<img src="https://cryptoslate.com/wp-content/uploads/2023/11/ethereum-pyramid-blast.jpg” />
Blast, a newly introduced ethereum (eth) Layer 2 network that promises “native yield” on eth and stablecoin holdings, quickly secured the position of the third-largest staked ether holder in just three days after launch, according to on-chain. data.
Etherscan data indicates that the platform has amassed over 140,000 staked ethereum, valued at approximately $286 million, using the Lido liquid staking protocol since its inception on November 20. This accumulation represents approximately 1.5% of the total staked Ether volume.
Debank data further shows that the protocol’s multi-sig wallet currently holds assets worth over $335 million, including Lido’s staked Ether and MakerDAO’s DAI stablecoin.
Controversy surrounds Blast’s pyramid system
However, Blast’s rapid growth over the past three days has drawn heavy criticism within the crypto community due to its pyramid-shaped Blast points system, which rewards early adopters based on the number of users they refer.
Details about the project website It describes that users receive an additional 16% points when their referrals attract more participants and an additional 8% if the next level attracts additional users.
An intriguing aspect is that entries into the protocol remain one-way, with no withdrawal option until its planned launch in February next year.
Simon Dedic, CEO and managing partner at cryptocurrency investment firm MoonRock Capital, said Blast’s unique selling point is its “Ponzi airdrop crop.” He aggregate:
“(To be honest) Explosion_L2 is the perfect example of why people who don’t use cryptocurrencies hate Web3. (It is) not a technical advance for any of the other L2s, nor does it offer any interesting applications to use in addition. While disabling withdrawals.”
In addition to its Ponzi-like structure, attention has been drawn to Blast’s multi-signature wallet.
Jarrod Watts, polygon engineer believe the protocol needs 3 out of 5 signatories to authorize suspicious actions. Watts noted that the associated addresses are new and have unknown identities.
However, despite the inherent risks, Watts doubts the possibility of funds being stolen.
Similarly, Cos, the founder of SlowMist, noted that Blast operates as an updatable contract with a 3/5 multi-signature setup and lacks time locking.
