GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Ethereum’s Justin Drake Exits EigenLayer, Cites Conflict of Interest

- Celebs Face Backlash for Questionable Crypto Endorsements

- Strive Adds Bitcoin to Standard American Portfolios

- Hoskinson Eyes Nintendo Emulator on Cardano’s Hydra

- Midnight Unveils Cross-Platform Game on Aptos Blockchain

- Analyst Warns Ethereum Could Fall by 40% to $1,551

Justin Drake of Ethereum Foundation Resigns from EigenLayer Advisorship Amid Conflict of Interest Controversy, Reaffirms Commitment to ETH Development 

Ethereum Foundation researcher Justin Drake announced his resignation from his advisory role at the Eigen Foundation, the organization behind the EigenLayer restaking protocol, in a November 2 social media post. The decision follows controversy stemming from Drake's acceptance of this position in May 2024, which sparked significant backlash within the Ethereum community due to potential conflicts of interest. Drake stated that he stepped down in September, renouncing not only his role at Eigen but also his membership on the Ultra Sound team, as part of a broader personal policy to avoid advisory roles, angel investments, and other commitments that might compromise his impartiality.

His exit aligns with a new Ethereum Foundation conflict-of-interest policy that emerged in response to the controversy. Drake explained that, moving forward, his focus would remain on Ethereum's core layer-1 development, especially the consensus layer. The situation escalated further when fellow Ethereum Foundation researcher Dankrad Feist also joined EigenLayer’s advisory, intensifying community concerns. These developments have raised broader questions regarding restaking protocols like EigenLayer, which allow investors to multiply yields on digital assets by staking them multiple times, despite potential security and governance risks.

Celebrities Like MrBeast, Andrew Tate, and Kim Kardashian Face Scrutiny for Controversial Crypto Endorsements Linked to Alleged Pump-and-Dump Schemes

High-profile influencers and celebrities, including MrBeast, Andrew Tate, and Kim Kardashian, have recently come under fire for their involvement in alleged crypto "pump-and-dump" schemes, where they promoted digital tokens only to later sell at inflated prices, leaving fans with significant losses. MrBeast reportedly profited millions by promoting low-cap tokens, while Logan Paul’s CryptoZoo NFT game fell apart, leading to allegations of investor deception. Kardashian faced a $1.26 million fine from the SEC for promoting EthereumMax (EMAX) without disclosure, while Floyd Mayweather and DJ Khaled paid fines for promoting fraudulent ICOs.

Soulja Boy and Lindsay Lohan also faced SEC charges for promoting TRON and BitTorrent tokens without appropriate disclosures. Jake Paul, linked to SafeMoon and Save the Kids, has denied wrongdoing despite backlash. More recently, YouTuber Coffeezilla accused Andrew Tate of promoting failing meme coins, highlighting Tate’s shifting stance on crypto and stirring debate over celebrity accountability in digital asset markets. This surge in celebrity-led crypto promotions has sparked calls for regulatory scrutiny and underscored the risks of following high-profile financial endorsements.

Strive Enterprises Launches Wealth Management Arm to Integrate Bitcoin into Everyday Portfolios, Eyeing Financial Freedom for Americans

Strive Enterprises, an asset management firm co-founded by former presidential candidate Vivek Ramaswamy and businessman Anson Frericks, has launched a new wealth management division aimed at integrating Bitcoin into traditional investment portfolios. The initiative follows a $30 million Series B investment round led by Cantor Fitzgerald, a financial firm known for its backing of Tether and whose CEO, Howard Lutnick, is a strong Bitcoin advocate. Strive’s move is part of a broader strategy to position Bitcoin as a hedge against rising global debt, inflation, and potential monetary restrictions.

CEO Matt Cole emphasized the division’s goal of offering clients “true financial freedom” through Bitcoin’s inclusion, setting it apart from major industry players. The launch also coincides with Strive’s planned relocation from Columbus, Ohio, to Dallas, Texas. With its anti-ESG stance, Strive aims to prioritize shareholder value and holds $1.7 billion in assets under management. The company’s shift toward Bitcoin aligns with increased institutional interest in spot Bitcoin ETFs, which have seen record inflows, bolstered by both retail and institutional investors.

