GizmoLab Report: Cutting-Edge Developments in Web3 📈

Today’s key beats:

- Threshold Proposes to “Save” WBTC from Justin Sun

- FARI Solutions Presents Chain Reaction in Baku

- Hong Kong Grants Crypto License Past Deadline

- Nostr Usage Surges Amid Privacy Concerns After Telegram CEO Arrest

- Brazil Suspends X After Elon Musk Fails to Appoint Representative

- Legend of Arcadia Raises $4M in Seed Funding

Bitcoin DeFi Protocol Threshold Proposes Merge to “Save” Wrapped Bitcoin (WBTC) from Tron Founder Justin Sun 

Threshold, a Bitcoin DeFi protocol with a market capitalization of $212 million, has proposed a merger of its tBTC token with wrapped Bitcoin (WBTC) in response to concerns over the future custody of WBTC. This proposal comes after BitGo, the custodian of WBTC, announced a partnership with BiT Global, a company linked to Tron founder Justin Sun. The decision, aimed at diversifying WBTC’s geographical presence, has raised alarms due to Sun’s controversial reputation.

MacLane Wilkison, a representative of Threshold, argues that the merger would replace WBTC’s centralized custody model with Threshold’s decentralized custody and permissionless mint/redeem mechanism, ensuring user safety and maintaining trust in the asset. Wilkison emphasized the urgency of this action, noting there are less than 40 days to prevent potential risks associated with the current custody arrangement. Despite the proposal, Threshold’s native token, T, has remained stable. Justin Sun responded on social media, clarifying that his involvement with WBTC is purely strategic and that he does not control WBTC’s private keys or reserves, attempting to allay community concerns.

Chain Reaction 2024: FARI Solutions and Binance Bring Innovation in Web3 and Finance to Baku

FARI Solutions is thrilled to announce Chain Reaction, a groundbreaking event series that merges the latest innovations in Web3, crypto, AI, and blockchain. Taking place from September 10-11, 2024, in Baku, Azerbaijan, the event promises to be a hub of cutting-edge ideas and pioneering discussions. Powered by Binance, the world’s largest crypto exchange, Chain Reaction 2024 will feature speakers like Rachel Conlan and Vishal Sacheendran from Binance, alongside government officials and representatives from leading global companies. Notable attendees include Inara Valiyeva, Chairwoman of Azerbaijan’s Innovation and Digital Development Agency, and Fariz Jafarov, Executive Director of C4IR Azerbaijan.

The event coincides with the Formula 1 Azerbaijan Grand Prix, offering an exciting atmosphere for attendees. Participants will have the opportunity to engage with experts, participate in workshops, and explore transformative concepts in decentralized finance (DeFi), Web3, and tokenized assets. Chain Reaction aims to be a nexus of learning and networking, fostering discussions on sustainability and future technologies. Tech enthusiasts, crypto innovators, and industry newcomers are invited to join this unique event, which promises to shape the digital economy of tomorrow.

Hong Kong Digital Asset Xchange Secures License Despite Application Deadline

The Hong Kong Securities and Futures Commission (SFC) has granted a digital asset exchange license to Hong Kong Digital Asset Xchange (HKDAEx), even though the application was submitted after the May 31 deadline. HKDAEx, a member of the Hong Kong Financial Asset Exchange Group, applied for the license on August 27, according to the SFC. The regulator has the authority to return the application if it is found incomplete or has unresolved issues. HKDAEx aims to connect physical assets with digital assets to enhance liquidity and promote the real economy. Since June 1, operating an unlicensed virtual asset trading platform (VATP) in Hong Kong is a criminal offense.

Currently, only two platforms, OSL Digital Securities and Hash Blockchain, are fully licensed in Hong Kong. Several other exchanges, including Crypto.com and Matrixport HK, are still awaiting full licensing. Hong Kong is striving to establish itself as a global cryptocurrency hub, with advancements in digitalization and tokenization. According to the 2024 Henley Crypto Adoption Index, Hong Kong ranks second globally in cryptocurrency adoption, following Singapore. The city has created a favorable environment for crypto growth, driven by public interest and economic factors.

Nostr Platform Sees Fivefold Increase in Users Following Telegram CEO Pavel Durov’s Arrest Over Privacy Concerns 

The decentralized social media platform Nostr experienced a significant surge in users following the arrest of Telegram CEO Pavel Durov in France on August 25. Concerns about privacy and government overreach have driven users toward more privacy-focused alternatives like Nostr, which saw daily users peak at 20,000 on August 27, up from 9,000 before the arrest. The platform offers a censorship-resistant and decentralized protocol where users control their data and can engage in micropayments.

Durov's arrest, linked to illicit activities on Telegram, has heightened fears about government control over digital communication. Notable figures such as Paolo Ardoino and Edward Snowden have voiced concerns over the implications for free speech. Amid growing anxiety over privacy, the use of Nostr and other privacy-focused platforms like Protonmail has increased. This trend reflects a broader shift toward safeguarding digital privacy against state surveillance and tech company exploitation.

Brazilian Supreme Court Suspends X Following Elon Musk’s Refusal to Appoint Legal Representative Amid Misinformation Investigation

A Brazilian Supreme Court justice has ordered the suspension of social media platform X in Brazil after Elon Musk failed to appoint a legal representative for the company by the August 29 deadline. Justice Alexandre de Moraes initiated the suspension due to X’s non-compliance with an order amidst ongoing investigations into the spread of misinformation related to former Brazilian President Jair Bolsonaro. Musk has openly criticized Moraes, calling him "evil" and accusing him of "illegal political censorship."

Despite the suspension order, Brazilian users reported continued access to the platform as of the publication date. The suspension follows other actions by Brazilian authorities, including a freeze on Starlink's finances in the country, a subsidiary of Musk’s SpaceX. With over 20 million users in Brazil, the future of X's operations in the country remains uncertain.

Legend of Arcadia Secures $4 Million in Seed Funding for Multi-Chain Web3 Strategy Card Game 

Legend of Arcadia, a multi-chain, free-to-play, and play-to-earn strategy card game, has raised $4 million in a Seed funding round from investors including Animoca Brands, OKX Ventures, Arche Fund, and Selini Capital. This Web3 GameFi 2.0 platform combines traditional gaming elements with blockchain technology, allowing players to collect and enhance toy-like humanoid creatures known as "toy heroes."

Players can increase their in-game earnings through various activities such as staking, battling, and mining. With 8 different classes and 6 factions of toy heroes, the game offers a dynamic and immersive experience. Legend of Arcadia aims to merge casual gaming with the financial incentives of GameFi, providing both entertainment and the opportunity to earn in-game rewards.

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