Institutional Investors Shunned, Retail Investors Thrilled by Blast Airdrop

Recently, the Blast airdrop has become a hot topic within the blockchain community, with the distribution of its token, BLAST, garnering significant attention. Institutional investors have shown mixed reactions, while retail investors are overwhelmingly positive. But which trading platforms will support BLAST?

The Impact of the Blast Airdrop on the Cryptocurrency Market

Unlike previous airdrops, searching for “blast” on Twitter yields numerous positive reviews. In the first phase of the airdrop, BLAST token holders and gold point holders will each receive 7 billion BLAST tokens, while the Blur Foundation will receive 3 billion BLAST tokens. Notably, the Blast airdrop does not screen for bot accounts, which has been well-received by organized trading groups.

Community feedback suggests that users who diligently complete dapp tasks or remain consistently engaged can earn significant gold points, often at a low cost, and potentially double their investments. Consequently, many on Twitter believe the token’s price is undervalued.

However, the situation for Blur has not been as smooth. Despite announcing the launch of its fourth season rewards and loyalty program, it still faces sell-off pressures. On-chain data analyst Yu Jin reported that two BLUR staking whales partially unlocked their BLAST airdrops and transferred them to centralized exchanges, causing a temporary price drop. Additionally, the contract for claiming the third season Blur airdrop malfunctioned, resulting in some users paying over $1,000 in gas fees. Despite these issues, retail investors and organized groups remain enthusiastic, even hailing the Blast founder Pacman as a genius, while institutional investors feel betrayed.

Ongoing PUA Practices Leave Institutional Investors Feeling Betrayed

The airdrop announcement stated that large holders would have their airdrops vested linearly, with the top 0.1% of users (approximately 1,000 wallets) receiving their airdrops over six months, contingent on meeting monthly point thresholds. This unexpected lock-up has frustrated large investors, who now face the risk of the tokens being worthless in six months due to the current market downturn.

Currently, the Blast website shows the top user @beijingduck2023 with around 281.2 billion points and 1.22 million gold points, receiving 64,000 BLAST tokens valued at only $1,664. Christian, co-founder of NDV, claims to have invested over $50 million in Blast, receiving 20,912,000 BLAST tokens worth approximately $540,000, but can only claim $100,000 worth due to the linear vesting. He views Blast as a scam and accuses Pacman of being a serial scammer, posting a lengthy critique detailing his grievances.

Christian argues that Blast missed its optimal launch window. Had the token been launched during the favorable market conditions in March, participants would have benefited, and large investors would have been willing to lock up their tokens. However, delays have lowered market expectations, leading OKX and BN to withdraw their support.

So I deposited over $50M on @Blast_L2 and get $100k airdrop on TGE.
Now I am pretty sure @Blast_L2 is a scam project and @PacmanBlur is a “serial rug entrepreneur”.
Never blocked anyone in CT before, he made it. I felt so shame to trust him before.
This will be my last tweet… pic.twitter.com/G4f3x2gdUC

— Christian2022.eth (@Christianeth) June 26, 2024

The primary issues stem from technical shortcomings and outdated infrastructure. Despite the promising yield model, poor cross-chain bridge experiences and the inability to directly withdraw tokens from exchanges have hindered retail participation. Furthermore, the project’s ongoing PUA tactics, delaying from March to late June, have frustrated large investors who face another six months of PUA.

Christian also highlighted liquidity problems, noting that the project team lacks traditional DeFi experience, leading to poor liquidity management. Large investors are crucial for maintaining token prices and ecosystem liquidity, whereas exchange data can be manipulated with fake volumes, leaving fundamentals reliant on large investors.

Despite a relatively decentralized distribution of gold points, they remain controlled by small interest groups. Although Christian is an investor in part of the project, he believes such ties harm the long-term ecosystem. Lastly, he criticizes Pacman for being irresponsible, missing scheduled calls without apologies.

Vis initially invested over 10,000 ETH in Blast but exited early, yielding zero returns in the first three months. Blur’s top five bidder @GCsheng noted that Blast’s claiming rules favor early claimants, with those holding fewer tokens facing longer wait times.

Trading Platforms Rush to List BLAST

As the Blast airdrop approaches, Upbit has already announced its listing of Blast tokens. Coinbase followed suit, joining the list of exchanges supporting BLAST. This endorsement from major exchanges has undoubtedly boosted BLAST’s secondary market price.

