Blast’s TVL tops $500M despite heavy criticism

The locked value in Blast has already reached more than one half a billion dollarsand this, despite layer2 project is the subject of reviews on social networksespecially from his own investor Paradigm.

Unveiled last week and supported by Paradigm, the Blast by the co-founder of Blur aims to offer a layer2 Ethereum offering a native yield for ETH and stablecoins.

Since its pre-launch, just over $560 million – according to data provided by Defillama – have been transferred to the L2 bridge, which promises high returns for its users.

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But Blast is subject to criticism on X, the preferred social network for crypto investors. Indeed, a number of traders believe that layer2’s promises on returns are delusional, even going so far as to call it a ponzi.

The accusations quickly drew a response from its creator. Pacman stated on Friday that Blast’s yields are “not unsustainable” and come from Lido and MakerDAO.

There’s a meme going around that Blast is a ponzi. The reason the yield seems too good to be true is that Blast makes that yield the default for everyone,” he added.

In addition to returns, investors also expect rewards in the form of airdrop. The NFT Blur marketplace co-founded by Pacman is popular for making generous distributions. In the last 12 months, it has dethroned number 1 OpenSea.

Paradigmwhich participated in the $20 million fund-raising for layer 2, has also publicly criticized its roadmap.

We don’t agree with the decision to launch the bridge before L2, or not to allow withdrawals for three months, because we think it sets a bad precedent. We also think that much of the marketing belittles the work of a serious team.” wrote the crypto VC on Sunday, stating that he still believed the solution would add value to the ecosystem.

Pacman had mentioned the disagreements with Paradigm, stating that the VC firm had no involvement in Blast’s go-to-market strategy.

Frankly, they probably would have asked me to change a lot of things about Blast’s launch if they’d been involved. We consult Paradigm on L2 technical design and they are incredible in this area,” reads his message.

For several experts, opening a cross-chain bridge before the mainnet launch also poses problems in terms of security. In recent years, major hacks, such as the Ronin bridge hack, have been carried out on bridges.

TVL from Blast – Defillama

Blast is scheduled to go live in February 2024.

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