Blast mainnet launch sees $400M withdrawn

The highly anticipated mainnet launch of Blast, a layer-2 blockchain scaler, on February 29 at 9:00 pm UTC has resulted in a significant withdrawal of funds, marking a pivotal moment in the platform’s trajectory. 

With approximately 180,000 users actively participating, Blast experienced an initial withdrawal of $400 million, unlocking nearly $2.3 billion in staked cryptocurrency previously inaccessible on the network.

Unlocking staked crypto: A milestone achievement

Before the mainnet launch, Blast users could not withdraw their assets, as funds were locked within the network. However, with the commencement of the mainnet, users were finally granted the opportunity to access their staked crypto, resulting in a surge of withdrawals amounting to $400 million in Ether (ETH) alone. This significant movement of funds has brought about a notable shift in the network’s dynamics.

One of Blast’s distinguishing features is its utilization of optimistic rollup technology, which offers users an attractive annual percentage yield (APY) of up to 5% on both Ether and stablecoins held within the network. 

This yield is generated from a combination of staked ETH and United States Treasury Bills (T-Bills), managed by the blockchain protocol in collaboration with Dai stablecoin creator MakerDAO. Such innovative mechanisms have contributed to the platform’s appeal among cryptocurrency enthusiasts seeking opportunities for passive income generation.

Challenges and controversies surrounding Blast’s launch

Despite the excitement surrounding Blast’s mainnet launch, the platform has encountered its fair share of challenges and controversies. One such issue pertains to the inability of users to withdraw their funds before the mainnet launch, which sparked criticism from some quarters. 

Dan Robinson, research head at Blast seed investor Paradigm, expressed disapproval regarding Blast’s decision-making process, particularly highlighting concerns about setting unfavorable precedents for future projects.

 Additionally, Robinson raised objections regarding the platform’s marketing strategies, suggesting that they may undermine the project’s credibility.

Airdrop frenzy and alleged exit scam

In the aftermath of Blast’s mainnet launch, a flurry of activity has ensued, with “airdrop hunters” eagerly participating in farming activities in anticipation of receiving Blast tokens, scheduled for distribution in May. 

However, amidst the excitement, Blast encountered its first setback in the form of an alleged exit scam perpetrated by a gambling protocol known as “Risk on Blast.” This incident, occurring on February 26, saw the disappearance of 420 ETH, equivalent to approximately $1.25 million, collected from users for the purported RISK presale token.