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As PancakeSwap intensifies efforts on its deflationary mechanisms, the price of its token is almost back to where it started.
CAKE is Still Burning
PancakeSwap, the Decentralized Exchange (DEX) protocol on the BNB Chain, announced burning a total of 6,770,615 CAKE tokens worth $22 million.
The Leading DeFi protocol made the announcement through Twitter on June 13 before introducing a proposal to utilize more trading fees to support CAKE buyback and burn mechanisms. Token burning occurs when the developers of a particular token remove a specified amount of the token from circulation to restrict supply, making them scarce, thus driving up the price.
🔥 6,770,615 $CAKE just burned - that’s $22M!
— PancakeSwap 🥞 #BSC (@PancakeSwap) June 13, 2022
💰 Trading fees (Swap and Perpetual): 247k CAKE ($1M) -33%
🔮 Prediction: 130k CAKE ($425k) -2%
🎟️ Lottery: 37k CAKE ($122k) +9%
🔒 NFT Market, Profile & Factory: 2k CAKE ($6k) +22%
🔨 Auction: 33k CAKE ($108k) +22% pic.twitter.com/3N7hY4Ku2S
According to PancakeSwap, the end goal of burning its CAKE tokens “is to reduce net CAKE emissions,” ultimately making CAKE “emission neutral” or “deflationary.” As per its whitepaper, one of the objectives of the project is to ensure that more CAKE tokens leave circulation than the amount produced, hence regular burning. But how has this affected the performance of the token since its launch?
Never - Before - Seen Lows
With a current price of $2.81, the CAKE token now approaches the index price it traded at launch. The token marked an all-time high of $44.18 last April, but it has declined by over 90% since then.
$CAKE is currently ranked number 71 on the list of cryptocurrencies at a circulating supply of 150,666,405.95 CAKE tokens and a market capitalization of $423.85M at the time of writing. However, since last April, the token has lodged a 92% decline in its market capitalization.

Price movements indicate the current year has been significantly bearish for the CAKE token. The price of the token took a plunge after the bloodbath that plagued the cryptocurrency market last April and it has since been on a steady decline. The token's Relative Strength Index (RSI) has also lodged below the 50 neutral regions.
However, increased offloading of the CAKE tokens has commenced with occasional bullish retracements, albeit short-lived. During the time of writing, the token was deeply oversold, with the RSI marking a spot at 22. The ongoing bearish run might not be over with the 50-day EMA comfortably positioned above price.

Furthermore, since the launch of the token, on-chain analysis revealed that on a social front, the CAKE token flourished the most in 2021. The token’s social Dominance peaked at 5.04% on July 14, 2021, but it currently stands at 1.706% at the time this article was written, declining by over 65%. Similarly, it reached a high of 3924 in Social Volume on July 23, 2021, but it now sits at 586 at press time – an 85% drop.

Proposal to Increase Buyback and Burn Allocation
To further intensify its deflationary efforts, PancakeSwap set out a proposal on June 13 to increase the buybacks and burns allocation to 0.0575%. With the allocation currently at 0.0500%, the Protocol stated that the extra 0.0075% would come out of its treasury allocation, thereby reducing the CAKE trading fee allocation that enters the treasury from 0.03% to 0.0225%.

What is PancakeSwap:
PancakeSwap is a Decentralized Exchange (DEX) built on the BNB Chain. It offers users various features such as Liquidity Pools, Swapping, Yield Farming, Syrup Pools, Automated Market Maker, Initial Farm Offering (IFO), NFT profile system, and many others.
PancakeSwap’s official links are available below:
Website | Twitter | Medium | GitHub |
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Related News


Binance VIP Traders Informed of $4B Settlement Back in September

The exclusive gathering took place at a luxurious Singapore night club in September, where attendees engaged with Binance executives and probed about the potential settlement.
Binance reportedly hosted an exclusive dinner for its most significant market makers in September. The gathering, held at a prestigious Singapore nightclub, was an intimate setting where select VIP traders gained insights into the impending $4 billion settlement with the U.S. Department of Justice, according to a recent report from Bloomberg.
The private dinner, organized for Binance's top traders, unfolded in the upscale 1880 members-only club. Attendees, consisting of market makers and traders, engaged in discussions with Binance executives about the company's legal challenges. The conversations revolved around the potential $4 billion fine, leaving attendees convinced that Binance could afford and would settle such a substantial amount.
Attendees' Perspectives
Reports suggest that attendees, after breaking into smaller groups, sought clarification on Binance's legal troubles. They left the dinner with a heightened expectation of the $4 billion settlement, emphasizing the significant financial impact it would have on the exchange.
Former CEO Changpeng Zhao was notably absent from the gathering, with the then-head of regional markets, Richard Teng, representing the company.
In response to the reports, a Binance spokesperson disputed certain aspects of the event's depiction while refraining from specifying the inaccuracies, as per The Block. This discrepancy in accounts raises questions about the transparency surrounding Binance's legal challenges and its communication with stakeholders.
Implications of the Settlement
Binance’s $4 billion settlement with U.S. authorities, including the Department of Justice, Department of the Treasury, and the Commodity Futures Trading Commission, marked one of the largest corporate settlements in U.S. history.
The resolution concluded a criminal investigation into allegations of money laundering and sanctions violations, settling many of Binance's legal troubles in the U.S. However, Binance.US and Changpeng Zhao still face a lawsuit filed by the U.S. Securities and Exchange Commission.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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