Blast: Ethereum Layer 2 Scaling Network Raises Over $500 Million in Locked Funds, Faces Criticism

The recent announcement of the Ethereum layer 2 scaling network, Blast, has garnered significant attention and investment from users seeking yield and rewards. Led by the founder of the top NFT marketplace, Blur, Blast has successfully locked in over half a billion dollars worth of funds. However, despite its success, the network has faced substantial criticism over its rollout.

Joining the list of parties with concerns over Blast's launch is early investor Paradigm. In a recent post on Twitter, Paradigm Head of Research and General Partner, Dan Robinson, expressed his issues with Blast's launch on behalf of the firm. Robinson stated that while there are aspects of Blast that he finds exciting, Paradigm believes that the announcement crossed lines in both messaging and execution.

One of the main points of contention for Paradigm is the decision to launch the bridge before the L2 and the three-month withdrawal restriction. According to Robinson, these decisions set a bad precedent for other projects and do not align with Paradigm's beliefs. Additionally, Robinson criticized the marketing of Blast, stating that it cheapens the work of a serious team.

Blast is marketed as an Ethereum layer 2 network that offers native yield for Ethereum and stablecoins. Users are able to stake or lock up their funds in the network to earn an interest-like return. The network also promises Blur-like rewards for users, which has enticed early adopters to lock up their funds ahead of a potential airdrop. Blur has already awarded hundreds of millions of dollars worth of its BLUR token to NFT traders, surpassing former leader OpenSea in the process.

While users have eagerly locked up their funds ahead of Blast's network launch in 2024, bringing the total value locked (TVL) to approximately $535 million, the team has also faced significant criticism. The concerns raised by Paradigm and other parties highlight the need for careful consideration and thoughtful execution in the development and launch of new projects in the crypto space.