As announced by Binance Labs, the investment was made directly into the CAKE tokens which represent the governance token of the protocol. Through the investment, the VC seeks to extend its “mission to facilitate the next wave of global blockchain adoption by providing technology development, marketing and community support, and enterprise solutions for Web3 transformation.”
“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,” said Bill Qian, Head of Binance Labs.
With Binance Labs recently re-igniting its focus to back both new and established projects in the Web3.0 ecosystem, the strategic investment into PancakeSwap is Binance’s own way of letting charity begin first at home before it then trickles down to startups built on other chains.
Binance Labs, according to an earlier report by TheCoinRise floated a $500 million fund to help bootstrap startups providing innovative solutions in the cryptocurrency industry at large.
Binance Labs Investment and CAKE Upshoot
The investment from Binance Labs has sent the price of the CAKE token soaring remarkably as it came off as one of the biggest gainers today.
CAKE is currently changing hands at $4.70, up 7.93% in the past 24 hours according to data from CoinMarketCap. While CAKE typically used to be amongst the most prominent altcoins around, the encompassing crypto market correction has greatly affected the price and valuation of PancakeSwap and has fueled its retrogression to the 64th largest cryptocurrency by market capitalization.
The investment from Binance may represent a new headstart that the token needs to finally chart its way back on a winning spree.