GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Bitcoin Falls 2% After Jim Cramer Backs Crypto

- WalletConnect Airdrops 50M Tokens in Season 1

- MARA Calls on U.S. to Bolster Bitcoin Holdings

- Court: Tornado Cash Sanctions Exceeded Treasury’s Authority

- HTX DAO Seeks Members for New Governance Committee

- Flashbots Unveils BuilderNet for Decentralized Ethereum Blocks

Bitcoin Drops 2% After Jim Cramer Recommends Crypto, Sparking "Inverse Cramer" Jokes

Bitcoin's price fell 2% to around $92,700 on Nov. 26, the same day CNBC's Jim Cramer advocated for cryptocurrencies as a portfolio hedge. On Mad Money, Cramer suggested Bitcoin, Ethereum, and other cryptos could protect against the U.S. government's $36 trillion deficit, stating, “Crypto deserves a spot in your portfolio.” Known for his often controversial investment advice, Cramer has become a meme, with the internet coining the "inverse Cramer" effect—suggesting outcomes opposite to his recommendations. Some users even joked online, asking Cramer to criticize crypto instead to improve its performance.

Bitcoin, which recently peaked at $99,571 on Nov. 23, has been cooling off after a strong rally. Despite his previous skepticism, Cramer admitted he still owns crypto, citing concerns about the national debt as a motivator. In earlier statements, Cramer had criticized cryptocurrencies, calling them valueless and advising investors to sell. However, he has since shifted his stance, acknowledging profits from crypto investments. Cramer’s mixed history with crypto has fueled both support and skepticism, with his latest remarks drawing significant attention amid Bitcoin’s ongoing price fluctuations.

WalletConnect Launches First Airdrop Season with 50 Million Tokens Allocated to Over 160,000 Users

WalletConnect has launched its first airdrop season, distributing 50 million WalletConnect Tokens (WCT) to over 160,000 eligible participants, including active users, contributors, and node operators. The airdrop is part of a 185-million-token plan, with a total WCT supply of 1 billion. Eligible users were required to create profiles, connect wallets, and engage in network activities before a cutoff date last month. A scoring system based on network usage, on-chain activity, and GitHub contributions determined qualification, ensuring fair distribution. Of the allocated tokens, 30 million were reserved for engaged users, while 20 million went to significant contributors. The tokens are initially non-transferable but can be staked for periods ranging from one week to two years, with staking rewards starting on Dec. 19.

WalletConnect also subsidized gas fees to minimize costs for participants, addressing network congestion and expense fluctuations. This open-source protocol allows seamless connections between crypto wallets and decentralized applications (dApps) using QR codes or deep links. By simplifying mobile-to-desktop interactions, WalletConnect enhances usability. With governance at its core, the airdrop encourages community involvement. Staking empowers users to influence future developments, aligning with WalletConnect's mission to bolster user engagement and decentralized innovation in the crypto ecosystem.

Crypto Miner MARA Urges U.S. to Act Swiftly in Global Bitcoin Accumulation Race

MARA Holdings, a leading crypto mining firm, has emphasized the urgency for the U.S. to secure a dominant position in Bitcoin and Bitcoin mining, framing it as a critical national security issue. The firm warns of an impending global race among nations to amass Bitcoin, particularly as de-dollarization gains momentum. Highlighting the U.S. holding over 200,000 Bitcoin compared to China's 190,000 BTC, MARA called for immediate action to ensure economic and geopolitical security. The company likened Bitcoin's strategic importance to gold, noting the U.S. holds 8,133 metric tonnes of gold versus China's 2,264 tonnes. MARA's recommendations include fostering domestic production of mining hardware to reduce reliance on Chinese suppliers like Bitmain and MicroBT, which dominate the market.

The plan also advocates establishing a U.S. Bitcoin strategic reserve, increasing investments in mining infrastructure, and providing legal clarity and incentives for miners and investors. CEO Fred Thiel underscored the threat of adversarial nations, such as China and Russia, gaining hashrate dominance, potentially manipulating Bitcoin transactions. The firm also pushed for the U.S. to lead global standards for decentralized networks to safeguard its blockspace share and influence in Bitcoin's evolving role as a geopolitical and financial tool. Founded in 2010 and headquartered in Fort Lauderdale, MARA operates primarily within the U.S., with facilities in Texas, North Dakota, and Nebraska, alongside ventures in Paraguay and Dubai.

