Scammers Targeting Layer 2 Networks
In recent months, scammers have been focusing on newly launched layer 2 networks and using phishing schemes to deceive investors and steal funds. One such network is Blast, an Ethereum layer 2 solution that has already seen a victim lose over $130,000.
The Blast Phishing Scam
The scam involved a fraudster impersonating Paradigm partner Matt Huang and endorsing phishing links for Blast. The incident was flagged by Bitrace, but the victim had already suffered significant financial damage. The impostor’s message under Blast’s official tweet is still pending processing.
Blast has gained popularity since its launch on November 20th, attracting over $375 million in total value locked (TVL) within its first week. It has prominent investors like Paradigm and Standard Crypto.
Backlash from Critics
Blast has faced criticism regarding its model and marketing strategies. One major concern is the limitation on withdrawals, which will remain in place until February 24 of the following year. This restriction raises concerns about liquidity and asset control, potentially undermining user confidence.
Some critics have drawn parallels between Blast and a pyramid scheme due to the rewards system for early access members. There are also concerns about potential risks associated with certain functions and contracts of the platform, which could pose a threat to investors’ assets.
Hot Take: Protect Yourself from Phishing Scams
As scammers continue to target layer 2 networks like Blast, it’s crucial to protect yourself from phishing scams. Be cautious of suspicious links or messages endorsing investments. Always verify the authenticity of endorsements and double-check the official sources before taking any action or providing personal information.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.