Blast Blockchain's Soaring Deposits Stir Mixed Reactions

Billion-Dollar Deposits Despite Delayed Launch

The newly introduced Blast blockchain, an extension of the NFT platform Blur, has remarkably amassed over $1.1 billion in deposits. This surge in deposits is primarily driven by an upcoming airdrop scheduled for May, despite the platform's official launch being slated for February. The influx of funds has been significant, with $1 billion in staked ether (stETH) and $103 million in dai (DAI) stablecoins since the platform's recent unveiling, as reported by DefiLlama.

Attractive Yields and Promotional Tactics

Incentivizing users, Blast offers approximately 5% yield on staked assets alongside "Blast Points." These points are redeemable for the airdrop in May. Additionally, the platform encourages user referrals, a strategy Blur previously employed after launching its NFT marketplace in February. The value of Blur's token, BLUR, has since climbed to a market cap of $500 million, reflecting a 23% increase in the past month.

Controversies and Criticisms Surrounding Blast

However, Blast's approach has not been without controversy. Accepting deposits for a yet-to-launch platform has drawn criticism from some in the crypto sector. Critics liken this strategy to a pyramid scheme, where early depositors and affiliate marketers potentially reap the most benefits from the airdrop. Notably, even some of Blast's backers have voiced concerns. Paradigm's Head of Research and General Partner, Dan Robinson, expressed reservations about Blast's aggressive marketing, stating that it "crossed lines." Although Robinson disapproves of initiating deposits prior to the blockchain and withdrawal functionalities being live, he acknowledges several promising aspects of Blur.

The Blast blockchain, with its significant early deposits and controversial methods, highlights the complex dynamics of investor behavior and risk in the evolving world of cryptocurrency. Despite the allure of high returns and innovative platforms, the industry continues to grapple with ethical and strategic challenges.