Binance Labs Makes Strategic Investment In PancakeSwap And CAKE

Binance labs makes strategic investments in pancakeswap and CAKE tokens after announcing via its incubation arm so let’s read more today in our latest cryptocurrency news.

Binance’s venture capital branch announced it invested in cAKE as the utility and government token of PancakeSwap. The undisclosed investment is part of hte entity’s mission to facilitate the new wave of global blockchain adoption and provide technology development, community support, and marketing as Binance Labs reported.

Binance Labs Makes Strategic Investment in PancakeSwap | Binance Blog https://t.co/GoGE1F5vVX

— Binance Labs Fund (@BinanceLabs) June 6, 2022

Launched back in 2020, PancakeSwap is an automated market maker whcih allows users to trade, swap, and stake BEP-20 tokens that are issued on the Binance BNB chain. According to Binance Labs, the platform is now the network’s biggest dapp with more than 400,000 daily active users. In terms of total value locked, the DEFI lama reports show that it now boasts $4.82 billion and makes BNB Chian’s most valuable application.

Boasting $387 million in trading volume in the past day, PancakeSwap is the latest iteration of the protocol and is now the third biggest DEX behind Uniswap and DYDX. Bill Qian, the head of Binance LAbs, said:

“PancakeSwap has been 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 and will continue to provide strong support for the project.”

Binance operates its own DEX but doesn’t control or operate Pancakeswap which was built by a few anonymous developers. It is not clear whether this can change after today’s announcement. The price of CAKE rallied to a new high of $4.84 after the announcement, before correcting to $4.66 and still being up by 7.14% over the past day. With a market cap close to $761 million, CAKE is the industry’s 66^th biggest asset and since its launch in 2018, Binance Labs marketed it as a social impact fund and incubation proejct that can empower blockcahin and crypto entrepreneurs, projects, and communities as it invested in over 100 projects.

The portfolio includes major projects like Axie Infinity, Audisu, Dune Analytics, Elrond, Polygon, and The Sandbox. Last week, Binance Labs also announced a new $500 million investment fund dedicated to discovering projects and founders with the potential to build and lead Web3 across NFT and DEFi.