GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Child sells memecoin early, missing out on millions

- Bernstein names Robinhood top "crypto deregulation trade

- MicroStrategy ups note sale to $2.6B for Bitcoin buys

- Acurx Pharmaceuticals Invests $1M in Bitcoin Reserves

- Grayscale Executes Reverse Splits for Bitcoin, Ethereum ETFs

Child earns five figures selling memecoin launched on Pump.fun but misses out on millions as token’s value skyrockets.

A young developer launched a Solana-based memecoin on Pump.fun, selling their entire holdings for a five-figure profit during a livestream. However, the token’s value surged shortly afterward, briefly reaching a market cap of over $100 million. Crypto enthusiasts in the community “CTO’d” the project, effectively taking over its technical direction and driving the meteoric price increase. The developer’s remaining holdings would now be worth over $2.5 million if retained. However, the community’s engagement likely influenced the token’s dramatic rise, meaning the original creator might not have achieved such a valuation independently. In a surprising twist, the child created two additional memecoins, selling them again for modest five-figure gains.

The rapid success of their initial project, however, sparked community-led initiatives, including creating derivative tokens and even doxxing alleged family members. The memecoin frenzy extends beyond this story, with tokens like Just a Chill Guy (CHILLGUY) reaching a market cap of $300 million before settling at $215 million. Speculative enthusiasm has also surged following Donald Trump’s pro-crypto election win, driving the value of tokens like Dogwifhat and Pepe to new highs after Coinbase listings and the emergence of memefunds. Despite this renewed activity, crypto market intelligence platform IntoTheBlock notes that current memecoin interest still lags behind previous cycles, suggesting retail participation has not yet fully returned to the space.

Bernstein elevates Robinhood to top "crypto deregulation trade" following Trump victory, raising price target to $51

Bernstein analysts have designated Robinhood as the leading "crypto deregulation trade" after Donald Trump’s presidential election win and the Republican sweep in Congress. The brokerage firm upgraded its price target for Robinhood (HOOD) to $51, citing the anticipated benefits of pro-crypto policies under the new administration. Trump’s campaign promises, including creating a national Bitcoin reserve and ending restrictive crypto regulations, are expected to provide significant tailwinds for the industry. Bernstein analysts believe Robinhood, which has operated a constrained crypto business thus far, will emerge as the biggest beneficiary. Currently, Robinhood offers limited services compared to competitors, listing just 15 tokens and generating no revenue from staking, lending, or derivatives. However, a potentially more pro-crypto SEC could allow the company to expand its offerings, including adding new token listings and non-trading crypto products, by 2025.

Bernstein increased its 2025 revenue projection for Robinhood to $4.19 billion, up from $3.85 billion, driven by growing market share and new crypto-related revenue streams. Analysts predict Robinhood’s crypto division will contribute 38% of total revenue by 2025, spurred by regulatory clarity on digital asset classification. Robinhood recently added SOL, ADA, XRP, and PEPE to its platform following the election results, signaling its intent to narrow the gap with larger competitors. Analysts also view Robinhood's planned $200 million acquisition of Bitstamp as a potential catalyst for European expansion. Robinhood shares have surged 176% year-to-date, with pre-market trading suggesting further upside. Bernstein's optimism hinges on the incoming administration’s commitment to overhaul crypto regulations and the firing of SEC Chair Gary Gensler.

MicroStrategy boosts note sale to $2.6 billion for Bitcoin purchases, fueling optimism for BTC hitting $100,000

MicroStrategy has increased its note sale offering from $1.75 billion to $2.6 billion, highlighting its bullish stance on Bitcoin. The funds, raised through 0% interest senior convertible notes, are earmarked for acquiring additional Bitcoin and supporting general corporate purposes. The offering, aimed at qualified institutional buyers, could rise to $2.97 billion if initial purchasers exercise their option to acquire more notes. The sale is set to close on November 21, pending standard conditions. Bitcoin’s price has surged over 37% in the past month, trading above $93,970 as of now. Analysts predict the influx of funds from MicroStrategy and favorable Bitcoin ETF inflows could drive the cryptocurrency past the $100,000 mark for the first time in history.

