Crypto飞哥
--
$CAKE has finally launched, and it's not just the strategy I provided that encouraged everyone to buy; it was also mentioned in the square that everyone could buy. Although the early trend was a bit frustrating, it can still be said that patience pays off. Now, let me explain why I am optimistic about CAKE???
PancakeSwap is the largest decentralized exchange on the BNB chain, roughly equivalent to Uniswap on Ethereum. The platform's own token is called CAKE.
The mechanism for CAKE's lock-up and issuance is actually quite complex, and there isn’t particularly clear information available online, but we can look at the results: since mid-2023, the total supply of CAKE has been gradually decreasing; by the end of 2024, the circulating supply in the market has also basically stabilized. In other words, the CAKE now is no longer the kind of coin that is issued randomly and diluted every day; it can be categorized as “fully issued and stabilized.”
One highlight of CAKE is its deflationary mechanism, meaning that for every fee earned by the platform, a portion is used to buy back and burn CAKE. This is somewhat similar to MKR and is a more reliable form of “dividend” in the current market environment — it doesn’t directly give you money, but by burning tokens, it makes your holdings more valuable.
Especially starting from early 2025, the BNB chain began to aggressively promote on-chain meme projects, which directly boosted Pancake's trading volume and revenue. Moreover, Pancake's recent series of actions also indicate that it no longer wants to be just a tool; it is starting to focus on “how to make money.”
Among all on-chain businesses, DEX (decentralized exchanges) are currently the most profitable direction. Although Uniswap is the leader and makes the most money, it has never distributed profits to users. Even when the profit switch is off, the bulk of existing earnings is taken away by the centralized organization behind it, Uniswap Labs, which is truly outrageous.
Therefore, I believe that compared to those “decentralized, but slacking” DAOs, projects like Pancake, which are “semi-centralized but willing to work and earn money,” are actually more worthy of investment. CAKE can be seen as an “improved Uniswap,” with an estimated price-to-earnings ratio around 50. Although this is not low, I am optimistic about its future development. Additionally, BNB will likely continue to increase its emphasis on the DeFi direction, and Pancake happens to be the most core platform on this chain; personally, I have a favorable outlook on it.
PancakeSwap is the largest decentralized exchange on the BNB chain, roughly equivalent to Uniswap on Ethereum. The platform's own token is called CAKE.
The mechanism for CAKE's lock-up and issuance is actually quite complex, and there isn’t particularly clear information available online, but we can look at the results: since mid-2023, the total supply of CAKE has been gradually decreasing; by the end of 2024, the circulating supply in the market has also basically stabilized. In other words, the CAKE now is no longer the kind of coin that is issued randomly and diluted every day; it can be categorized as “fully issued and stabilized.”
One highlight of CAKE is its deflationary mechanism, meaning that for every fee earned by the platform, a portion is used to buy back and burn CAKE. This is somewhat similar to MKR and is a more reliable form of “dividend” in the current market environment — it doesn’t directly give you money, but by burning tokens, it makes your holdings more valuable.
Especially starting from early 2025, the BNB chain began to aggressively promote on-chain meme projects, which directly boosted Pancake's trading volume and revenue. Moreover, Pancake's recent series of actions also indicate that it no longer wants to be just a tool; it is starting to focus on “how to make money.”
Among all on-chain businesses, DEX (decentralized exchanges) are currently the most profitable direction. Although Uniswap is the leader and makes the most money, it has never distributed profits to users. Even when the profit switch is off, the bulk of existing earnings is taken away by the centralized organization behind it, Uniswap Labs, which is truly outrageous.
Therefore, I believe that compared to those “decentralized, but slacking” DAOs, projects like Pancake, which are “semi-centralized but willing to work and earn money,” are actually more worthy of investment. CAKE can be seen as an “improved Uniswap,” with an estimated price-to-earnings ratio around 50. Although this is not low, I am optimistic about its future development. Additionally, BNB will likely continue to increase its emphasis on the DeFi direction, and Pancake happens to be the most core platform on this chain; personally, I have a favorable outlook on it.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.