GizmoLab Report: Cutting-Edge Developments in Web3 📈

Today’s key beats:

- TON Blockchain Experiences 7-Hour Outage Amid DOGS Airdrop Frenzy

- Sony Launches Testnet and Incubator for Soneium Layer 2

- BNB Chain Launches Cross-Chain Bridge to Boost Stablecoin Ecosystem

- Hong Kong Launches Sandbox for RWA Tokenization

- Binance Denies Seizing Palestinian Funds

- Solayer Labs Raises $12M in Seed Funding

The Open Network (TON) Goes Offline for Seven Hours Due to Memecoin Airdrop Overload as Telegram CEO Faces Legal Troubles

The Open Network (TON), a Layer 1 blockchain integrated with Telegram, suffered a seven-hour outage due to overwhelming demand from a DOGS memecoin airdrop. The network went offline on August 28 as multiple validators were unable to process old transactions, causing a consensus failure. Block production resumed after a coordinated restart by validators. The outage occurred amidst legal issues for Telegram CEO Pavel Durov, who is detained by French authorities over allegations including money laundering and failing to enforce content moderation.

Despite the outage, TON’s price rose by 0.7% over the past 24 hours. Network data showed transaction processing dropped significantly during the event, handling far fewer transactions per second than its estimated capacity. The outage highlights the challenges blockchain networks face under high demand and stress-testing conditions.

Sony Unveils "Minato" Testnet and Spark Incubator for Soneium Layer 2 to Foster DeFi, NFT, Gaming, and Social Projects

Sony Block Solutions Labs (Sony BSL), a subsidiary of Sony Group, launched the "Minato" testnet for Soneium, its new Ethereum Layer 2 network, on August 28. The public testnet aims to allow developers and users to explore the network and provide feedback before its mainnet launch. In addition, Sony introduced the Spark incubator program to support development on Soneium by offering up to $100,000 in investment and various resources to eligible developers. The incubator targets projects in DeFi, NFTs, gaming, and social sectors.

Applications for the program are open for 30 days, with the first cohort starting in mid-October. Soneium is built on the OP Stack, supports Ethereum Virtual Machine smart contracts, and partners with Astar Network, Optimism, and other key blockchain players. Sony’s move into Web3 aligns with its broader strategy, including investments in Epic Games and NFT initiatives, reflecting its increasing engagement in the blockchain space.

BNB Chain Unveils Cross-Chain Bridge and Liquidity Pool to Enhance Stablecoin Ecosystem and Attract DeFi Projects

BNB Chain announced the launch of a new cross-chain bridge on August 28 to enhance network interoperability, liquidity, and user experience. Developed in collaboration with cross-chain technology providers Celer, deBridge, and Stargate, the bridge enables asset transfers from other blockchains, including stablecoins. BNB Chain also introduced a liquidity pool to facilitate these transfers, aiming to expand its stablecoin ecosystem. The bridge is part of BNB Chain’s strategy to boost its position in the DeFi market by offering more decentralized finance products and services.

The network seeks to attract new projects by providing cost-effective cross-chain interoperability services. BNB Chain’s move comes as it competes with Ethereum and Tron in stablecoin market share, with Ethereum holding a dominant 55.7% and BNB Smart Chain currently at just 0.2%. The bridge launch addresses market demand and user feedback, positioning BNB Chain as a key player in the evolving blockchain space.

Hong Kong Monetary Authority Unveils "Project Ensemble Sandbox" to Accelerate Tokenization of Real-World Assets in Financial Sector

The Hong Kong Monetary Authority (HKMA) has launched the "Project Ensemble Sandbox," a new initiative aimed at advancing the tokenization of real-world assets (RWA) in the financial sector. Announced on August 28, the sandbox will explore the use of tokenized money for interbank settlements and transactions involving tokenized assets. The initial focus areas include fixed income, investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance.

Major banks like Standard Chartered, HSBC, Bank of China, Hang Seng Bank, and HashKey Group have already connected their tokenized deposit platforms to the sandbox for real-time testing of settlement mechanisms. Ant International, based in Singapore, is also participating, focusing on global liquidity management solutions. HKMA Chief Executive Eddie Yue highlighted the initiative as a significant step toward applying tokenization in real-world business scenarios, aiming to boost innovation in Hong Kong’s tokenization market.

Binance Refutes Allegations of Seizing Palestinian User Funds Amid Compliance with International Sanctions

Binance, a leading cryptocurrency exchange, has denied allegations of seizing funds from Palestinian users, calling the claims untrue. On August 26, Ray Youssef, co-founder and former CEO of Paxful, shared a document from Israel’s National Bureau for Counter Terror Financing that mentioned a "temporary seizure of property of a declared terrorist organization," including crypto assets. Youssef alleged that Binance had seized Palestinian user funds and refused to return them.

However, Binance clarified that only a small number of accounts linked to illicit activities were blocked to comply with international sanctions. This move follows Binance's $4.3 billion plea deal in February over anti-money laundering and sanctions violations, which included facilitating transactions for Hamas. Binance had also blocked over 100 accounts associated with Hamas in October 2023 at Israel's request. A Binance spokesperson reiterated their commitment to adhering to internationally accepted sanctions legislation.

Solayer Labs Secures $12 Million in Seed Funding to Build Restaking Network on Solana

Solayer Labs, a Solana-based restaking network, has raised $12 million in a seed funding round led by Polychain Capital and Hack VC. The round also saw participation from notable investors, including Binance Labs, Maelstrom Fund, Big Brain VC, Nomad Capital, ABCDE Labs, Finality Capital, Road Capital Management, Wormhole Crypto, Borderless Capital, Race Capital, LVNA Capital, and Bitscale Capital. Solayer is developing a native restaking network on Solana, utilizing Solana's economic security and advanced execution capabilities.

This network aims to provide decentralized cloud infrastructure, which will enhance consensus and offer blockspace customization for application developers. By leveraging SOL's economic security, Solayer intends to secure other systems and build a shared validator network to extend Solana’s security and infrastructure. The funding will support Solayer’s mission to strengthen Solana’s ecosystem and develop innovative solutions for decentralized applications.

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