Blast Protocol’s Marketing Criticized by Paradigm Investors

Paradigm, one of the initial investors in Blast, expressed disapproval of the protocol’s choice to introduce a bridge before establishing its Layer-2 functionality and withdrawal capability.

Paradigm has raised concerns about Blast’s approach to marketing its protocol. The startup, in which Paradigm is a seed investor, has faced criticism from the VC firm for what they perceive as issues in both communication and implementation.

Dan Robinson, the head of research at Paradigm, voiced his disagreement on the social media platform Twitter. He specifically pointed out his reservations regarding Blast’s choice to introduce a bridge before its layer-2 network and the decision to restrict withdrawals for three months.

There are a lot of components of Blast that I’m excited about and would be interested in engaging with people on. That said, we at Paradigm think the announcement this week crossed lines in both messaging and execution. For example, we don’t agree with the decision to launch the…

— Dan Robinson (@danrobinson) November 26, 2023

Paradigm isn’t the only one expressing concerns about Blast’s recent launch. Jarrod Watts, a developer relations engineer at Polygon Labs, highlighted a significant security risk due to Blast’s centralized nature. 

Watts pointed out that Blast uses a 3/5 multi-sig system, meaning that if an attacker gets hold of three out of five team members’ keys, they could potentially steal all the cryptocurrency deposited into Blast’s contracts.

Watts also clarified that Blast shouldn’t be considered a layer 2 solution. Instead, it acts as a platform that accepts funds from users and stakes those funds into protocols like LIDO, without utilizing any bridges or testnet. 

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2023-11-27 01:25