Pre-Launch Surge: Blast Accumulates $1.1 Billion in Deposits Ahead of Schedule

Investors engaging with Blast, the highly anticipated layer 2 blockchain developed by the creators of Blur, a non-fungible token (NFT) platform, are poised for a substantial windfall through an upcoming airdrop set to be redeemable in May 2024. Despite Blast's official launch being slated for February, the platform has already amassed an impressive $1.1 billion in deposits.

The allure of a promised airdrop in May has proven irresistible to speculators, resulting in a notable $1 billion in staked ether (stETH) and $103 million in the dai (DAI) stablecoin being deposited on the platform since its website went live just last month, as reported by DefiLlama.

In return for their deposits, users not only enjoy a significant yield of around 5% on their staked assets but also accumulate "Blast Points." These points play a pivotal role in the eagerly anticipated airdrop, injecting an additional layer of excitement into the already buzzing platform.

Users can augment their points by referring others to the platform, a strategy successfully implemented by Blur when it unveiled an NFT marketplace in February. The resultant BLUR token has experienced an impressive surge, reaching a market cap of $500 million and witnessing a 23% increase in the past month alone.

However, the unconventional practice of accepting deposits on a platform yet to go live has sparked criticism within certain segments of the crypto industry. Detractors argue that Blast exhibits characteristics reminiscent of a pyramid scheme, wherein early depositors and affiliate marketers stand to disproportionately benefit from the eventual airdrop.

Even the supporters of Blast, including venture capitalist firm Paradigm, have expressed reservations. Paradigm's Head of Research and General Partner, Dan Robinson, remarked that Blast's marketing campaign had "crossed lines," expressing disagreement with the approach of accepting deposits before the live launch of the blockchain or withdrawals. Despite this, Robinson conveyed enthusiasm for various aspects of Blur.

There are a lot of components of Blast that I’m excited about and would be interested in engaging with people on. That said, we at Paradigm think the announcement this week crossed lines in both messaging and execution. For example, we don’t agree with the decision to launch the…

— Dan Robinson (@danrobinson) November 26, 2023

In the midst of a bullish market, with Bitcoin (BTC) surging by over 150% to reach approximately $43,000 and Ethereum (ETH) doubling to $2,400, the cryptocurrency landscape is brimming with optimism. This positive sentiment is underscored by the swift rise of projects like Blast, even in the face of skepticism surrounding its atypical pre-launch deposit model.

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