Binance Labs, the exchange leader’s investment fund, has just announced that it is investing in PancakeSwap, one of the main DEXs on the market.
Binance Labs: the strong arm of Binance in terms of investments
Binance Labs is the venture capital firm owned by Binance, the world’s largest cryptocurrency exchange. Its role is to identify and invest in various high-potential startups, projects or companies that are carriers of the Web 3 ecosystem. Binance Labs’ mission is to contribute to the mass adoption of crypto-currencies on a global scale . world.
The fund has been in existence for more than 3 years now and has supported more than 170 projects around the world . We can cite the Kava, Moonbeam and Axie Infinity blockchains among the projects supported by Binance’s investment arm.
Binance Labs in support of PancakeSwap
PancakeSwap is one of the most popular decentralized exchanges (DEXs) in the blockchain ecosystem. Launched in September 2020 and hosted on the Binance blockchain, it is in the top 10 protocols with the most assets of locked assets and has nearly 400,000 active users . It allows in particular the exchange of crypto-currencies in a few seconds or to access the interesting returns of the different liquidity pools.
Through this investment, the amount of which has not yet been revealed, Binance wishes to provide assistance for the technological development as well as the marketing of the platform.
PancakeSwap’s native token, CAKE reacted positively to Binance Labs’ announcement with a near 10% breakout on Monday . However, the token is still more than 36% below its price a month ago. Similarly, since its ATH, it has experienced an impressive drop, in particular due to the more than degraded market conditions in recent weeks. Some also wonder about the future of the project, in the increasingly competitive context of DeFi.
This news and this investment could also benefit the various cryptos and projects listed on the DEX. We can for example cite Lucky Block or the DeFi Coin which could benefit from this announcement from Binance Labs.
Through its venture capital fund, Binance wants to gain a foothold in the opportunity-rich universe of decentralized finance. It is therefore logical that the exchange giant has chosen one of the pioneers and recognized players in the sector, PancakeSwap. We will see in the coming months the scope of this investment and the developments for one of the benchmark DEXs on the market.
