- Binance’s venture capital arm said that it had invested in PancakeSwap’s governance token CAKE on Monday.
- The price of CAKE jumped on the announcement.
PancakeSwap’s governance token CAKE rose 9% on the news that Binance’s venture capital arm had purchased CAKE as an investment.
As a result of the bump in price, CAKE was up 9.8% on the day trading at $4.78 at the time of writing, according to CoinGecko.
Despite today’s bounce, the token is still in a long-term downtrend. The token is down considerably from an all-time high of $43.96 on April 30, 2021. This price decline is in line with much of the crypto market as prices have dropped to multi-year lows across the board following a tumultuous month of trading in May.
PancakeSwap is one of the leading decentralized exchanges, having commanded 14.43% of the DEX trading volume in May as it did $18.94 billion in volume, according to The Block’s Data Dashboard.
Binance Labs stated that the investment was made as part of its ongoing mission to facilitate global blockchain adoption by providing support in key areas such as technology development and marketing and community support.
Bill Qian, head of Binance Labs, said that PancakeSwap has been leading the development and adoption of the BNB chain, before going on to say that it plans to continue to provide strong support for the decentralized exchange.
While it’s unclear how Binance Labs will be supporting PancakeSwap, beyond purchasing tokens, it is clear that Qian won’t be involved as he is set to leave the firm. It was confirmed last week that Qian will depart the business for personal reasons and will follow Nicole Zhang, the firm’s executive director who left in May, out the door.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.