Why PancakeSwap Plummeted Today
Popular decentralized finance (DeFi) application PancakeSwap (CRYPTO: CAKE) plunged on Tuesday after it underwent a significant update. The team behind the project changed the way PancakeSwap token holders can earn yield on their investment, and the change didn't seem to be well received. At 10:30 a.m. ET, PancakeSwap tokens had declined 11% in value over the previous 24 hours.
Cryptocurrency investors often choose to earn yield on their holdings through a process called staking. PancakeSwap, an automated market maker (AMM) DeFi app, provided several ways for holders to do this already. But yesterday, it changed how staking works, and the old staking pools were retired. And that's about when the price of PancakeSwap tokens started falling.
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Source Fool.com
