Blast Raises Over $1 Billion in Deposits for Token Airdrop
Blast, a new Ethereum layer-2 scaling network developed by the creator of NFT marketplace Blur, has received more than $1 billion in deposits from users. These deposits allow users to earn yield and accumulate points towards an upcoming token airdrop. Over 86,000 users have contributed funds to the Blast bridge, making it the 23rd largest protocol by total value locked.
Earning Returns and Blast Points
Users who deposit Ethereum (ETH) are earning an annual return of about 4%, while stablecoin deposits earn a 5% return. In addition to the yield, users are also accumulating “Blast Points,” which will determine their share of the upcoming BLAST token airdrop. The airdrop is scheduled for May 2024.
Incentivizing Users with Token Rewards
Blast aims to stand out in the crowded Ethereum scaling market by offering native yield on staked cryptocurrency and token rewards through airdrops. This strategy has proven successful for Blur, which surpassed OpenSea as the leading NFT marketplace by utilizing airdrops. Blur has already airdropped over $800 million worth of BLUR tokens to NFT traders. Both Blast and Blur were founded by Tieshun “Pacman” Roquerre and backed by crypto venture capital firm Paradigm.
Controversy Surrounding Blast’s Rollout
Despite its success, Blast’s rollout has faced controversy. Users are depositing cryptocurrency into a bridge that does not connect to the actual Blast network yet, and they cannot withdraw funds until February 2024. This approach has drawn criticism from some crypto users who believe it sets a bad precedent. Paradigm, the VC firm backing Blast, expressed concerns about the messaging and execution of the project. However, they have been working with Blast to address these issues.
Hot Take: Blast Gains Momentum but Faces Criticism
Blast’s ability to attract over $1 billion in deposits demonstrates its appeal to users seeking yield and token rewards. However, the controversial rollout has raised concerns among some members of the crypto community, including Paradigm, the project’s backer. While Blast’s success mirrors that of Blur, it remains to be seen how the project will navigate these challenges and deliver on its promises. The upcoming token airdrop in May 2024 will be a crucial milestone for Blast and its users.
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