GizmoLab Report: Cutting-Edge Developments in Web3 📈

A Quick TL;DR:

- Aerodrome Tops 2024 DEX Revenue Rankings, Outpacing Uniswap

- Singapore, Hong Kong, and UAE Lead in Crypto Adoption

- OKX to List Hamster Kombat Token

- Alchemy Acquires Bware Labs

- Feixiaohao Under Investigation

- Time Fun Raises $3M for Time Tokenization Platform

Aerodrome Surpasses Uniswap as the Highest Revenue-Generating Decentralized Exchange in 2024, Driven by Token Incentives

Aerodrome, a decentralized exchange (DEX) on the Ethereum Layer 2 network Base, has emerged as the leading revenue generator among decentralized exchanges in 2024. With over $500 million in total value locked (TVL), Aerodrome has amassed nearly $119 million in revenue year-to-date, more than double Uniswap's $49 million, according to Token Terminal. This surge is largely attributed to Coinbase Ventures' investment in Aerodrome’s native AERO token, which spiked over 1000%, boosting the value of token incentives and attracting significant liquidity.

Despite a 70% drop in AERO's price from its April high, Aerodrome continues to process substantial daily volumes, hitting an all-time high of $765 million on August 5. However, the exchange's revenue generation has come at a cost, with $2.65 spent on incentives for every dollar earned, leading to net negative earnings of $195 million due to over $313 million in AERO tokens awarded to liquidity providers.

Singapore, Hong Kong, and UAE Top Henley Crypto Adoption Index 2024, Showcasing Strong Regulatory and Innovation Ecosystems

A new report by Henley & Partners places Singapore at the top of the global cryptocurrency adoption rankings, with Hong Kong and the United Arab Emirates (UAE) closely following. The Henley Crypto Adoption Index 2024 evaluated 28 countries based on factors like public adoption, regulatory environment, innovation, economic conditions, and tax friendliness. Singapore scored 45.7 out of 60 points, leading due to its supportive business climate, comprehensive regulations like the Payment Services Act, and proactive initiatives like Project Orchid and Project Guardian, which foster crypto innovation.

Hong Kong ranked second with a score of 42.1, highlighted by its economic benefits and tax-friendly policies, alongside robust digital infrastructure. The UAE nearly matched Hong Kong with a score of 41.8, excelling in tax friendliness and innovation. The UAE's strong government support and dynamic startup environment further contribute to its high crypto adoption. This report underscores the importance of regulatory clarity and technological innovation in advancing global crypto adoption.

Chinese CoinGecko Alternative Feixiaohao Allegedly Under Investigation by Authorities

Feixiaohao, China's largest cryptocurrency market data platform, is reportedly under investigation, with key team members allegedly detained by law enforcement. According to Chinese media, the Inner Mongolia police have been investigating the platform for over six months, possibly due to compliance issues or disputes over business practices. The Shanghai-based Feixiaohao operated as a data aggregation platform, offering real-time data on digital assets and exchanges. It generated revenue through listing fees, advertising, and promotional partnerships.

Despite ceasing operations in mainland China following the country’s cryptocurrency crackdown, the platform continues to face legal troubles. Reports suggest Feixiaohao may have been scrutinized for promoting dubious exchanges and scam tokens, contributing to the investigation. For example, in November 2021, the platform allegedly promoted the Squid Game token, a project based on the popular Netflix show, which was later exposed as a rug pull. Attempts to reach the company’s representatives have been unsuccessful, heightening concerns about the platform's future.

OKX Announces Listing of Hamster Kombat Token for Spot Trading in September, Aligns with Airdrop Date 

OKX, the fourth-largest cryptocurrency exchange by 24-hour trading volume according to CoinGecko, will list Hamster Kombat's token, HMSTR, on its spot trading market on September 26, 2024. This listing coincides with the token’s generation event and a highly anticipated airdrop, marking a significant step for the popular Telegram clicker game. OKX has also set up a countdown page and planned several user engagement campaigns to build anticipation for the listing. The exchange previously listed HMSTR on its pre-market futures platform, offering 2x leverage to users.

Hamster Kombat announced the airdrop on August 28 after multiple delays since July, promoting it as the "largest airdrop in crypto history." The game's tokenomics reveal that 60% of the total token supply is allocated to users, potentially leading to significant selling pressure upon the token's release. As a result, there are concerns within the crypto community about the game's ability to maintain user engagement post-airdrop. Further details about available trading pairs will be released closer to the listing date.

Alchemy Acquires Romania-Based Web3 Infrastructure Firm Bware Labs to Expand into Europe

This controversy erupted when community members noticed that two wallet Alchemy, a leading Web3 infrastructure platform, has acquired Bware Labs, a Romania-based blockchain infrastructure and API services provider. Announced on August 29, 2024, the acquisition is part of Alchemy's strategy to expand into Europe and enhance its suite of blockchain services. Europe’s regulatory framework, particularly the MiCA rules, and its growing Web3 talent pool present opportunities for Alchemy to establish a strong market presence. Post-acquisition, Bware Labs’ Blast API and blockchain validator businesses will continue operations without disruption, integrating with Alchemy’s product offerings over the coming months.

However, Alchemy will not acquire the INFRA protocol, which underpins Bware’s ecosystem, including the Blast staking protocol. INFRA, with a total supply of 100 million tokens, will remain active on the Ethereum, Avalanche, and MultiversX blockchains. Bware’s team announced their departure as core contributors to the INFRA protocol, noting that API request functionalities have been deprecated. Participants in the testnet can still vest their tokens, but no further rewards will be issued.

Time Tokenization Platform Time.fun Secures $3M in Seed Funding Led by BH Digital Assets

Time.fun, a platform that tokenizes time, has raised $3 million in a Seed funding round led by BH Digital Assets, with additional participation from CB Ventures, Zee Prime Capital, Breed VC, Palm Tree Crypto, Advancit Capital, Maelstrom Fund, and notable individuals like Anatoly Yakovenko, Raj Gokal, and Santiago Roel. Time.fun allows creators, referred to as "timeholders," to monetize their time by offering 1-on-1 experiences such as meetings or messages to fans. As time holders provide more value, demand for their time increases, enhancing its value on the platform.

Fans can trade or redeem minutes of time, with timeholders earning ETH from these transactions. The platform also features timeholder-gated Telegram groups and a fund that rewards loyal fans, aiming to build an engaging and profitable ecosystem for both creators and fans. This innovative approach to time monetization creates a unique market where time becomes a tradable asset, encouraging deeper connections between stakeholders and their audience.

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