PancakeSwap (CAKE) Surges by 9.8% As Binance Labs Invests in CAKE
June 6, 2022CAKE, the governance token of PancakeSwap, increased by 9% as Binance’s venture capital arm purchased CAKE as an investment.
CAKE was up 9.8% on the day, trading at $4.75 at the time of writing, according to CoinMarketCap.
Despite today’s recovery, the token remains in a long-term downturn. CAKE has dropped significantly since reaching an all-time high of $43.96 on April 30, 2021. This price reduction is consistent with the rest of the crypto market, as the crypto market has fallen to multi-year lows across the board following a volatile month of trading in May.
According to data, PancakeSwap is one of the biggest decentralized exchanges, accounting for 14.43% of DEX trading volume in May, with $18.94 billion in volume.
Binance Labs Invests In PancakeSwap
Binance Labs announced in a blog post that the investment is part of its continued mission to promote global blockchain adoption by offering assistance in critical areas such as technological development, marketing, and community support.
Following this, Binance Labs’ Bill Qian stated that PancakeSwap has been spearheading the development and adoption of the BNB chain. In addition, he adds that the firm intends to continue to provide significant support for the decentralized exchange (DEX).
While it is unclear how Binance Labs will support PancakeSwap other than acquiring tokens, it is evident that Qian will not be participating because he is leaving the company. It was reported this week that Qian would leave the company for personal reasons, following Nicole Zhang, the firm’s executive director, who left in May.
