Crypto VC Firm Paradigm Criticizes Blast's Marketing Strategy

Paradigm Raises Concerns

Crypto venture capital firm Paradigm has criticized the marketing strategy of blockchain startup Blast, claiming that the company has "crossed lines in both messaging and execution." Paradigm, which is a seed investor in Blast, expressed disagreement with Blast's decision to launch a bridge before its layer-2 network and to not allow withdrawals for three months. The head of research at Paradigm, Dan Robinson, stated that these actions set a bad precedent for other projects and cheapen the work of a serious team.

Points of Disagreement

Robinson noted that Paradigm has been in contact with Blast regarding its concerns, but there are still many points of disagreement between the two companies. While acknowledging that Blast has a team of world-class builders with the ability to create great products, the governance structure of Blast and Paradigm's role in the startup's decision-making process remain unclear. Robinson emphasized that Paradigm does not endorse these tactics and takes its responsibility in the crypto ecosystem seriously.

Other Criticisms

Paradigm is not the only company to address Blast's recent launch. Jarrod Watts, a developer relations engineer at Polygon Labs, raised concerns about the network's centralization, stating that it poses a significant security risk. Watts also criticized Blast's lack of withdrawal functionality, noting that users must trust that developers will add withdrawal functionality in the future.

Despite Controversy, Blast Gains TVL

Despite the criticism surrounding its launch, Blast has managed to accumulate over $555 million in total value locked (TVL) since its recent launch. The protocol claims to be the only Ethereum layer-2 network with native yield for ETH and stablecoins. An airdrop is scheduled for January.