Ethereum L2 Platform Blast Draws $400M in a Week Despite Invite-Only Access and Criticism

This week, the crypto group is abuzz with discussions about Blast, a brand new Ethereum layer two (L2) platform. The venture gained prominence after securing a notable $20 million in funding, spearheaded by Paradigm and Standard Crypto, amongst different traders. Developed by Pacman, the entrepreneur behind the non-fungible token (NFT) market Blur, Blast has garnered over $400 million in digital property previously week. At the identical time, the platform has been scrutinized an awesome deal over its mechanics.

Blast, Ethereum’s L2 Newcomer, Secures $400M

On November 20, 2023, Tieshun Roquerre, also referred to as Pacman, unveiled Blast following the venture’s funding from Standard Crypto, Paradigm, and extra traders. As an Ethereum L2 community, Blast stands out by providing native yields for ethereum (ETH), staked ethereum (STETH), and stablecoins reminiscent of DAI, USDT, and USDC, setting it other than different L2 options.

In below every week, Blast has amassed $405 million in worth locked, regardless of being an invite-only platform at current. Although some social media customers are distributing Blast invite codes, they’ve famous that customers can’t bridge out or withdraw funds till February 2024.

The platform’s referral system and padded emissions mechanics have led to some labeling it as a “pyramid scheme” and a “Ponzi.” Co-founder and managing companion at Omnichain Capital, David Attermann, said, “terrible search for the ‘traders’ on this deal [and] ‘influencers’ shamelessly shilling this MLM scheme on CT.”

Blast reveals that its crew, along with Pacman, consists of alumni from establishments reminiscent of MIT, Yale, and Nanyang Technological University, in addition to consultants from FAANG and Seoul National University. The referral system of Blast encompasses a leaderboard that ranks members based mostly on the factors they earn for bridging property and welcoming buddies.

The platform can be getting ready for an airdrop, with its distribution set to be evenly break up between early entry members (50%) and builders (50%), as said on their web site. The early entry section is presently energetic, and builders are slated to obtain their share of the airdrop in January, coinciding with the launch of the Blast Testnet.

Early entry individuals must wait till May for his or her airdrop. Despite skepticism surrounding Blast, paralleling the early days of Blur, the venture is experiencing appreciable traction. This decentralized finance protocol is below shut remark on analytics platforms and explorers, together with Arkham Intelligence, Dune Analytics, and Defillama.

There’s additionally discussions and public disapproval in regards to the venture’s multi-signature mechanism tied to the vault. Blast, nevertheless, emphasised the nuanced and spectrum-based nature of safety in an X post revealed on Friday. The startup insists upgradeable contracts, regardless of their perceived vulnerabilities, notably in token-gated, time-locked mechanisms, can provide extra safety in sure eventualities.

What’s your opinion about Blast’s fast rise and the criticism it has acquired? Share your ideas and opinions about this topic within the feedback part beneath.