GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Allianz Buys $750M in MicroStrategy Bonds

- Sui Teams Up with Franklin Templeton for Blockchain Growth

- Ethena’s ENA Soars on Deribit’s USDe Integration Plans

- Solana Surges to Record $264, Up 160% This Year

- FTX to Begin Creditor Payouts by March 2025

- Truemarkets Nets $4M in NFT Sale; Vitalik Buterin Buys $107K Worth

Allianz Insurance Acquires Nearly 25% of MicroStrategy’s $3 Billion Convertible Bonds 

Allianz Insurance, Europe’s second-largest insurer, purchased 24.75% of MicroStrategy’s 2031 convertible notes, making it the largest buyer in the $3 billion private offering. The bonds, valued at $750 million, were sold to institutional investors over three days. Allianz outpaced competitors like Calamos Investments, Context Capital Management, State Street, Fidelity Investments, and BlackRock to secure its position. This move reflects Allianz's confidence in MicroStrategy’s strategy and its indirect exposure to Bitcoin. MicroStrategy plans to use proceeds from the bond sale to increase its Bitcoin holdings, aligning with its long-term strategy under Michael Saylor.

The company recently acquired 51,780 BTC, raising its total holdings to 331,200 BTC, valued at over $32.6 billion after Bitcoin surpassed $99,000. Despite Allianz’s major purchase, MicroStrategy’s stock dropped 16% to $419 in the past 24 hours. However, the stock remains up by 18% in five days, 83% in the past month, and a staggering 473% year-to-date. Market commentators on X viewed Allianz's bond acquisition as a bullish signal for both Bitcoin and MicroStrategy. One noted this as a unique way for an insurance company to gain Bitcoin exposure without directly buying the asset. Dubbed the “most traded stock in America,” MicroStrategy continues to dominate headlines as institutional support for its Bitcoin-centric strategy grows, reflecting broader confidence in the cryptocurrency’s future.

Sui Partners with Franklin Templeton to Advance Blockchain Innovation Across Diverse Sectors

Sui has joined forces with Franklin Templeton Digital Assets to enhance its blockchain ecosystem and accelerate innovation. The collaboration aims to support developers within the Sui ecosystem while utilizing Franklin Templeton’s expertise in blockchain, digital assets, and investment strategies. Franklin Templeton has been engaged in blockchain since 2018, contributing through validator operations, research, and investment strategy development. The firm’s research team leverages tokenomics analysis, focusing on token supply and demand to shape projects and guide investments. Key projects benefiting from this partnership include DeepBook, a decentralized order book for DeFi trading; Karrier One, a decentralized mobile network solution; and Ika, a secure tool for cross-chain interactions.

These initiatives showcase blockchain's broad applications, from finance to telecommunications. This partnership builds on Sui's momentum in the financial sector. Earlier in November, VanEck listed its SUI exchange-traded note on Euronext Amsterdam and Paris, signaling growing institutional interest. Additionally, stablecoins like USDC have been integrated into the Sui network, bolstering its utility. The collaboration aligns with a broader trend of major financial institutions exploring blockchain technology. Grayscale’s launch of a dedicated SUI trust earlier this year further highlights the ecosystem’s potential. By leveraging Franklin Templeton’s deep expertise and supporting innovative projects, Sui aims to solidify its position as a leader in blockchain innovation and drive adoption across diverse industries.

Ethena's ENA Token Surges 13% as Deribit Prepares USDe Integration for Cross-Collateral Use

Deribit, a leading cryptocurrency derivatives exchange, announced plans to integrate Ethena's synthetic dollar, USDe, as rewarding margin collateral. This move, slated for early January 2025 pending regulatory approval, will allow users to hold USDe in a cross-collateral pool and earn rewards while using it as derivatives margin collateral. Ethena Labs founder Guy Young emphasized the significance of the integration, highlighting its potential to enable innovative structured product use cases previously unavailable with traditional stablecoin collateral. With Deribit dominating over 85% of the crypto options market, the platform is expected to become a pivotal venue for USDe applications across traditional finance and crypto trading entities.

The announcement triggered a 13% surge in Ethena's governance token, ENA, bringing it to an intraday high of $0.63. ENA has gained approximately 70% in the past 30 days, reflecting growing confidence in Ethena’s decentralized stablecoin protocol. USDe is a synthetic dollar backed by delta-hedging derivatives positions in perpetual and futures markets, offering a fully decentralized alternative to traditional stablecoins. Deribit’s integration follows similar adoptions by exchanges like Bitget and Gate, signaling growing interest in Ethena’s financial products. Ethena recently unveiled another stablecoin project, UStb (USTB), in collaboration with BlackRock and Securitize, underscoring its ambition to innovate in decentralized finance.

