Today, Blast announced that their Total Value Locked (TVL) has reached $443 million in just 4 days. Specifically, this amount comes from 52,836 investors expecting ~4% yield for ETH and ~5% for stablecoins, along with Blast points.
As of the time of writing, this figure has surged even higher, now exceeding $487 million and could soon surpass half a billion USD in the coming days.
Blast is developed as a Layer 2 solution amidst a slew of other Layer 2 competitors that have gained investors’ trust. Despite being relatively new, Blast has attracted a substantial amount for staking, having announced a $20 million investment from @Paradigm and @StandardCrypto.
However, Blast has continuously raised concerns among analysts as a new Ponzi scheme model due to the following factors:
- Blast does not offer any new breakthrough or innovative technical ideas among the many existing Layer 2 solutions. Currently, Blast does not even have an application, and users cannot withdraw funds until next year. The only attraction of Blast seems to be its airdrop program and yield promises.
- 5 individuals hold the completely anonymous multisig. And the pyramid-style referral mechanism makes Blast resemble more of a Ponzi scheme. Although the Blast founders recently explained and clarified, it was not enough to satisfy the community’s doubts.
- Many investors seem to “like” such Ponzi-like characteristics because experience has shown that only Ponzi schemes bring in substantial cash flow. This reverse psychology continues to attract interest to Blast.