- Ethereum layer two platform Blast has courted controversy in how it operates
- Blast requires interested users to stake assets and wait until February to withdraw them
- The platform also promises “Blast points” which can be increased when a user introduces the network to more people
Blast, a yet-to-be-launched Ethereum scaling layer, has shocked some in the crypto world with how it operates. The platform requires people to deposit/stake assets but wait until February to withdraw their funds. Apart from the staked amount earning “Blast points” which can be increased when a user refers more people to the platform, the platform is also invite-only, something that has caused a section of the crypto community to consider it a Ponzi scheme.
Staking to “A Chain that Doesn’t Exist”
Led by @PacmanBlur, NFT marketplace Blur’s pseudonymous co-founder, the scaling layer intends to offer yields from staking different types of assets including real-world assets (RWAs). Although the protocol has already attracted over $200 million in staked amount, the crypto community is divided on its operation model.
Among the features attracting controversy is that the staked amount is stored in a multi-sig wallet controlled by anonymous developers. The community is also skeptical as to why the platform is seeking people to stake funds “to a chain that doesn’t exist” and how the platform raised “seed money with no testnest [and] no docs.”
Blast is actually insane lol
– Raise seed money with no testnet, no docs, nothing
– Use points and ref ponzi to attract TVL to a chain that doesn't exist
– Rawdogg the deposited $ETH into $stETH on a 5 person multisig of anon devsWe're getting more retarded by the minute pic.twitter.com/XA32pNw4nk
— Wazz (@WazzCrypto) November 21, 2023
Its referral program has also courted suspicion. When a user refers to a friend, they earn 16% “bonus points” and 8% points when their referral brings in more people, a structure that some in the community liken to a Ponzi scheme.
Blast, a genuine L2 solution, or just a Ponzi scheme? Here’s everything you need to know.
Blast is a secondary layer solution built on top of the Ethereum blockchain. The team behind it also participated in BLUR and MakerDAO.
According to their statement, Blast automatically… pic.twitter.com/g23kS4XyfO
— Phygital (@Phygital_Good) November 24, 2023
Blast is Part of Blur
Earlier in the week, the pseudonymous Blur co-founder said that Blast was part of Blur, the leading NFT marketplace by trading volume.
The controversy around Blast comes a few days after Blur said that it’ll use the scaling layer to power its Season 3 rewards and seven months after Blur launched an NFT lending service, an indication that Blur is expanding its product range.
With much of the controversy having a reasonable ground, it’s to be seen how the platform will unite the community around the protocol.
