PancakeSwap is a decentralized exchange built on Binance Smart Chain, a cheap and fast alternative to Ethereum. By tapping into user-generated liquidity pools, PancakeSwap allows users to trade cryptocurrency assets, just like Uniswap DeFi AMM, runs on Ethereum.
PancakeSwap is a good investment: some important facts about Pancakeswap?
- Using PancakeSwap, users can exchange their coins without the need for intermediaries. Founded in 2020, this DEX offers tremendous liquidity, extensive features, and a growing reputation within the blockchain space.
Users can trade BEP20 coins and Binance Coin (BNB) without relying on an intermediary and without losing control over their private keys.
- It is similar to Ethereum’s Uniswap, but it runs on Binance Smart Chain compared to other decentralized exchanges. A token developed by Binance, BEP20, is at the heart of PancakeSwap. Essentially, it specifies how tokens can be used, such as how they are used. With such a flexible format, BEP20 allows developers to launch a variety of different tokens.
- PancakeSwap provides security. Blockchain security companies like Certik have controlled the platform. While the platform is anonymous, it is also open source, ensuring full transparency.
Pancakeswap is a good investment: strength behind the development of Pancakeswap
- Several industry experts believe that a platform like PancakeSwap would usually require crypto and IT teams to develop for up to two years.
- PancakeSwap is, therefore, the fruit of former Binance employees, or, as many sites have said, “an anonymous group of developers.”
Pancakeswap is a good investment: Tokenomics
A total of 143,289,171 CAKE coins are in circulation. CAKE coins are available in an amount of 750,000,000.
How Pancakeswap works
- Users can earn a portion of the profits made from transactions by trading against liquidity pools rather than counterparties. We can help you if you’ve never heard of liquidity pools.
- In essence, a liquidity pool is a fund created by the user. Through stake rewards derived from transaction fees, users are encouraged to contribute to the liquidity pool and turn into liquidity providers. Based on the percentage of the liquidity pool held by the liquidity provider, wagering premiums are calculated.
- Users and merchants do not have to be matched with this method. The token can be deposited in the liquidity pool and exchanged for another when they want to exchange tokens.
- There’s more, though. PancakeSwap offers activities that resemble games. Users can use the lottery feature to win free tokens and bet whether the price of Binance Coin will rise or fall over a given period of time.
Is Pancakeswap a good investment?
Some data for $Cake:
- Market Cap: $679 million
- Ranking among all cryptocurrencies: 65th
- Pancakeswap competitors: Uniswap, Sushiswap, Kyberswap, Dodo, etc.
- Current performance: Underperformer
- % of currently profitable owners: 16 %
- Looking at the project, Pancakeswap has technology on its side and has the potential to give Multibagger returns.
- However, it is recommended that you do your own research before making an investment in any cryptocurrency. Currently, the market is very volatile and the chances of losing are more than gaining. You should only invest the amount you can bear to lose.