Blast’s Rise to Prominence and Allegations of Fraud: How the Community Responded

Blast offers a native return model for Ethereum and stablecoins, charging 3.4% and 8% respectively. Critics previously labeled Blast a pyramid scheme due to the limited opportunity for fund withdrawal.

As the network operates, it automatically links assets to the Ethereum mainnet, where they are staked and start earning interest. Interest rates are cumulative and based on the Risk-Free Rate (RFR) return structure.

Points are accumulated and additional points can be obtained for various activities, such as deposits, inviting users, and testing new projects on the Blast blockchain. These Points and Gold are then converted into BLAST tokens through an airdrop.

There are two ways to accumulate points: through spins or by receiving a percentage of the points earned by invited investors. The network has rapidly attracted several million user deposits since its launch in February, boasting approximately 280,000 monthly active users.

7 billion tokens from the airdrop went to holders of Blast Points, while 3 billion coins were intended for the Blur Foundation. However, the project faced accusations of fraud shortly after the airdrop, with concerns regarding token distribution, phishing links, and alleged fraudulent activities.

Blast developers have defended the project, comparing it to other layer 2 solutions and emphasizing their focus on optimizing the network and creating a comprehensive ecosystem. Despite these challenges, Blast is positioned as an innovative layer 2 solution for Ethereum with significant potential for development and the ability to attract users and investors through its return model for frozen funds.

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