Binance Labs Invests In PancakeSwap As CAKE Soars Nearly 10%
The world’s leading crypto exchange service provider, Binance, announced another new move by its venture arm. Binance revealed that its venture arm, Binance Labs, has purchased a significant stake in PancakeSwap’s governance token, CAKE.
A Strategic Investment by Binance Labs
Binance Labs sees itself as the dominant player in the next phase of blockchain adoption worldwide. The firm wants to lead the next wave of blockchain adoption by providing technology innovations and Web3 solutions services.
Due to the latest investment from Binance Labs, the CAKE token has soared to almost 10% just hours after the announcement. However, the rally did not have much impact as the value of CAKE hovers below the $7.46 price level.
Furthermore, last month has been a challenging period for the entire crypto industry due to the Terra ecosystem’s crash.
According to the statement released by Binance on its website, the new investment signaled a strategic move by the company. The investment in CAKE is another drive by the crypto exchange to leverage the market structures to its advantage.
However, the crypto exchange made no mention of the amount involved in the latest investment in the PancakeSwap network.
PancakeSwap is one of the leading decentralized exchanges hosted on the BNB chain. Additionally, it has grown to take its place as the most prominent dApp on the BNB network, with more than 400,000 active users.
The platform allows for trading, swapping, and staking BEP-20 tokens using an automated market maker (AMM) protocol. Moreover, the network boasts a decentralized non-fungible tokens (NFT) marketplace built on the BNB chain.
Since BNB Chain’s launch in 2020, its ecosystem has snowballed. The platform has processed over 3 billion transactions. Furthermore, over 1,300 dApps connect to the metaverse, DeFi, NFT, etc.
Binance Aims for Global Expansion
Binance’s commitment to crypto adoption and expansion is never in doubt. The leading crypto exchange has made its intention to expand its services clear. This year, its drive for crypto expansion and adoption has gathered momentum.
Additionally, Binance and its venture arm, Binance Labs, have shown commitment to crypto and blockchain firms. The exchange more often helps other digital assets service providers with technical aids and expertise.
Head of Binance Labs, Bill Qian, noted that PancakeSwap is a top player in the development and adoption of blockchain. Additionally, listing CAKE on the BNB chain has helped accelerate cryptocurrency adoption.
As a result, Binance Labs intend to provide robust support for the decentralized exchange as it seeks to promote global crypto adoption.
Binance CEO Changpeng Zhao announced on June 6 that the exchange is in partnership with Malaysian exchange, MX Global. The deal is part of Binance’s drive to expand crypto use in Malaysia.
Moreover, both Binance and the Vietnamese Blockchain Association collaborate on future crypto and blockchain expansion.
Meanwhile, it is unclear how Binance Labs intends to support PancakeSwap as details are still sketchy. Binance did not respond when CoinDesk contacted the exchange for more information.