Cardano Founder Charles Hoskinson Teases Nintendo Emulator on Hydra After Successfully Running Doom, Signaling New Era for Cardano’s Blockchain Ecosystem

Cardano’s founder Charles Hoskinson has hinted at the next innovation for Cardano’s Hydra layer-two (L2) solution: running a Nintendo emulator. This follows a successful demo where developers managed to run the classic game Doomon Hydra, showcasing the platform's potential for handling complex interactions via smart contracts that track every in-game action as a transaction. Expanding on this, Hoskinson stated that Hydra will soon attempt to support Nintendo and Super Nintendo games, marking a novel foray into gaming for the Cardano blockchain.

In parallel, Cardano recently announced a collaboration with BitcoinOS (BOS) to enhance its DeFi sector by bridging Bitcoin’s liquidity, expanding cross-chain functionality. BOS will enable Cardano developers and users to securely access Bitcoin assets through Grail bridge, strengthening Cardano’s cross-chain compatibility. Hydra’s off-chain processing powers rapid parallel transactions, potentially setting Cardano apart in decentralized finance. Currently, Cardano (ADA) ranks as the 11th largest crypto asset, with market performance showing a recent uptick despite weekly losses.

Trump's Presidential Odds Slip Over 10% on Prediction Markets as French 'Whale' Investor Denies Political Ties

With the upcoming U.S. presidential election drawing closer, Donald Trump’s odds of winning on prediction platforms such as Kalshi and Polymarket have declined significantly, dropping over 10% from their peak values earlier in the year. ElectionBettingOdds.com reports that Trump's chances have decreased by an average of 3.8% across all platforms, with Polymarket showing a dip from a high of 71.5% in July to 59.1% recently, while Kalshi, which became available on October 4, has seen Trump’s odds slide from 65.2% to 55%. As polls indicate his opponent, Kamala Harris, gaining momentum in key swing states, political observers are closely monitoring these trends for potential election outcomes.

Notably, Théo, a French investor who has made substantial bets favoring Trump’s success, denied having any political agenda in an interview with the Wall Street Journal. Théo, who previously worked as a trader in the U.S., claims his $30 million investment is based purely on an analysis of the polling environment, which he believes underestimates Trump’s support, and maintains he has no connections to any political campaign. Should Trump win, Théo’s payoff could reach $80 million, over double his original investment, underscoring the high stakes of his wager. Meanwhile, Harris has made notable gains on Polymarket, especially in states like Wisconsin and Michigan, which are crucial to her victory path. Political analysts continue to watch early voting patterns and polling trends, with Harris holding strong leads in certain demographics, including Puerto Rican voters in Florida.

Peter Brandt Predicts Ethereum Price Could Drop by 40% Amid Rising Exchange Reserves and Declining Market Share

Ethereum is facing significant pressure in the market, with prices hovering around $2,550 as of November 1, down 37% from its peak earlier this year. According to renowned analyst Peter Brandt, there is a high likelihood that the cryptocurrency could experience a further decline, potentially dropping to $1,551, representing a 40% decrease from current levels. This bearish outlook comes amid rising exchange reserves and a stall in demand for Ethereum spot ETFs, with cumulative outflows reaching $480 million compared to Bitcoin’s impressive $24 billion inflows. Additionally, Ethereum has seen a loss in its market share within the decentralized finance (DeFi) sector, particularly with platforms like Solana surpassing Ethereum in trading volume, as Solana's decentralized exchanges (DEXs) recorded $51 billion in October compared to Ethereum’s $42 billion.

The upcoming launch of Uniswap’s Unichain layer-2 blockchain may exacerbate Ethereum’s market share challenges, further undermining its dominance. Data shows that the Ethereum Foundation and prominent figures like Vitalik Buterin have reportedly started selling off tokens, contributing to increased exchange volumes. Furthermore, Ethereum's control over the stablecoin market has diminished from over 60% to approximately 48%, with competitors like Tron and BNB Smart Chain gaining ground. Brandt's analysis indicates that Ethereum is currently trading below its 50-day moving average and critical support levels, including the neckline of a double-top pattern at $2,817. The formation of a bearish pennant pattern suggests a potential breakout could occur in the coming weeks, with the next key level to monitor being $2,117, its lowest point in early August. As these trends unfold, investors are advised to remain vigilant regarding Ethereum's market movements and broader economic conditions.

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