GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Aptos Foundation Partners with Nvidia-Backed Ignition AI

- Bernstein Sets $50K Bitcoin Estimate for Harris Win, $80-90K for Trump

- Coinbase Allegedly Demands $300M in Token Listing Fees, Sun and Cronje Claim

- Kraken Launches Licensed Crypto Derivatives Service in Australia

- Deutsche Telekom and Bankhaus Metzler Launch Renewable Bitcoin Mining Trial

- Strive Launches Bitcoin-Focused Wealth Management Unit

- Deribit and SignalPlus Unveil $200K Winter Trading Contes

Bernstein Raises Bitcoin Price Estimate to $50,000 for Harris Win, Keeps Trump Projection at $80,000-$90,000, with $200,000 Target by 2025 

Bernstein analysts have projected that Bitcoin’s price could reach as high as $200,000 by the end of 2025, regardless of the U.S. election outcome. However, in the short term, they anticipate differing impacts based on the winner: a Trump victory, seen as a pro-crypto stance, could push Bitcoin to $80,000-$90,000, while a Harris win might trigger a drop to around $50,000. Trump is widely perceived as more crypto-friendly, whereas Harris, although supportive of ownership, is expected to maintain the Democrats' hawkish regulatory stance toward digital assets. Bernstein also notes that U.S. fiscal policies, including high debt levels and expanding monetary policies, continue to bolster demand for Bitcoin as a “hard asset.” This demand could see further boosts from Bitcoin’s ETF adoption, which is accelerating. Notably, Polymarket odds show Trump leading Harris by 57.9% to 42.1%, a margin that has narrowed following recent polls and a drop in Bitcoin from $73,500 on October 29 to $68,596. Swing state polling remains volatile, with Harris taking brief leads in Pennsylvania and Wisconsin, while Trump maintains an edge in Arizona, Georgia, and Nevada. National polling data shows a tight race, with Harris holding a narrow 1% lead, within the margin of error.

Despite the election uncertainties, Bernstein analysts maintain that the fundamental demand drivers for Bitcoin, including interest in decentralized financial assets and blockchain innovations, will support long-term growth. In terms of other cryptocurrencies, some analysts suggest a Harris win could benefit Ethereum, especially if the current regulatory environment restricts competition for Ethereum-based ETFs. However, Bernstein disagrees with a “zero-sum” view, arguing that favorable regulations could support the broader crypto market. Beyond Bitcoin, a pro-crypto policy could stimulate growth in blockchain utilities, especially in sectors like asset tokenization and stablecoin issuance, as bipartisan support for constructive regulation is essential. Finally, the impact of U.S. policies on Bitcoin mining is significant, as pro-mining policies may attract further investment, given mining's connection to domestic production and its role in supporting AI computing needs.

Coinbase Faces $300M Token Listing Fee Allegations by Sun and Cronje, Prompting Concerns Over Shift to Decentralized Exchangesng to Drive Sustainable Blockchain Solutions through Regenerative Finance

Coinbase is under scrutiny following allegations by Tron founder Justin Sun and Fantom founder Andre Cronje, claiming the exchange demanded significant fees for token listings. Sun alleged that Coinbase requested a $250 million Bitcoin deposit and 500 million TRX tokens (valued at $80 million) to list TRX, despite Coinbase’s previous statement that asset listings are free. Cronje reported similar experiences, stating that Coinbase quoted listing fees ranging from $30 million to $300 million for Fantom’s FTM token. Coinbase CEO Brian Armstrong has denied these claims, reiterating that Coinbase does not charge for listings.

The controversy has sparked wider discussions in the crypto community, with some experts like Simon Dedic, CEO of Moonrock Capital, suggesting that excessive listing fees on centralized exchanges (CEXs) could drive projects to decentralized exchanges (DEXs), which offer greater accessibility and avoid high costs. According to 0XScope research, DEX volumes have significantly increased, with monthly trading volumes surpassing $250 billion in both March and June. The share of DEX trading volumes relative to CEXs also continues to grow, reaching 13.6% as of October. Crypto trader Michaël van de Poppe believes such high fees threaten projects and are likely to push more developers and traders toward DEXs. As concerns grow over centralized exchange practices, some believe a DEX-led shift in the crypto market may be inevitable.

Kraken Enters Australian Crypto Derivatives Market with New Licensed Broker Service for Wholesale Investors

Kraken, a prominent cryptocurrency exchange, has launched a licensed brokerage service in Australia, focusing on crypto derivatives for wholesale investors and large-scale clients. This move enables eligible Australian clients to trade crypto-based derivatives—financial products tied to the price movements of cryptocurrencies without requiring direct ownership. The service, accessible via the Kraken Pro app, offers diverse collateral options, including fiat, stablecoins, and cryptocurrencies, and provides risk management tools designed to cater to sophisticated trading strategies. Kraken’s entry into the Australian derivatives market underscores its commitment to regulatory compliance, with Jonathan Miller, Kraken’s general manager for Australia, emphasizing the importance of catering to institutional clients seeking licensed trading solutions.

