Paradigm Responds To Criticism Levied At Its Portfolio Project, Blast

Paradigm’s Dan Robinson says the firm disagrees with Blast’s launch campaign tactics

By: Samuel Haig Loading...

Paradigm Responds To Criticism Levied At Its Portfolio Project, Blast

Paradigm, a leading crypto VC firm and the co-lead investor backing Blast, the controversial Layer 2 network, is taking note of the widespread criticism targeting the forthcoming network.

Blast launched a one-way deposit contract on Nov. 20, allowing users to send ETH and stablecoins to the network. Depositors cannot withdraw their assets until the network’s launch in February, but will earn “Blast Points” in addition to ETH staking rewards derived from Lido and stablecoin yields from MakerDAO.

Blast has already attracted $558M less than one week after enabling deposits. However, critics decry Blast’s minimal security assurances, absence of a working product or even testnet, and careless contribution to Lido’s alarming dominance over the supply of staked ETH.

On Nov. 26, Paradigm’s Dan Robinson took to social media to acknowledge the pushback against Blast.

“There are a lot of components of Blast that I’m excited about… that said, we at Paradigm think the announcement this week crossed lines in both messaging and execution,” Robinson tweeted. “We’ve been discussing our concerns with the team and appreciate their willingness to engage with us, but there are still many points of disagreement.”

Robinson said Paradigm is unhappy with Blast’s decision to launch its bridging contract before deploying its Layer 2, depositors’ inability to withdraw their assets until after three months, and the marketing campaign employed by the Blast team.

“We don’t endorse these kinds of tactics and take our responsibility in the ecosystem seriously,” Robinson continued. “We still think they are world-class builders who can deliver an L2 that brings value to the ecosystem.”

Robinson’s tweet received mixed reactions from the crypto community, receiving praise from some onlookers while others accused Paradigm of disingenuously trying to save face.

“I would be kind of surprised if they did not know it was going to be marketed as an explicit MLM/Ponzi scheme before investing,” tweeted 0xSisyphus, a popular web3 influencer.