Solana Hits All-Time High on Coinbase Two Years After FTX Collapse

Solana (SOL) reached a record high of $264.31 on Coinbase on Nov. 22, marking a remarkable recovery from its December 2022 low of under $10 following the FTX collapse. The token surged 11% in a day, continuing its strong performance in 2024 with a 160% year-to-date gain. Momentum for Solana has been fueled by multiple recent filings for Solana-based spot exchange-traded funds (ETFs) by Bitwise, VanEck, 21Shares, and Canary Capital. Analysts predict SOL could reach $400 if it sustains this momentum and breaks past its previous all-time high of $260. Key drivers include Solana's growing popularity as a platform for minting memecoins and a 500% surge in decentralized finance (DeFi) activity on its network.

Total value locked in Solana’s DeFi ecosystem has risen to $8.8 billion this year, according to DefiLlama. The broader crypto market has also gained from favorable news, including SEC Chair Gary Gensler’s upcoming resignation in January and the promise of more crypto-friendly regulations under President-elect Donald Trump. These developments pushed total crypto market capitalization to an all-time high of $3.42 trillion. Other altcoins like XRP, Cardano (ADA), and Avalanche (AVAX) also saw double-digit gains, reflecting a bullish trend across the market. Solana’s impressive rally underscores the market’s renewed confidence in the blockchain, which has overcome setbacks from its association with the FTX fallout.

FTX Sets Timeline for Creditor Reimbursements Amid Ongoing Legal Battles

FTX's bankruptcy estate has outlined a timeline for reimbursing creditors and former customers, with payouts slated to begin in March 2025. Preparations for these reimbursements will commence in December 2024, as distribution agents manage the customer payout portal. The estate aims to finalize arrangements by January 2025, nearly three years after FTX’s collapse. John J. Ray III, the interim CEO overseeing the bankruptcy, stated that efforts are focused on maximizing recoveries and expediting payouts. Although a U.S. judge approved the FTX reorganization plan in October, not all creditors supported it. Concerns arose over payout calculations based on the petition date, when cryptocurrency prices were significantly lower.

For example, Bitcoin was valued at around $16,000 during the petition, compared to its current price of over $98,000. The FTX estate has intensified legal actions to recover assets, filing lawsuits against exchanges like KuCoin, Crypto.com, and Binance. These lawsuits target assets allegedly held by these platforms, including $50 million from KuCoin and $11 million from Crypto.com. The estate is also pursuing a $1.8 billion lawsuit against Binance and its founder, Changpeng Zhao, for alleged fraudulent transfers before FTX’s collapse. Additionally, it seeks to reclaim $100 million from Anthony Scaramucci and SkyBridge Capital for sponsorship and investment deals. Despite these legal challenges, the estate remains committed to restoring funds to creditors and customers as efficiently as possible. This process underscores the complexity and scale of recovering assets tied to FTX's downfall in 2022.

Truemarkets Raises $4M from NFT Sale, Attracting Ethereum Co-Founder Vitalik Buterin as a Buyer

Truemarkets, a markets-based media platform, raised $4.03 million through the sale of 15,071 Oracle Patron NFTs priced at 0.08 ETH ($250) each. The sold-out NFT sale reflects ongoing retail investor interest in decentralized prediction platforms, following the success of Polymarket. Ethereum co-founder Vitalik Buterin bought 400 NFTs for 32 ETH (about $107,000). Each Patron NFT holder will be eligible to claim 2,666.67 TRUE tokens during the platform's token generation event, with 40.3% of the 100 million TRUE token supply allocated to these holders. Truemarkets lets users wager on real-world events, utilizing AI and human oracles to enhance media content with market-driven insights.

The platform envisions attaching prediction markets to news and entertainment to deliver richer, data-backed narratives. Millie, Truemarkets’ project lead, expressed excitement over Buterin’s participation, emphasizing the validation it brings to their project: “Vitalik’s investment suggests we’re doing something right.” The NFTs are part of a larger ecosystem that includes Truth Seeker NFTs and other decentralized assets aimed at fostering user engagement and community-driven predictions. The launch coincided with a surge in Ethereum prices, which rose 8.7% to $3,351.32 on Nov. 21. The successful NFT sale, coupled with Buterin's involvement, highlights growing confidence in decentralized prediction markets and their potential to integrate seamlessly with digital media platforms.

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