This initiative may also position Kraken to handle potential liquidity inflows as institutional interest in crypto assets grows in Australia. However, Kraken cautions investors about the high risks involved in crypto derivatives trading, where potential losses can exceed initial investments. This development aligns with Kraken’s recent expansions, such as the upcoming launch of its “Ink” blockchain in 2025, aimed at supporting decentralized finance (DeFi) by enabling direct token trading, borrowing, and lending without intermediaries. With Ink, Kraken seeks to simplify DeFi and foster greater access to Web3 for a broader audience, signaling the exchange’s strategic shift toward decentralization

Deutsche Telekom’s Subsidiary Teams Up with Bankhaus Metzler for Renewable-Powered Bitcoin Mining Pilot to Help Stabilize Germany’s Energy Grid

Deutsche Telekom’s subsidiary, MMS, has partnered with Germany’s second-oldest bank, Bankhaus Metzler, to pilot a Bitcoin mining project powered by surplus renewable energy. This initiative aims to leverage excess renewable power that would otherwise go unused due to grid limitations and insufficient storage, potentially contributing to energy grid stability in Germany. The mining operations, hosted by Metis Solutions at Riva GmbH Engineering in Backnang, rely on photovoltaic energy sources, with MMS managing the infrastructure and Bankhaus Metzler assessing financial applications for cryptocurrency. The pilot, announced on Nov. 4, is expected to yield valuable field data to inform future projects.

Deutsche Telekom emphasized that Bitcoin mining could play a key role in balancing energy supply and demand, especially as renewable energy sources contribute increasingly variable power levels to the grid. Oliver Nyderle, Deutsche Telekom MMS’s head of digital trust and Web3 infrastructure, noted the rising need for quickly accessible regulating power due to renewable energy fluctuations. Hendrik König, head of digital assets at Bankhaus Metzler, highlighted the project’s objective of gaining practical experience in blockchain applications, stressing the growing importance of blockchain across sectors outside finance. The initiative represents a strategic step towards integrating blockchain with energy management, as blockchain’s role continues to expand in operational applications.

Strive Enterprises Launches Wealth Management Division, Offering Bitcoin Integration as Hedge for Client Portfolios

Strive Enterprises, co-founded by former U.S. presidential candidate Vivek Ramaswamy, announced the launch of a new wealth management division integrating Bitcoin into client portfolios. The firm, which aims to offer "true financial freedom," sees Bitcoin as a hedge against long-term risks including global debt, inflation, and restrictive monetary policies. CEO Matt Cole highlighted that Strive’s approach distinguishes it from other wealth managers, who often avoid Bitcoin in traditional portfolios. The new unit, unveiled on Nov. 1, will be led by Gary Dorfman, an ex-Bernstein executive, and Randol Curtis, formerly of Morgan Stanley.

Strive's corporate headquarters will also move to Dallas, Texas, with most Columbus-based staff expected to relocate by March 2025. The wealth management arm’s launch follows a successful $30 million Series B funding round, led by Cantor Fitzgerald, a Bitcoin-supportive firm, pushing Strive’s total assets under management to $1.7 billion since its August 2022 debut. Ramaswamy, previously a Republican candidate, voiced support for Bitcoin as a component of financial independence and expressed his frustration with traditional wealth managers’ reluctance to adopt it. The announcement arrives amid heightened interest in Bitcoin as a hedge and just days before the U.S. presidential election on Nov. 5, in which Ramaswamy's influence remains relevant due to his prior candidacy.

Deribit and SignalPlus Launch $200,000 Winter Trading Competition, Offering Cash Prizes, Tech Rewards, and Learning Opportunities for Crypto Enthusiasts

Deribit, a top crypto options exchange, has partnered with SignalPlus to kick off the Winter Trading Competition 2024, promising a prize pool of $200,000 USDC alongside tech gadgets, cash bonuses, and even travel rewards. The contest runs from November 4 to December 9, 2024, and invites retail participants to trade cryptocurrency options, futures, and spot products via SignalPlus, a leading trading and analytics platform. The event is designed to help participants enhance trading skills through competition and includes unique bonuses, such as a special US Election Option for traders who register by November 5. Open to both individuals and teams, the competition offers varied incentives: the top 35 individual traders will earn prizes, with the highest scorer receiving up to 5,000 USDC, while the top five teams will be awarded cash prizes ranging from 1,000 to 5,000 USDC. In addition, daily draws will see 111 traders winning cash rewards, and one team member will win a luxury trip to Thailand each day.

The event also features a referral program, enabling participants to earn up to 10,000 USDC by inviting friends to join the competition. Participants benefit from an educational experience as well, with six master-level AMAs and training sessions on Deribit’s platform hosted by industry experts. These sessions aim to elevate trading strategies, offering insights into risk management, market analysis, and options trading. Deribit’s CEO, Luuk Strijers, noted the success of last year’s event and the expanded scope for 2024, with more rewards and learning opportunities to engage a global audience. SignalPlus’s Co-Founder, Chris Yu, emphasized that the event combines SignalPlus's advanced trading technology with Deribit’s robust platform to create a dynamic environment for participants, pushing the limits of crypto options trading. The Winter Trading Competition promises not only high-stakes prizes but also a prestigious recognition program, with winning individuals and teams receiving honorary certificates and trophies.

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