The busy founder of the NFT platform Blur has launched his second project, Blast. As a layer-2 solution, it aims to guarantee 4 percent interest on Ethereum and 5 percent on stablecoins. But there is also harsh criticism.
At the beginning of the year, Blur made headlines because the NFT marketplace outperformed the previous market leader OpenSea within just a few months. Now Blur founder Tieshun Roquerre has launched his next project, Blast, and once again he wants to cause a sensation. The Blast launch on X is a big promise: As a layer 2 solution, the project aims to guarantee investors 4 percent interest on Ethereum (ETH) and even 5 percent on stablecoins such as Tether (USDT) and USDC. Anyone who joins Blast now will also receive Blast Points, which are to become worth money in May 2024.
The idea for Blast came from the fact that Blur has around 100 million US dollars in Ethereum “parked” in a pool for NFT bids, but earns no interest, writes Roquerre on X. In fact, you can stake Ethereum and currently expect to earn around 3.75 percent interest. However, the big boom in Ethereum staking already seems to be over.
Blast wants to realize the interest on stablecoins through automated investments in DeFi protocols such as MakerDAO. Here, too, 5 percent is not unrealistic at present, as US government bonds are mirrored. Blast scores points in the concept by being able to conveniently manage such investments in Ethereum and stablecoins in one place and through additional blast points. The timetable stipulates that investments can now be made by invitation. Blast’s mainnet as layer 2 will then go live at the end of February and withdrawals will also be possible from then on. The redemption of Blast Points, which could represent a new cryptocurrency, is planned for the end of May.
Blast already criticized at launch
We would like to remind you that the BLUR token quickly hit rock bottom after a spectacular stock market debut and fell out of the top 100 cryptocurrencies with the highest capitalization. Blast is already being criticized on X. The invitation system and blast points give the impression of a Ponzi scheme, they say. DeFi expert Gabriel Shapiro is even clearer, noting on X: “For the time being, all Blast investments are stored on a wallet that is under the control of Roquerre and his team. In reality, Blast is not currently investing in DeFi, but in a crypto hedge fund. In the worst-case scenario, the creators could make off with the invested capital or a future programming error could lead to a total loss, the warning states.
Conclusion: Blast initially a project at your own risk
The first impression of Blast is double-edged: weak security and the problem of invitation systems cannot be dismissed out of hand. On the other hand, Roquerre has already revolutionized a crypto sector with the Blur platform, even if the BLUR coin fell short of expectations. Blast raised 20 million US dollars in venture capital from Paradigm and StandardCrypto for its development. The idea of Blast has its appeal – but anyone who decides to deposit there now should assess the risks based on their own research.
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