On the 23rd of January 2023, PancakeSwap went on Twitter to announce burning $27 million worth of CAKE.
🔥 6,992,717 $CAKE just burned – that’s $27M!
💰 Trading fees (Swap and Perpetual): 212k CAKE ($816k) +68%
🔮 Prediction: 61k CAKE ($236k) -14%
🎟️ Lottery: 36k CAKE ($138k) +36%
🔒 NFT Market, Profile & Factory: 1,134 CAKE ($4k) +10%
🛍 IFO: 3k CAKE ($11k) pic.twitter.com/2xEiNFPIv0— PancakeSwap v4🥞 (@PancakeSwap) January 23, 2023
PancakeSwap is a project built on Binance Smart Chain, according to its tokenomics and design, it has consistently burnt portions of its CAKE tokens obtained from trading fees.
Recently, the project set $27 million worth of CAKEs on fire in order to fight inflation, which some believe is responsible for the rise of the token’s price in 2023.
PancakeSwap is a decentralized exchange that offers users such features as liquidity pools, swapping, yield farming, initial farm offers (IFOs), NFT tools, and an automated market maker, among other tools.
It’s a platform that allows users to earn in many ways, fully utilizing their crypto assets. They can trade, yield farm, predict, join lotteries, and hoard NFT collectibles. With all that possibilities, PancakeSwap is the leading choice for DEX activities on BNB.
Through its official account, the project also shared statistics on Trading fees, consisting of swaps and perpetual that increased by 68%, lotteries that increased by 36%, the NFT marketplace that saw increased activities of 10%, and predictions that reduced by 14%. Then, the project concluded the report by sharing proof of burnt CAKEs on Bscscan, Binance’s blockchain explorer.
As a result of CAKE’s deflationary nature, it seems to be a popular choice for whales.
🐳 The top 100 #BSC whales are hodling
$63,784,004 $LYO
$30,541,343 $SFP
$30,003,914 $XRP
$20,945,818 $USDZ
$20,519,180 $PALLA
$15,006,972 $MATIC
$14,800,877 $Cake
$11,588,597 $PHBWhale leaderboard 👇https://t.co/0SYnjw0xQs pic.twitter.com/enl5xZ9TR4
— WhaleStats – the top 1000 BSC richlist (@WhaleStatsBSC) January 24, 2023
WhaleStat on BSC, which is a popular Twitter account that posts updates on the activities of whales on BSC shared an update on the 24th of January 2023.
According to WhaleStats, the top 100 whales on BSC are holding around 14 million CAKE tokens, among others. This shows the amount of faith whales have in the project, signifying good omens for users.
In response to PancakeSwap’s tweet, some users were quick to declare their bullish stance on the project. Others, though, had some reservations.
Since the current supply is at 48% compared to the max supply, some questioned the value of burning tokens if they were just going to print more back to the ecosystem. Others pointed out that the price pump was not proportional to the token’s burnt. Thus, the project should focus less on burning tokens and more on increasing the rewards of stakers.
In those users’ opinion, inflation is still very heavy, and once they stop printing coins, the value of the project would fall too.
