized application (dApp) on the BNB Chain. In addition, PancakeSwap has also established a decentralized NFT marketplace powered by BNB. A spokesperson for the exchange’s investment arm said:
PancakeSwap is leading the development and mass adoption of BNB Chain. Given that PancakeSwap is the most widely used dApp and the DeFi project with the highest TVL on BNB Chain, we have provided and will continue to provide strong support for the project.
PancakeSwap’s price has skyrocketed
Since its launch in 2020, the BNB Chain ecosystem has grown tremendously. It has processed more than 3 billion transactions. It also has more than 1,300 active dApps created related to DeFi, the metaverse, blockchain games, NFT, and more. Binance Labs plans to invest in further developing PancakeSwap’s technology, marketing, and community support, as well as driving Web 3-based services. CAKE rose as much as 10 percent after the news of Binance’s investment and rose from $ 4.34 to $ 4.84. At the time of writing, it’s changing hands at $4.77.
Meanwhile, Binance’s missions to expand globally and work on crypto adoption have gained momentum this year. Binance and Binance Labs have also committed to helping blockchain and crypto companies. On June 6, Binance CEO Changpeng Zhao announced that it has formed a partnership with Malaysian cryptocurrency exchange MX Global to increase crypto usage in Malaysia. Binance and the Vietnam Blockchain Association have officially entered into a strategic collaboration today.
