Blast Takes Off, Unlocks $2.3 Billion in Crypto
After a controversial start, Blast has launched its mainnet, releasing $2.3 billion in locked crypto.
Blast has caused quite a stir in the crypto community as it finally launched its mainnet on February 29, 2023. This not only gave access to the layer-2 Ethereum scaling solution but also released billions of dollars worth of crypto into the market.
A Blast of Funds
The funds in question were the tokens that had been staked on Blast by users looking to get airdrop rewards. Last November, when Blast first launched, there was the option for users to stake their tokens to earn interest and also to possibly receive rewards via airdrop in May.
$2.3 billion in total was staked on the platform since then and now that the mainnet is live, users have the option to retrieve them. Currently, the price of Ethereum has been on the rise, along with Bitcoin and other major altcoins. Some users might choose to retrieve their tokens and cash out on the current market movement.
There are also other activities like gambling. Crypto sports betting is huge these days and some might choose to test their sports team knowledge on the various sites available. Some consumers might also opt to spend their Ethereum tokens on consumer goods.
So far, the amount of money locked on Blast has dipped to around $1.9 billion, implying that about $400 million has been withdrawn by users. At the same time, there are still many users who plan to keep their funds locked so they can enjoy the various applications that will be launched on Blast and get their hands on the airdrop rewards.
The rewards in question are reportedly connected to a new token that will be used within the ecosystem and naturally, those who get it first will be in an advantageous position.
The Lead-Up to the Launch
In the days leading up to Blast’s launch, there was a spike in the amount of funds deposited into the platform. This can be put down to the anticipation of the launch and a desire to get in on the action beforehand.
At the same time, there was also some controversy. Most of this centred around the fact that the funds locked on the bridge could not be withdrawn for weeks. Many of the users who claimed their tokens following the mainnet launch likely had those tokens locked up for months on end. The backlash regarding this was so bad that Paradigm, the VC firm that led a funding round for Blast, weighed in on the issue.
Dan Robinson, the Head of Research at Paradigm, put out a statement saying that while he was proud of the work being done, some aspects of the rollout were not favourable.
“For example, we don’t agree with the decision to launch the bridge before the L2, or not to allow withdrawals for three months, since we think it sets a bad precedent for other projects,” he said.
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