U.S. spot Bitcoin ETFs have recorded $816 million in net inflows on November 19, marking six consecutive weeks of positive activity. The total inflows during November have exceeded $1.67 billion, showcasing robust investor confidence. MicroStrategy’s move comes amid heightened post-halving enthusiasm, with analysts like Ryan Lee from Bitget Research anticipating a 14.7% price rise needed to hit the milestone. He also highlights the supportive trend of institutional adoption and regulatory advancements. The company remains the largest corporate holder of Bitcoin, cementing its role as a key player in the cryptocurrency ecosystem. Its bullish activity underscores growing expectations for Bitcoin’s long-term value and adoption in mainstream markets.

Acurx Pharmaceuticals Allocates $1 Million to Bitcoin Reserves Amid Growing Institutional Interest

Acurx Pharmaceuticals, a biopharmaceutical firm specializing in antibiotics, has approved a $1 million Bitcoin purchase to diversify its treasury strategy. The move aligns with increasing institutional acceptance of Bitcoin as a reserve asset. CEO David P. Luci described the investment as a financial maneuver to utilize cash not required for immediate operations over the next 12–18 months. He cited Bitcoin ETFs and growing governmental and institutional support as key factors in the decision. The initiative reflects a broader corporate trend toward exploring digital assets but does not mark a shift in Acurx’s primary focus on drug development. The company is advancing antibiotics for challenging Gram-positive bacterial infections, including treatments for MRSA and C. difficile. Acurx acknowledges the risks of cryptocurrency volatility but sees Bitcoin as a valuable addition to its diversification strategy. '

The company maintains a $5.8 million cash reserve despite reporting a Q3 net loss of $2.8 million. Recent developments include securing a patent for ibezapolstat, their lead drug candidate, extending protection to 2042. Acurx also presented favorable Phase II trial results for the treatment of C. difficile at the Anaerobe Society Congress. Future plans involve Phase III trials across 150 sites and regulatory discussions with European authorities in early 2025. The company is also advancing a diagnostic tool to predict C. difficile reinfections. Although Acurx faces financial challenges, its decision to invest in Bitcoin signals confidence in the cryptocurrency’s potential while supporting its treasury management strategy. The move comes amid volatile stock performance, with ACXP down 56.4% year-to-date.

Grayscale Completes Reverse Share Splits for Bitcoin and Ethereum ETFs, Driving 5x and 10x Price Increases

Grayscale Investments has completed reverse share splits for its Bitcoin Mini Trust ETF and Ethereum Mini Trust ETF, resulting in significant price increases for each. The Bitcoin ETF saw a 5x rise in share price, while the Ethereum ETF experienced a 10x increase, effective Nov. 19. The reverse share splits aim to enhance trading cost-efficiency, reducing the number of outstanding shares while proportionately raising the price per share. Grayscale assured shareholders their holdings remain unchanged, with fractional shares being tracked and handled by the depository trust company. For Bitcoin ETF shareholders, every five pre-split shares were converted into one post-split share, reflecting a fivefold price increase. Similarly, Ethereum ETF shareholders received one post-split share for every 10 pre-split shares, reflecting a tenfold price rise. Grayscale emphasized that the move aligns with feedback from investors seeking cost-effective trading mechanisms. The changes are automatic, requiring no action from shareholders.

Fractional shares created during the split will be aggregated and sold, with proceeds distributed proportionally. This strategic adjustment highlights Grayscale's commitment to evolving its product suite to meet investor needs. The initiative also underscores the broader acceptance and maturation of cryptocurrency investment vehicles like ETFs. At pre-market trading, the Bitcoin Mini Trust ETF is priced at $41, while the Ethereum Mini Trust ETF stands at $2.90. These changes will impact the trading dynamics of both ETFs starting Nov. 20. Reverse share splits, often employed to improve cost-efficiency and perception, are not uncommon in traditional and crypto markets. Grayscale's move demonstrates a continued effort to refine its offerings as crypto investments gain traction among institutional and retail investors.

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