Despite the rally, the token is still 36% below $7.46 a month ago after a challenging May for the crypto markets.
Binance Labs, the venture capital arm of Binance, the world’s largest crypto exchange by trading volume, has made an investment in PancakeSwap, a decentralized exchange (DEX) built on the BNB Chain.
CAKE, the native token of the exchange, was up nearly 10% on Monday following the announcement.
At press time, CAKE was trading at $4.77. Despite the rally, the token is still down 36% from $7.46 a month ago after a challenging May for the crypto markets.
Binance Labs intends for the investment to further develop PancakeSwap’s technology, marketing and community support as well as drive Web3-based services.
PancakeSwap, which was launched in September 2020, provides an automated market maker (AMM) allowing users to trade and swap decentralized finance (DeFi) tokens. It is now the biggest decentralized app (dapp) on Binance’s blockchain network BNB Chain with more than 400,000 users. The amount of the investment wasn’t disclosed.