CAKE Jumps in Price Following Binance Labs’ Investment
- While far from its all-time high of $43.96, the price of CAKE did jump by 7% following Binance Labs’ investment, and is now traded for around $4.7.
- As the largest dapp on BNB Chain, PancakeSwap has been leading the development and adoption of the blockchain, which is one of the reasons behind the investment.
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The venture capital arm of the largest exchange by volume, Binance, has made an investment in decentralized exchange (DEX) PancakeSwap through the purchase of CAKE tokens, Binance said in a blog post on 6 June.
According to the announcement, the investment was part of Binance Labs’ ongoing mission to facilitate global blockchain adoption by providing support in key areas, such as development, marketing, and community support. Another reason for the investment is that PancakeSwap is one of the largest decentralized applications on Binance’s blockchain, BNB Chain, and as such has been leading the development and adoption of the network. The head of Binance Labs, Bill Qian, said in a statement:
“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.”
While Binance’s VC arm did not disclose the amount of tokens it purchased from PancakeSwap, the price of CAKE — the governance token of the DEX — rose significantly following the news. At the time of writing the token is exchanging hands for around $4.7 a piece, and while this is significantly lower from its all-time high of $43.96, it still represents a 7% increase in price for the last 24 hours.
PancakeSwap was first launched in September 2020 on the BNB Chain, and provides an automated market maker (AMM) that allows users to trade and swap a variety of decentralized finance (DeFi) tokens. Since its inception, the application has already grown to be one of the largest DEX’s on the market, and is currently sitting in third place with a daily volume of around $400 million.
Binance Labs was launched in 2018 with the mission to advance the adoption of crypto and blockchain, and has since invested in over 100 projects globally. Earlier this month, the company raised a new $500 million fund to support innovation across the crypto industry, and invest in projects that have the potential to “build and to lead Web3 across DeFi, NFTs, gaming, Metaverse, social, and more”.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.