GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- 21.co Partners with Crypto.com for Bitcoin Liquidity Services

- Cointelegraph Sets Up HQ at Dubai’s DMCC Crypto Hub

- IMF Presses El Salvador to Reinforce Bitcoin Regulation

- U.S. Seizes $2.7M from North Korean Cybercriminals

- ZachXBT Calls Out Zion "Ansem" Thomas Over Alleged Memecoin Schemes

- Swift to Pilot Digital Asset Transactions in 2025

21.co and Crypto.com Partner to Enhance Bitcoin Liquidity for Wrapped BTC Products Across Ethereum and Solana Ecosystems 

On October 7, 2024, 21.co, the parent company of cryptocurrency asset manager 21Shares, announced a partnership with Crypto.com to provide enhanced Bitcoin liquidity for its Wrapped Bitcoin product (21BTC). The partnership is focused on expanding 21BTC's liquidity across the Ethereum and Solana ecosystems. 21.co is widely known for its subsidiary 21Shares, which offers various cryptocurrency exchange-traded funds (ETFs), including the ARK 21Shares Bitcoin ETF. This collaboration with Crypto.com is aimed at improving service offerings, allowing 21.co’s retail and institutional clients to better utilize their idle Bitcoin across multiple chains.

The companies also plan to collaborate on future product offerings, with Crypto.com President Eric Anziani noting that their platform's liquidity is critical to supporting innovative companies like 21.co. Furthermore, 21BTC is integrated with Chainlink’s proof of reserve to offer transparency to investors.While 21BTC is expanding its reach across Ethereum and Solana, the product remains unavailable in certain jurisdictions, including the United States.

Cointelegraph Establishes Regional Headquarters at Dubai's DMCC Crypto Centre, Amplifying Web3 Innovation

Cointelegraph has launched its regional headquarters at the Dubai Multi Commodities Centre (DMCC) Crypto Centre, a major hub for blockchain and crypto innovation. This strategic move allows Cointelegraph to connect with Dubai’s thriving Web3 ecosystem, enhancing its engagement with emerging blockchain projects and fostering new opportunities for startups. In addition to establishing its headquarters, Cointelegraph plans to host workshops and networking events aimed at supporting local startups and creating global opportunities for blockchain development.

This partnership also strengthens the Cointelegraph Accelerator program, with DMCC’s backing positioning the UAE as a launchpad for cutting-edge blockchain projects. By integrating more closely with the Web3 community in Dubai, Cointelegraph is poised to contribute significantly to the growth of the blockchain industry, further cementing the UAE’s status as a global leader in digital asset innovation.

IMF Urges El Salvador to Tighten Bitcoin Law and Strengthen Oversight Amid Reform Discussions

The International Monetary Fund (IMF) has advised El Salvador to tighten its Bitcoin law, reinforce oversight of the cryptocurrency, and reduce public sector exposure. This guidance comes as part of ongoing discussions between the IMF and El Salvador about the country's economic reform program. The IMF expressed concerns over Bitcoin's potential impact on financial stability, despite the nation's enthusiastic embrace of the cryptocurrency since 2021. IMF spokesperson Julie Kozack recommended narrowing the scope of El Salvador’s Bitcoin law and bolstering its regulatory framework.

The IMF also praised El Salvador’s proposed 2025 budget, but stressed the need for strong implementation to ensure fiscal stability. El Salvador, under President Nayib Bukele, became the first country to adopt Bitcoin as legal tender, launching initiatives like the Chivo Wallet and the Bitcoin City project. Despite the IMF's warnings, the government has continued to increase its Bitcoin holdings, with current assets of approximately 5,865 BTC, valued at over $356 million. The IMF remains engaged to help balance cryptocurrency use with economic reforms.

U.S. Seizes $2.7 Million in Cryptocurrency Tied to North Korean Hacks, Targeting Lazarus Group’s Laundering Efforts

The U.S. government has moved to seize $2.67 million in cryptocurrency linked to North Korean cybercriminals, particularly the notorious Lazarus Group. This seizure follows an investigation that traced stolen funds through crypto mixers like Tornado Cash. The illicit activities included $1.7 million in USDT from the Deribit hack and nearly $1 million in Avalanche-bridged Bitcoin from the Stake•com hack. Both sums were partially laundered before authorities intervened to freeze a portion of the funds. Investigators followed a trail of transactions that spanned multiple blockchains, involving several mixers like Sinbad and Yonmix.

The successful tracing of these funds highlights an increasing ability to detect and combat illicit crypto activities by state-backed hacking groups. The Lazarus Group, known for sophisticated cyber attacks, remains active, and this case underscores the ongoing threats posed by such entities. It also demonstrates the challenges regulators and law enforcement face in curbing the use of decentralized technologies for money laundering and other criminal activities.

ZachXBT Accuses Crypto Influencer Zion "Ansem" Thomas of Promoting Risky Memecoin "Pump and Dumps"

Blockchain investigator ZachXBT, also known as Zachary Wolk, has publicly accused crypto influencer Zion "Ansem" Thomas of promoting questionable memecoin "pump and dump" schemes. Wolk claims that Thomas, who has a significant following of 507,000, is endorsing low-cap Solana-based memecoins, potentially exposing his followers to financial risk. In response, Ansem defended himself by sharing his success with Dogwifhat, a token that surged from $100,000 to an eye-popping $4.8 billion.

Despite this, the accusations highlight the ongoing rift within the crypto community. Memecoin enthusiasts view these tokens as high-reward opportunities, while critics argue they are often insider-driven schemes that leave unsuspecting investors with heavy losses. This back-and-forth adds fuel to the debate about the legitimacy and ethics of memecoins in the broader crypto ecosystem, with many questioning where the line between opportunity and exploitation lies.

Swift to Begin Live Trials for Digital Asset and Currency Transactions in 2025, Engaging Banks Globally

Swift has announced it will start live trials for digital asset and currency transactions in 2025, marking a significant step toward integrating digital assets with traditional financial systems. The pilot program will engage banks from North America, Europe, and Asia, leveraging Swift’s existing network to enable seamless settlements across different platforms. This move is seen as part of a broader effort to address the current fragmentation of digital and traditional asset ecosystems. The trials follow successful blockchain experiments that demonstrated Swift’s ability to interlink public, private blockchains, and central bank digital currencies (CBDCs).

Swift's Chief Innovation Officer, Tom Zschach, highlighted that this initiative will bridge the gap between disconnected digital platforms, facilitating the coexistence of digital and fiat currencies. The trials are expected to have a profound impact as they explore global interconnectivity between digital and traditional assets. With 134 countries exploring CBDCs and tokenized assets projected to reach $30 trillion by 2034, Swift’s new infrastructure aims to offer financial institutions a single access point for transacting across multiple asset classes and currencies.

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