GizmoLab Report: Cutting-Edge Developments in Web3 📈

Today’s key beats:

- Ronin Network Hit by $9.8M Exploit, White Hat Hacker Suspected

- Euro Stablecoin Market Grows Under MiCA

- Robinhood Halts 24-Hour Trading for 8 Hours

- Abu Dhabi Opens Blockchain Innovation Hub

- Metis Integrates Chainlink CCIP

- Coinbase Accused of Campaign Finance Violations

Ronin Network Exploited for $9.8M in ETH, White Hat Hacker Suspected to Return Funds

Ronin Network, a major gaming blockchain, lost 3,996 ETH ($9.8M) in an exploit, potentially by a white hat hacker, who may return the funds after exposing vulnerabilities. PeckShield identified the exploit, suggesting it was caused by a maximal extractable value (MEV) bot.

If verified, this ethical hack could lead to the safe return of the funds. Crypto hacks have surged in 2024, with July witnessing $266M in stolen assets across 16 attacks, highlighting the ongoing security challenges in the industry.

Euro Stablecoin Market Surges Under MiCA as French and Irish Fintech Companies Partner to Launch EURT

The euro stablecoin market is expanding under the new MiCA regulations. French fintech Next Generation and Irish EMI Decta are launching a euro-backed stablecoin, EURT, on the Stellar blockchain. This launch follows MiCA's initial stablecoin-focused regulations, which took effect on July 1, 2024. The new regulatory clarity has increased market predictability and investor interest.

Next Generation aims to address the $30 billion demand for euro-backed stablecoins, projecting significant growth for EURT. The activation of MiCA is anticipated to drive substantial growth in the euro-backed stablecoin sector, with predictions of reaching a market cap of 70 billion euros by 2026.

Robinhood Suspends 24-Hour Trades for 8 Hours Due to Blue Ocean ATS Risk Controls

Robinhood's 24-hour trading service, facilitated by Blue Ocean ATS (BOATs), was suspended from midnight to 8:00 am UTC on August 6. The suspension followed another alleged halt the previous day amid global market volatility. Robinhood's support announced the halt, stating that open trades would be routed for execution after eight hours.

BOATs has risk controls to prevent extreme price movements. The halt caused frustration among users, with some calling for regulatory scrutiny and claiming losses due to canceled trades. Robinhood has yet to comment on the latest suspension.

Abu Dhabi Launches Blockchain Center to Spearhead Global Innovation in Web3 Technology

The Abu Dhabi Blockchain Center has been inaugurated, aiming to position the region as a global leader in blockchain innovation. The center will support startups, enterprises, and academic institutions through its focus on incubation, venture capital, education, research and development, consultancy, and events.

It seeks to foster a thriving ecosystem for Web3 technology, offering mentorship, funding, educational programs, and expert consultancy. The center also aims to become a premier venue for industry events, promoting collaboration and showcasing blockchain advancements. CEO Abdulla Al Dhaheri envisions it as a global hub for blockchain innovation and education.

Metis Integrates Chainlink’s Cross-Chain Interoperability Protocol for Enhanced Cross-Chain Functionality

Metis, a leading Layer 2 network, has integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enhance cross-chain functionality. The integration, effective from August 8, enables seamless transfers and messaging for Chainlink’s LINK token between Metis and Ethereum, with plans to support additional blockchains and tokens.

This move is expected to boost cross-chain decentralized exchanges, lending protocols, and DAO-based governance within the Metis ecosystem. Metis aims to leverage CCIP for the growth of on-chain real-world assets. Despite a recent 25% price drop in METIS, the network ranks 12th among Ethereum Layer 2s by total value locked. Chainlink CCIP has facilitated $198 million in transfers and is gaining traction with major financial institutions.

Coinbase Faces Allegations of Campaign Finance Violations Amid Federal Contract Negotiations

Coinbase, the largest U.S.-based cryptocurrency exchange, is under scrutiny for alleged campaign finance violations. Public Citizen and Molly White filed a complaint to the Federal Election Commission, claiming Coinbase illegally donated $25.5 million to political action committees while negotiating a federal contract with the U.S. Marshals Service.

Coinbase’s chief legal officer, Paul Grewal, refuted the claims, asserting that the funds were not congressionally appropriated. The controversy emerges as crypto gains prominence in U.S. political discourse, with both Republican and Democratic figures expressing varying degrees of support for the industry.

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