The investment arm of Binance, the world’s largest crypto exchange Binance Labsannounced a strategic investment in CAKE, PancakeSwap’s governance and services token. Binance Labs aims to lead the next wave of global blockchain adoption by providing technology development, marketing and community support, and Web3 solutions.
As a result of this strategic investment by Binance Labs, the price of the native token CAKE increased by 10% in a few hours. PancakeSwap (CAKE) Its price is currently trading at $4.78. Also, the trading volume has increased by 95% in the last 24 hours.
Strategic Investment in PancakeSwap’s Token CAKE from Binance
Binance, announced 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.
PancakeSwap, a decentralized exchange built on the BNB chain, has become the largest dApp on the BNB Chain with over 400,000 daily active users. It allows users to trade, exchange and stake BEP-20 tokens through an automated market maker (AMM) model. PancakeSwap also has a decentralized NFT marketplace powered by BNB.
Speaking on the subject, a Binance Labs spokesperson said:
“PancakeSwap is spearheading the development and mass adoption of the BNB Chain. Given that PancakeSwap is the most widely used dApp and DeFi project with the highest TVL on the BNB Chain, we have provided and will continue to provide strong support for the project.”
Since its launch in 2020, the BNB Chain ecosystem has grown tremendously. It has processed more than 3 billion transactions on the chain so far. It also hosts over 1,300 active dApps related to DeFi, the metaverse, blockchain games, NFT, and more.
On the other hand, Binance continues to invest in crypto this year despite the current negativities. Binance CEO “CZ” announced that it has formed a partnership with Malaysian cryptocurrency exchange MX Global to increase crypto usage in Malaysia. In addition, Binance and the Vietnam Blockchain Association have officially entered into a strategic collaboration today.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.