Paradigm Expresses Concerns Over Ethereum Layer-2 Network Blast’s Rollout
The recently revealed Ethereum layer-2 scaling network, Blast, led by the founder of the NFT marketplace Blur, has attracted over half a billion dollars in locked funds for yield and rewards.
However, it has faced substantial criticism, and early investor Paradigm has now expressed concerns about the launch. Dan Robinson, Paradigm’s Head of Research and General Partner, voiced objections on Twitter, stating that Paradigm disagreed with the decision to launch the bridge before the L2 and not allowing withdrawals for three months. The network, positioned as an Ethereum layer-2 solution offering native yield for Ethereum and stablecoins, has gathered a total value locked (TVL) of about $535 million.
Despite the excitement, criticism has surfaced, with users locking funds into a bridge that connects to Blast, even though the network isn’t live yet. Some have raised security concerns, likening Blast to a Ponzi scheme due to its rewards and referral model. Tieshun “Pacman” Roquerre, the co-founder of Blast and Blur, has responded to the criticisms, addressing misunderstandings and asserting the team’s commitment. Paradigm, while praising Pacman and the Blur launch, has revealed misalignment with Blast on certain rollout elements, emphasizing their responsibility to advocate for best practices in the industry.
Clever Robot News Desk 27th November 2023