Issues and Reservations Raised by Paradigm
Blast, the newly announced Ethereum (ETH) layer-2 scaling network led by the founder of top NFT marketplace Blur, has gained notable traction but has also faced controversy. Paradigm, a prominent venture capital firm in the crypto space, has outlined numerous issues with the scaling solution while acknowledging its positive aspects.
In a Friday post on X (formerly Twitter), Paradigm’s Head of Research and General Partner Dan Robinson expressed reservations about Blast’s launch, noting that his comments represented the views of Paradigm. Robinson highlighted several issues with the announcement and execution of Blast.
- The decision to launch the bridge before the layer-2 network.
- The three-month withdrawal restriction setting an unfavorable precedent for other projects.
- The marketing that undermined the work of a serious team.
Despite these concerns, Robinson commended Pacman and his team for the successful launch of Blur, which disrupted the NFT market and provided substantial rewards to users.
Blast’s Features and Controversial Reputation
Blast positions itself as an Ethereum layer-2 network that offers native yield for Ethereum and stablecoins. Users can stake their funds and earn interest-like returns. The network also promises rewards similar to those offered by Blur, attracting early adopters who are eager to lock up their funds in anticipation of potential airdrops.
However, Blast has garnered attention and attracted over half a billion dollars worth of funds, leading to criticism and labeling it as a Ponzi scheme due to its rewards and referral model.
“We don’t endorse these kinds of tactics and take our responsibility in the ecosystem seriously,” Robinson concluded.