U.S. Appeals Court Rules Treasury Overstepped in Sanctioning Tornado Cash

A U.S. Federal Appeals Court ruled that the Treasury Department's Office of Foreign Assets Control (OFAC) exceeded its authority by sanctioning the cryptocurrency mixer Tornado Cash. The decision reverses a lower court ruling, asserting that Tornado Cash’s immutable smart contracts are not “property” and cannot be sanctioned under the International Emergency Economic Powers Act (IEEPA). The Fifth Circuit Appeals Court stated that Tornado Cash's smart contracts, being lines of privacy-enabling software code, are neither ownable nor traditional services. The ruling invalidates OFAC’s August 2022 designation, which barred U.S. individuals and firms from interacting with Tornado Cash due to alleged ties to North Korea’s nuclear weapons program. Following the ruling, Tornado Cash’s governance token, TORN, experienced an 870% price surge, peaking near $35 before stabilizing at $16.7.

The lawsuit against the Treasury was brought by six plaintiffs, including Tornado Cash user Joseph Van Loon, who argued that the sanctions were inappropriate as Tornado Cash is merely a software, not a person or entity. The appeals court emphasized that the mixer remains accessible to anyone with internet access, undermining claims of its full control by sanctioned entities. Coinbase supported the plaintiffs, with Chief Legal Officer Paul Grewal hailing the verdict as a “historic win” for crypto and liberty. Legal experts like Consensys' Bill Hughes deemed the ruling robust and unlikely to be overturned by the Supreme Court. This landmark decision sets a precedent for the treatment of decentralized software under U.S. regulatory frameworks, marking a significant victory for privacy and decentralization advocates.

HTX DAO Opens Recruitment for New Governance Committee to Drive Sustainable Decentralized Development

HTX DAO has launched a global recruitment initiative for governance committee members to enhance decentralized operations and community engagement. Running from November 15 to December 4, the program seeks candidates with a passion for crypto and experience in governance or project management. The committee will operate across two major governance modules: the trading ecosystem and its functional areas. Members will specialize in tasks such as community governance—focusing on increasing member engagement and consensus-building—and brand building, aimed at enhancing HTX DAO’s visibility and fostering collaborations. A transparent selection process includes application reviews, community voting, and final announcements. Chosen candidates will be compensated with competitive pay and performance-based rewards.

The six-month rotation cycle ensures innovation and vitality within the team, with plans for greater community-driven flexibility in the future. The governance committee's establishment reflects HTX DAO's strategic vision to decentralize decision-making, strengthen community engagement, and promote democratic governance. By granting users more decision-making power, HTX DAO aims to foster collaboration and sustain its growth. HTX DAO, a blockchain-based decentralized autonomous organization, is focused on open finance and a tokenized economy. Through democratic governance led by HTX token holders, it strives to revolutionize blockchain applications and welcomes global participants to build an innovative future.

Flashbots Launches BuilderNet to Decentralize Ethereum’s Block-Building Process

Flashbots has launched BuilderNet, an initiative aimed at decentralizing Ethereum’s block-building process, currently dominated by a few operators building over 90% of blocks. This centralization raises concerns about fairness, censorship resistance, and the equitable distribution of profits from maximal extractable value (MEV). Block builders compile transaction bundles and submit them to validators for MEV extraction, which includes practices like arbitrage and front-running. Concentrated control in this process undermines Ethereum’s decentralization ethos. BuilderNet promotes collaboration among multiple operators to manage block-building duties collectively. Initial partners include block builder Beaverbuild and Ethereum client provider Nethermind.

The initiative employs a multi-operator system that enhances transparency and decentralization. Trusted execution environments (TEEs) are integral to BuilderNet, securing operations and ensuring encrypted order flows. This safeguards privacy and levels the playing field for MEV searchers and solvers, creating a fairer ecosystem. By neutralizing exclusive MEV order flow deals, BuilderNet bolsters Ethereum’s censorship resistance and accelerates decentralization for rollups and applications. Flashbots envisions a phased transition, initially collaborating with centralized builders before moving to a fully decentralized structure. The initiative aligns with Ethereum’s vision of decentralization, ensuring a more resilient and equitable blockchain infrastructure. BuilderNet’s ultimate goal is to enhance Ethereum’s rollups, apps, and overall network integrity while distributing MEV more fairly across participants.

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