Interest in the upcoming Ethereum layer-2 network Blast is bringing in a lot of cash. Depending on the For DeFi Llama, the project’s total value locked (TVL) surpassed $405 million just a few days after the project was announced and is growing rapidly.
Blast is a new Ethereum scaling network. Announced on Tuesday. In the crowded market of layer 2 networks like Arbitrum and Optimism, developers are coming up with ideas that can make things faster, easier, and cheaper for people to work on the sometimes slow and expensive Ethereum blockchain.
This particular project is led in part by: Tishun “Pac-Man” Loker, he co-founded Blur, the industry’s largest NFT marketplace. Blur is known for rewarding traders well for using their markets and remaining loyal, and Blast seems to be aiming to do the same.
The idea of Blast is that users deposit primarily staked cryptocurrencies. Ethereum (ETH) and stablecoin—To make a profit. And people are depositing funds quickly. 1 cryptocurrency wallet this week deposit 10,000 ETH to the project. This is equivalent to nearly $21 million in cryptocurrency.
But there’s a problem. Blast hasn’t actually been released yet.
Blast said it would store user funds until termination. leg Launching in February, the network’s rapid rise and questions about its model have people talking about whether it is safe to invest in. Blast itself claims much higher figures. Total value pegged at $443 millionAs of this writing, it has nearly 53,000 users.
Some traders fear this could be a Ponzi scheme because those who refer other users could receive “explosion points” in May. airdrop. The project also promises users significant “risk-free” returns of 4% on ETH and 5% on stablecoins.
Others—including pseudonymous NFT developers phygital and Polygon Labs Engineer Jarrod Watts—Argued that requiring three out of five anonymous keys to sign and execute transactions is potentially dangerous. In particular, Watts said that Blast is “not L2.” At least not in the current version.
“Investing money in Blast is like trusting 3-5 strangers to invest in cryptocurrency,” Watts wrote on X, formerly Twitter. “And it cannot be revoked unless the three signatories decide to do so. It seems dangerous to me.”
pacman wrote The project announced on Twitter on Friday that it promises large rewards as its revenue comes from major decentralized finance projects Lido and MakerDAO.
“The reason the yield feels so good on Blast is because they make it the default for everyone.” He added that the project was “democratizing higher yields.”
Blast also said that one of the types of returns is risk-free rate ETH staking. But the members lidoX, including one who goes by the name Sacha, pointed out that no form of staking is completely “risk-free.”
decryption We reached out to Blast for further comment on our concerns, but did not immediately hear back.
Risk-free or not, investors continue to pour massive amounts of cryptocurrency into projects at a breakneck pace, investments that won’t budge for months. They’ll have to hope that Blast keeps its promise.
Editor: Andrew Hayward
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