Crypto venture capital firm Paradigm criticized Blast’s protocol marketing strategy, saying the startup “crossed the line in both messaging and execution.” The venture capital firm is a seed investor in Blast.
Paradigm’s head of research, Dan Robinson, sharing a statement on “We think this sets a bad precedent for other projects,” Robinson wrote, adding that “much of the marketing belittles the work of a serious team.”
There are many components of Blast that I’m passionate about and would be interested in interacting with people about. That said, we at Paradigm believe this week’s announcement crossed a line both in terms of message and execution. For example, we do not agree with the decision to launch the…
-Dan Robinson (@danrobinson) November 26, 2023
Paradigm has been in contact with Blast about its concerns, Robinson noted, emphasizing that “there are still many areas of disagreement” between the companies.
Despite the criticism, the research head also acknowledged that the Blast team is made up of “world-class builders” with a “demonstrated ability to create great products.” Blast’s governance structure is unclear, as is Paradigm’s role in the startup’s decision-making process. According to Robinson:
“We invest in strong, independent founders who we don’t always agree with. But we understand that people can look to us to set an example for best practices in crypto. We don’t endorse not this kind of tactic and let’s take our responsibility in the ecosystem seriously.
Paradigm isn’t the first company to address Blast’s recent launch. Jarrod Watts, developer relations engineer at Polygon Labs, said network centralization poses a significant security risk.
Additionally, Watts noted that Blast “is only a 3/5 multisig,” meaning that if an attacker gains access to the keys of three out of five team members, they can steal all of the deposited cryptocurrencies in Blast contracts.
Watts also claimed that Blast “is not layer 2” but simply “accepts user funds” and “puts user funds into protocols like LIDO” without using bridges or a testnet. Additionally, he criticized the lack of opt-out functionality. To opt out in the future, users need to trust that developers will add opt out functionality in the future.
Despite controversy surrounding its launch, Blast has amassed over $555 million in total value locked (TVL) since its launch a few days ago. The protocol claims to be “the only Ethereum L2 with native yield for ETH and stablecoins.” An airdrop is planned for January.
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