Binance Labs Invested in PancakeSwap; CAKE Token Rises 10%

Binance’s venture and incubation arm announced strategic investments in the PancakeSwap decentralized exchange on the BNB Chain network.

.@BinanceLabs has invested in @PancakeSwap‘s utility and governance token, $CAKE.

This investment will provide technology development, marketing and community support as well as Web3 enterprise solutions.https://t.co/JHO2P9k9rH

— Binance (@binance) June 6, 2022

\n\n\n\n

Binance Labs purchased CAKE tokens for an undisclosed amount.

\n\n\n\n

According to a statement, PancakeSwap, launched in September 2020, now counts more than 400,000 daily active users.

\n\n\n\n

“Given that PancakeSwap is the most widely used application with the highest TVL on BNB Chain, we will provide and continue to provide strong support for the project,” said a representative of Binance Labs.

\n\n\n\n

Following the news, the CAKE price rose 10% — the token trades at around $4.8.

\n\n\n\n

\n\n\n\n

According to DeFi Llama, the project’s TVL stands at $3.91 billion. In the overall ranking by this metric, PancakeSwap ranks eighth.

\n\n\n\n\n\n\n

As reported in May, the DeFi project’s community voted for changes to the tokenomics, notably a cap on CAKE issuance of 750 million coins.

\n\n\n