The cryptocurrency platform Blast, under the leadership of Tieshun "Pacman" Roquerre, who also founded Blur, has found itself at the center of controversy due to its launch strategy. The platform, which has recently gathered $405 million in total value locked (TVL) for its upcoming Ethereum layer-2 network, is being scrutinized for its resemblance to a Ponzi scheme and for the security concerns raised due to the need for anonymous keys in transactions.
Investment firm Paradigm, an early backer of Blast with a $20 million seed investment, has openly criticized the platform's approach. Dan Robinson of Paradigm took to social media on Sunday to express concerns over Blast's decision to release a bridge before its layer-2 platform and the imposition of a three-month withdrawal freeze. Robinson emphasized that these practices could tarnish the crypto industry's reputation. Despite these disagreements, he reaffirmed Paradigm's support for independent founders.
Blast has been successful in securing a significant TVL, with $535 million reported on DeFi Llama amidst the ongoing scrutiny. The platform has been enticing users with high yields on Ethereum and stablecoins, as well as promises of rewards similar to those seen in Blur’s Season 2 payouts, which have been quite lucrative for some traders. One trader notably earned $8.4 million in BLUR tokens from Season 2 activities.
As Blast continues to attract attention with its high-yield offerings and prepares for further rewards akin to those from Blur’s anticipated Season 3, Paradigm is advocating for changes in Blast’s operations. However, resistance has been met from Roquerre, who prefers to keep decision-making internal. This standoff reflects the broader tension within the crypto community between rapid innovation and adherence to established best practices for investor protection and industry standards.
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