The venture capital arm of cryptocurrency exchange Binance has made an investment in PancakeSwap, a decentralized exchange (DEX) built on the BNB chain.
- CAKE, the exchange's native token, rose nearly 10% on Monday following the announcement.
- At press time, CAKE was trading at $4.77. Despite the increase, the token is still down 36% from $7.46 a month ago, reflecting a difficult May for crypto markets.
- Binance Labs intends to use the investment to further develop PancakeSwap's technology, marketing, and community support, as well as to advance Web 3-based services.
- PancakeSwap, which launched in September 2020, provides an automated market maker (AMM) that allows users to trade and exchange decentralized financial tokens (DeFi). It is now the largest decentralized app (dApp) on Binance's blockchain network BNB Chain with over 400,000 users.
- Binance was not immediately available for comment when contacted by CoinDesk for more details on the size of the investment.