PancakeSwap (CAKE) price up 8% after Binance’s venture capital purchased CAKE token

The price of PancakeSwap’s native token, the CAKE, has jumped after Binance’s venture arm, the Binance Labs, purchased CAKE tokens as an investment.

Although even after today’s rally CAKE is still way down from its all-time high of $43.96 that it had set last year on April 30, the move by Binance Labs proves that Binance has confidence in PancakeSwap’s native token.

Are you looking for fast-news, hot-tips and market analysis?

PancakeSwap is one of the largest decentralized exchanges around the world and it commands about 14% of the overall DEX trading volume according to the data released by The Block.

Binance Labs investment plan

In the announcement, Binance noted that the investment was in line with its current mission of facilitating the global adoption of blockchain. However, they did not disclose how much they will be investing.

To actualize this, Binance Labs will provide support to the main areas like community support, and technology development and marketing.

Head of Binance Labs, Bill Qian said:

“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.”

However, it’s not yet clear how Binance Labs will provide support for PancakeSwap apart from buying the tokens.

Meanwhile, it was confirmed last week that Qian is set to leave Binance for personal reasons. In May this year, Nicole Zhang, Binance Labs executive director, had also left.