Paradigm Criticizes Blast’s Marketing Strategy and Launch Approach
Paradigm, a prominent crypto venture capital firm and early investor in Blast, has publicly criticized Blast’s marketing strategy. Dan Robinson, head of research at Paradigm, expressed his disagreement with Blast’s recent decisions, particularly the decision to launch a bridge before its network and the subsequent restriction on withdrawals for three months. Robinson’s statement reflects a broader concern within the industry regarding the establishment of precedents that could influence other crypto projects and the overall market.
Concerns Regarding Project Marketing and Execution
Robinson’s comments suggest that Blast’s marketing approach could undermine the seriousness of the team’s work. Paradigm has directly communicated its concerns to Blast, highlighting the ongoing disagreements between the investor and the protocol. Despite the criticism, Robinson acknowledged Blast’s team as “world-class builders” with a proven track record of developing great products. However, he raised questions about the startup’s governance structure and Paradigm’s involvement in the decision-making process, emphasizing the firm’s commitment to responsible practices in the crypto ecosystem.
Security Risks and Industry Criticism
Blast’s approach has also attracted scrutiny from other industry experts. Jarrod Watts of Polygon Labs raised concerns about the centralization of the network, posing a significant security risk. Watts highlighted that Blast operates on a 3/5 multisig system, which could be vulnerable to attacks. He also criticized the protocol for not being a true Layer-2 solution and for its lack of withdrawal functionality, requiring users to trust the team’s future developments.
Community members have also noted that the multisig wallets were funded by the same address, creating an obvious link and a higher risk of attack.
Despite the controversies, Blast has managed to secure over $555 million in total value locked since its launch. The protocol markets itself as “the only Ethereum L2 with native yield for ETH and stablecoins”, with an airdrop scheduled for January.
