Binance Labs Acquires CAKE Tokens
Binance Labsthe specialized venture capital arm of Binancetoday announced a strategic investment in decentralized exchange (DEX) token PancakeSwap, CAKE.
Built on the BNB Chain (formerly BSC Chain), PancakeSwap is the Blockchain’s Most Important DEX in terms of daily volume traded, and the second largest across all blockchains.
Launched in September 2020, PancakeSwap is also the most widely used decentralized application (dApp) on the BNB network according to the release, with over 400,000 daily active users and 2.6 million per month.
According Bill Qianthe head of Binance Labs, PancakeSwap has been an important factor in the overall development of the blockchain, so it’s only natural that Binance should support him:
“PancakeSwap was behind the development and mass adoption of BNB Chain. Since PancakeSwap is the most widely used decentralized application and the DeFi project with the highest TVL on the BNB Chain, we will continue to provide strong support for the project. »
It is not specified in the press release if Binance Labs will support PancakeSwap in any way other than by buying tokens.
Following Binance Labs’ announcement, the CAKE grew by just over 12%until reaching 4.9 dollars, before falling back to 4.68 dollars at the current price.
Price of the CAKE token over 24 hours
The token however observes a decline over the long term, especially when taking into account its ATH (all-time high, or highest price) of 43.96 dollars reached at the end of April 2021.
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Binance Labs undergoing restructuring
The news comes just days after we learned the departure of Bill Qiancurrent head of Binance Labs, as well as Nicole Zhang, previously the firm’s executive director. A source close to Binance then indicated that Bill Qian’s departure was due to purely personal reasons:
“As a matter of principle, we do not comment on staff movements at Binance. However, we can confirm that Bill is leaving Binance for personal reasons. »
Nicole Zhang, meanwhile, had served as Executive Director of Binance Labs since April 2020, eventually moving into venture capital within the investment fund specializing in fintech Lingfeng Capital.
No official announcement has yet been published to this effect, but it would therefore seem that these 2 positions are to be filled within the company.
Anyway, Binance Labs seems to be doing wonderfully, especially in a context where the cryptocurrency market is almost at a standstill. Indeed, the incubator raised 500 million dollars just a few days ago in order to continue to support various projects in its ecosystem.
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Sources: Binance Labs, CoinGecko, TradingView CAKE/USDT
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About the Author : Maximilien Prue
Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
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