Is Blast the next big thing? Data suggests…

Journalist

Posted: November 25, 2023

• Blast garnered huge consideration over the previous couple of weeks.
• Criticisms of it being a Ponzi scheme have surfaced.

Blast protocol, over the previous couple of weeks, has taken the crypto world by storm. In a brief time period, Blast has managed to make vital progress throughout numerous sectors.

What’s Blast?

Blast is a Layer 2 resolution the place customers deposit crypto, like staked Ethereum and stablecoins, to earn returns.

In simply 4 days, the Blast mainnet contract attracted $415 million in Whole Worth Locked (TVL). Many joined to get the Blast L2 airdrop by means of their factors system.

In line with ASXN’s analysis, they simplify issues: 50% of the airdrop goes to builders, and 50% to Early Entry Customers.

The Early Entry Consumer airdrop is cut up between Blast deposits and Blur stakers.

Nevertheless, this can be a easy view. Staking and deposit quantities change, and so they don’t take into account how factors are distributed, doubtless following an influence regulation. Their evaluation estimates that with $412 million TVL, $50 million of BLAST tokens could possibly be earned.

However the true distribution will rely on how factors are given out.

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The Blast mainnet contract has sucked up $415M in TVL in simply 4 days, with many individuals looking for to earn the Blast L2 airdrop through their factors mechanism.

Let’s attempt to get a ballpark estimate of the return on deposited capital into Blast & from staking Blur: pic.twitter.com/GnzrLRwJt0

— ASXN (@asxn_r) November 24, 2023

If it appears like a duck, swims like a duck, then it most likely is…

Nevertheless, many members within the crypto group have been accusing Blast of being an elaborate Ponzi scheme as a result of its incentive program and excessive rewards.

The invite system, the place customers get factors for inviting others, is inflicting controversy. Some say it appears like a pyramid scheme.

Critics word there’s no clear approach for customers to exit, which could possibly be an issue for withdrawing funds or becoming a member of on-chain actions.

Grasp-Piece or Grasp-Ponzi…

Let’s expose the TRUTH about @Blast_L2 :

() pic.twitter.com/6u9iwV2LiD

— Landon Sousa | Avem (@avemfn) November 23, 2023

The CEO of Blast responded to those criticisms, addressing rewards and the invite system in a current tweet. Although some say Blast looks like a pyramid scheme, the CEO has clarified that the yield comes from Lido and MakerDAO.

Reasonable or not, here’s LDO’s market cap in BTC’s terms

Lido will get its yield from ETH staking, part of Ethereum’s Proof-of-Stake mechanism. MakerDAO’s yield comes from on-chain T-Payments, essential to the US financial system.

I’ve seen a lot of misunderstandings about Blast spreading round. Whereas many of those are humorous memes, it is essential to set the file straight on a number of factors:

— Pacman | Blur + Blast (@PacmanBlur) November 24, 2023

Solely time will inform whether or not Blast could have a long-lasting influence on the L2 sector. Nevertheless, the protocol may act as a constructive commercial for the rewards on MakerDAO and Lido.