Backlash Against Blast’s Launch Scheme
A layer-2 network called Blast, created by Blur founder Tieshun Roquerre, is facing criticism from its own backers after concerns were raised about the network model. The total value locked (TVL) in the protocol has surged to over $300 million, leading security experts to question its security. Dan Robinson, a researcher at Paradigm, a venture firm that invested $20 million in Blast, expressed his concerns about the project’s launch scheme. While acknowledging there are aspects of Blast that he finds exciting, Robinson believes the way the project was launched sets a negative precedent for other projects.
Paradigm’s Concerns
Dan Robinson stated that Paradigm has been discussing their concerns with the Blast team and that there are still points of disagreement. He emphasized that while there are components of Blast that he is excited about, he does not agree with the messaging and execution of the project’s announcement. This statement from Robinson comes after it was revealed that Paradigm, alongside Standard Crypto and others, backed Blast with a $20 million investment.
Risk Warning and Fundraising
Blast issued a warning about the lack of complete security in contract code and acknowledged vulnerabilities associated with smart contract designs. Despite this warning, Blast launched a one-way bridge and raised over $300 million from the crypto community. The asset portfolio provided by DeBank showed significant holdings in Lido’s staked Ether (stETH) and Maker’s DAI stablecoin. Roquerre explained that Blast will use customers’ funds for Ethereum staking, automatically returning the yield to users and decentralized applications.
Hot Take: Blast’s Launch Draws Criticism from Backers
The recent launch of Blast, a layer-2 network designed to reduce transaction costs for digital collectibles, has faced criticism from its own backers. Paradigm researcher Dan Robinson expressed concerns about the project’s launch scheme, stating that it sets a negative precedent for other projects. Despite Robinson’s reservations, he acknowledged that there are aspects of Blast that he finds exciting. However, security experts have raised concerns about the network model following a surge in total value locked (TVL) to over $300 million. Blast’s fundraising efforts from the crypto community have been successful, but questions remain regarding contract code security and vulnerability.
By
By
By
By
By
By