Paradigm Criticizes Blast's Business Strategy, Despite Accumulating $555M TVL Since Launch
Summary:
Paradigm, a crypto venture capital firm, has publicly criticized the promotional tactics and strategy of the startup Blast, in which Paradigm is a seed investor. Concerns revolve around Blast's decision to launch an intermediary offering before its main product and to institute a three-month hold on withdrawals. Despite the disagreements, Paradigm acknowledges Blast's world-class team and notable successes. Blast, however, is under fire from other quarters, most notably for centralization that poses a significant security risk. Regardless of the controversy surrounding its launch, Blast has secured over $555 million in total value locked (TVL) since its inception.
The cryptocurrency venture capital organization, Paradigm, has taken issue with the promotional technique of the startup Blast, alleging that the new company has overstepped boundaries in terms of both communication and implementation. Paradigm has an investment history with Blast, having provided initial funding for the firm. Paradigm's research lead, Dan Robinson, publicly voiced his dissatisfaction with Blast’s choice to introduce an intermediary offering prior to completing their main product offering and for placing a three-month hold on withdrawals. Paradigm regards this policy as detrimental for subsequent projects, according to Robinson's post on X (known previously as Twitter). Criticizing the promotional approach that belittles the effort of a dedicated team, he also expressed his enthusiasm to further engage with the promising elements of Blast’s work. Despite disagreeing over several points with Blast, Paradigm still values Blast’s team for their exemplary talent and proven ability in product creation.
Robinson disclosed Paradigm’s concerns to Blast and highlighted that there exist numerous points of contention. The role Paradigm plays in Blast's decision-making or Blast's governance structure isn't entirely transparent. Investing in strong, autonomous ventures, Paradigm does not approve the tactics employed, Robinson states. The firm realizes its significance in setting an example of best practices in the crypto industry. Paradigm isn't the sole firm to express disapproval of Blast’s recent launch. Jarrod Watts, a developer relations engineer from Polygon Labs, flagged that the centralization of Blast puts its security structure at significant risk.
Accumulating total value locked (TVL) in excess of $555 million since its inception, Blast’s launch hasn't gone unnoticed. However, Blast's governance structure remains vague, and questions about its safety remain, with Polygon Lab's engineer pointing out the risk associated with the 3/5 multisig that could potentially allow an attacker to gain possession of all cryptocurrencies in the Blast contract. Despite criticism, the protocol continues to claim the exclusive status of being the sole Ethereum L2 providing native yield for stablecoins and ETH. Blast has planned an airdrop for January, with its successful launch yet mired in controversy.
Published At
11/26/2023 8:45:03 PM
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