Blast, a new entrant in the Ethereum layer-2 blockchain arena, has swiftly caught the market's attention with its promise of yield payments to depositors. Within just a week of its unveiling, Blast attracted a staggering $603 million, ranking it third among Ethereum's layer-2 networks. This rapid influx of funds highlights the market's interest in yield-paying blockchains and positions Blast prominently against competitors like Arbitrum, Optimism, and Coinbase's Base.
However, Blast's marketing tactics have drawn significant criticism, including from its major investor, Paradigm. The venture-capital firm publicly rebuked Blast for its approach to accepting deposits and marketing strategy. Paradigm, known for its due diligence in reducing scams in crypto investments, expressed concern over Blast's method of locking funds in a multisig wallet without the ability to withdraw, before the official network launch.
Blast's strategy involves accepting deposits promising native yields and an eventual token airdrop. This has led to skepticism regarding the security and legitimacy of the operation, as users' funds are currently untouchable and reliant on faith in an undisclosed group of engineers. Additionally, the lack of clarity on Blast's yet-to-exist network and its reliance on external yield-paying projects like Lido for initial returns adds layers of risk.
The industry, still recovering from high-profile failures and scams, views Blast's approach with caution. Despite its potential, Blast's methods raise concerns of potentially risky setups reminiscent of "rug pulls," where funds are locked and then stolen. Its FOMO-inducing tactics and claims of "risk-free" interest have been criticized for their similarity to past unsustainable crypto ventures and multi-level marketing schemes.
Blast's founder, known as "Pacman," has responded to the criticism, attributing it to misunderstandings and assuring that the yields come from legitimate sources like Lido and MakerDAO.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
