Mark Weaden
Leading decentralized exchange (DEX) PancakeSwap has soared by 8% following an investment from Binance’s venture capital arm Binance Labs. The investment company revealed they were making a strategic investment into the veteran DEX.
PancakeSwap is built on the BNB Chain, which is an incentive for Binance to see success for CAKE. Binance has always promoted the coin and stands as the most predominant exchange based on overall trading volume.
What Was Announced?
Binance revealed today (June 6, 2022), that it would be investing in PancakeSwap’s utility and governance token CAKE. The company hopes to facilitate the next wave of global blockchain adoption, through the provision of development, marketing and community support, as well as enterprise solutions for Web3 integration.
Bill Qian, the Head of Binance Labs, stated that “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.”
What Does This Mean For PancakeSwap?
While the sum of the investment hasn’t been disclosed, there’s no question that the announcement had an immediate effect on CAKE’s price. Binance’s continued support for the project leaves little doubt that we’re going to see more dApp development on the blockchain, with the company stating “we have and will continue to provide strong support for the project.”
PancakeSwap offers a unique experience in the crypto space. A platform that offers unrivalled security, having never been hacked. Given the difficulties we’ve seen in the crypto markets so far in 2022, it’s great to see major companies backing these projects and driving things forward.
As of now, CAKE is trading at $4.54, peaking at $5 earlier today. While the markets are down, we don’t expect to see any excessive price increases in the near future. However, with major CEOs casting doubts over major currencies like Ethereum (ETH) and Bitcoin (BTC), once the market stabilises, we may see a shift towards DEXs like PancakeSwap.
