Blast Mainnet Launch: Ethereum Layer-2 Solution Unlocks $2.3B Amid Controversies and Scams
Summary:
Blast, an Ethereum layer-2 solution, launched its mainnet on Feb 29, unlocking almost $2.3 billion of previously locked-up cryptocurrency. This innovative blockchain technology offers users an annual yield of up to 5% on Ether (ETH) and stablecoins. Upon launch, Blast's total value locked (TVL) dropped from $2.27 billion to less than $2 billion. The launch also attracted potential airdrop hunters and controversy, with concerns raised about Blast's marketing strategy and the bridge's pre-mature launch. The network has also experienced its first alleged exit scam.
On Feb 29, at 9:00 pm UTC, Blast, an Ethereum layer-2 solution, sparked into life as its mainnet property went live. This move saw almost $2.3 billion of previously tied-up cryptocurrency released, with roughly $280 million of it exiting immediately. The innovative blockchain technology assures users an annual percentage yield of up to 5% on Ether (ETH) and stablecoins within its ecosystem, a return generated via staked ETH and U.S Treasury Bills (T-Bills) governed by the blockchain system MakerDAO.
Before the launch, any crypto sent to the network remained inaccessible for withdrawal by its 180,000 strong userbase. With the launch, Blast's total value locked (TVL), initially recorded as a peak of $2.27 billion on Feb 29, took a nosedive to less than $2 billion, as per the records from DeFiLlama. A landslide from close to $2.3 billion TVL at its height to $1.99 billion followed after the mainnet became operational.
Days before on Feb 27, Blast had achieved a $2 billion TVL landmark. Since the launch, many hopefuls seeking an airdrop have been drawn to the blockchain, farming it in anticipation of a Blast token that is reportedly going to be unveiled in May.
Blast's initiation, however, wasn't without controversy. Dan Robinson, the research director at Blast's seed investor Paradigm, expressed in a November X post that the firm didn't concur with Blast's resolution to go ahead with "the bridge before the L2, or restricting withdrawals for three months." He voiced out that such an approach "set a bad standard for future projects."
Robison also voiced his dissatisfaction with aspects of the platform's marketing approach, deeming it as an undermining factor for a dedicated team's hard work. The firm, as they expressed, does not endorse such strategies.
The network has already had its first encounter with an alleged exit scam that took place on Feb. 26. A gambling protocol, "Risk on Blast," reportedly took off with approximately 420 ETH, equivalent to about $1.25 million at that time, from the user funds gathered for its advertised RISK presale token.
Published At
3/1/2024 3:37:24 AM
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