GizmoLab Report: Cutting-Edge Developments in Web3 📈

A Quick TL;DR:

- MicroStrategy Buys 18,300 BTC for $1.11 Billion

- Kraken Requests Jury Trial to Challenge SEC Allegations

- Raydium Launches Burn-and-Earn for Liquidity Locking

- Tada Introduces TON Crypto Payments for Singapore Rides

- Sky Proposes WBTC Offboarding Amid Justin Sun Concerns

- Titan Network Secures Seed Round to Decentralize Cloud Services

MicroStrategy Bolsters Bitcoin Holdings with $1.11 Billion Purchase of 18,300 BTC, Now Owning Over 1% of Total Supply 

MicroStrategy has purchased an additional 18,300 Bitcoin for $1.11 billion, paying an average price of $60,408 per BTC. This acquisition boosts its total holdings to 244,800 BTC, valued at an aggregate purchase price of $9.45 billion. The firm now controls over 1% of Bitcoin’s 21 million supply cap. The recent buy follows earlier acquisitions of 12,000 BTC in June and 9,245 BTC in March, making 2024 a big year for MicroStrategy’s crypto strategy.

To fund its purchases, the company is raising up to $2 billion by selling Class A shares, although it hasn’t disclosed how much will go toward future Bitcoin buys. This marks the latest move in MicroStrategy's long-standing Bitcoin allocation strategy, which began in 2020. The company’s continued investments are driven by its belief in Bitcoin’s long-term value. Following this news, MicroStrategy’s shares saw a 0.3% rise in pre-market trading.

Kraken Seeks Jury Trial to Contest SEC’s Claims of Operating as Unregistered Securities Exchange

Kraken has formally requested a jury trial in response to the U.S. Securities and Exchange Commission's (SEC) lawsuit, accusing the exchange of operating as an unregistered securities exchange. Filed on September 12, Kraken's court submission challenges the SEC’s authority, stating that the digital assets on its platform are not securities or investment contracts. Kraken claims the SEC's approach lacks due process and fails to specify which transactions violate securities laws.

Despite Kraken's engagement attempts, the SEC has maintained its stance, mirroring its actions against Binance and Coinbase. The exchange insists that all relevant issues be decided by a jury. This legal move follows a California judge’s decision allowing the SEC’s case against Kraken to proceed. The lawsuit involves more than 10 tokens, including Cardano, Algorand, and Solana, which the SEC alleges are unregistered securities.

Raydium Introduces Burn-and-Earn Feature for Coin Creators to Permanently Lock Liquidity and Earn Trading Fees

Raydium, the top decentralized exchange (DEX) on Solana, has launched a new Burn-and-Earn feature targeting token creators. This innovative offering allows teams to permanently lock their liquidity while still earning trading fees from their positions. The initiative aims to boost investor confidence by preventing large token holders from withdrawing liquidity and potentially causing a "rug pull."

By locking liquidity in Raydium’s Concentrated Liquidity Market Maker (CLMM), teams can enhance capital efficiency by deploying liquidity at specific price points. Raydium’s native token, RAY, saw a 3% rise to $1.51, continuing its impressive 800% year-to-date gain. The locked liquidity positions are represented by NFTs, which won’t be burned but permanently locked. Raydium is currently the fourth-largest DEX, trailing behind Uniswap, Curve, and PancakeSwap, with a total value locked (TVL) of $876 million.

Ride-Hailing App Tada Integrates TON and USDT Crypto Payments for Singapore Rides via Telegram Mini App

The TON Foundation has partnered with Tada, a ride-hailing service operating in Singapore, to enable cryptocurrency payments for rides. Through a newly launched Telegram Mini App, users can book and pay for rides using Toncoin (TON) or Tether (USDT). Tada, which operates in multiple Southeast Asian countries, offers a zero-commission policy, providing better rates for both riders and drivers. The initiative is a significant step in blending Web2 and Web3, promoting the use of crypto in everyday services.

To celebrate the collaboration, 4,000 free and discounted rides will be available during the upcoming Token2049 event in Singapore. Harvey Kim of the TON Foundation highlighted that the partnership aims to accelerate Web3 adoption by integrating crypto payments with familiar services like ride-hailing. While the choice between paying with crypto or fiat remains up to users, the move underscores the increasing practical applications of cryptocurrencies in the real world.

Sky Proposes Fully Offboarding Wrapped Bitcoin (WBTC) Over Concerns About Justin Sun's Involvement in New Ownership Structure

Sky, formerly known as MakerDAO, is considering fully offboarding Wrapped Bitcoin (WBTC) due to concerns about its new ownership structure and the involvement of Justin Sun, Tron’s controversial founder. A proposal published by Monet Supply of BA Labs on Sept. 12 raised alarms about Sun’s potential control over BitGlobal, which will jointly manage WBTC with BitGo. The proposal suggests Sun’s influence is hidden through shell companies and nominee directors. The recommendation advises an orderly offboarding of WBTC from Sky’s ecosystem, where it currently collateralizes $73 million of loans and 127 million DAI, Sky’s stablecoin.

To avoid market disruption, the proposal outlines a gradual liquidation process to begin in two weeks, aiming to complete offboarding by Oct. 8. Sky is also advised to consider alternative Bitcoin-backed assets like Coinbase’s cbBTC or decentralized tokens like tBTC. Sun’s past projects, including Huobi BTC and HUSD, have raised concerns due to their transparency issues and failures, further fueling Sky’s decision.

Titan Network Closes Seed Round with Backing from Arrington Capital and DePIN X, Advancing Its Mission to Revolutionize Cloud Services with Decentralization

Titan Network has successfully closed its seed round, securing backing from prominent partners like Arrington Capital and DePIN X. The decentralized platform is on a mission to make cloud services cheaper, more accessible, and eco-friendly by matching idle community resources such as computing power, storage, and bandwidth with global demand.

Titan's use of blockchain and DePIN (Decentralized Physical Infrastructure Networks) ensures high levels of privacy, fast transmission, and self-repairing mechanisms, providing continuous service availability. By fostering a decentralized "Internet of Value," Titan allows participants to contribute their resources and earn rewards while promoting data security and accessibility. Its open-source model invites widespread participation, positioning Titan as a key player in the future of distributed digital services.

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