Ethereum Bridge ‘Blast’ Attracts Controversy After Launch

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  • 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.”

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 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.