On June 26, the Blast airdrop proceeded as scheduled. According to official information, the exact relationship between points and token airdrops remains unclear. However, it is suggested that the highest-ranked user, with around 23 billion points, might receive 50 million tokens valued at approximately $1.5 million. Additionally, Blast allocated 220 million BLAST tokens to six market makers to ensure stable trading post-launch.

Mixed Market Reactions

While the Blast airdrop has attracted market attention, reactions are mixed. Some users have suffered significant losses through phishing sites posing as Blast, prompting official warnings against scams. Others have expressed dissatisfaction with the airdrop’s returns, feeling that it lacks sincerity. Nevertheless, following the TGE, BLAST performed strongly, with a fully diluted valuation exceeding $2.6 billion within an hour and a daily increase of over 20%.

Overview and Token Economics of Blast

Blast, built on the Optimistic Rollup Layer2 network by Blur founder Pacman, offers various incentives such as points, gold, airdrops, and yields to attract users and developers. With $20 million in total funding, Blast’s mainnet launched in March this year. Its total token supply is 100 billion, with 50% allocated to the community.

As an emerging Layer2 blockchain, Blast offers users new ways to earn yields by bridging assets. Its unique incentives have successfully attracted numerous users and developers. Within the Blast ecosystem, projects like Ambient, Juice, Synfutures, nftperp, and Munchables provide ample earning opportunities.

Developed by Pacman with support from Paradigm, Blast aims to create native Layer2 yields. Users deposit tokens into Layer2 through smart contracts linked to Layer1, earning yields even when tokens are idle. Blast recommends converting ETH and stablecoins to stETH and DAI, respectively, to maximize yields from staking and treasury rewards.

Analyzing Blast’s Token Economics

Blast’s tokenomics cater to the community, core contributors, investors, and the foundation:

• Community: 50,000,000,000 (50%) allocated to users and builders, distributed through incentives and linearly unlocked over three years from TGE.
• Core Contributors: 25,480,226,842 (25.5%) with a four-year lock-up period.
• Investors: 16,519,773,158 (16.5%) also locked for four years to ensure market stability.
• Blast Foundation: 8,000,000,000 (8%) for infrastructure and ecosystem development.

Blast Airdrop Rules

The Q2 report detailed the first-round airdrop rules, distributing 17% (17 billion tokens) to users:

• Blast Points: 7,000,000,000 (7%) for initial liquidity providers.
• Blast Gold Points: 7,000,000,000 (7%) for dapp contributors.
• Blur Foundation: 3,000,000,000 (3%) for retrospective and future airdrops.

Price Predictions and Market Analysis

Before the launch, many experts and institutions predicted Blast’s price based on market conditions and token economics. Currently, Blast’s TVL is $2.56 billion, with nearly 1.6 million users. Despite varying airdrop values, Blast’s overall price and market potential appear promising.

Long-term, Blast’s market potential is influenced by several factors. Layer2 solutions are becoming increasingly important for enhancing blockchain scalability and performance while reducing costs. As more users and developers join the Layer2 ecosystem, Blast stands to benefit from the industry’s growth. Furthermore, Blast’s tokenomics emphasize community and contributor involvement, fostering a vibrant ecosystem and enhancing BLAST’s value.

Future Development and Strategies

To succeed, Blast must:

• Innovate technologically: Enhance Layer2 technology, improve transaction speed and security, and explore interoperability.
• Build the ecosystem: Collaborate with more dapps, expand applications, and incentivize developers to create innovative solutions.
• Engage the community: Increase interaction, gather feedback, and enhance belonging through incentives and transparent governance.
• Market effectively: Boost awareness and influence, partnering with major exchanges and media outlets.
• Maintain transparency: Ensure fairness, build trust, and regularly update progress and reports.

In conclusion, as a burgeoning Layer2 blockchain project, Blast has significant market potential. We look forward to its continued development and the value it creates for users and investors.

Challenges and Development Facing Blast

Cybersecurity experts warn that Blast’s reliance on MakerDAO could pose “significant financial risks.” Resonance Security analysts noted that MakerDAO, which generates 5% yield for USDB, hasn’t released a smart contract security audit in three years. Issues with Lido or MakerDAO’s pools or protocols could impact Blast users’ tokens. While third-party integrations are not inherently negative, MakerDAO’s audits, some dating back five years, raise concerns.

Experts stress the importance of security measures, including regular audits and bug bounty programs. Resonance Security recommends Blast and its partners adhere to “strict security standards.”

Following the airdrop, Blast’s price fluctuated, initially surging to approximately $0.029 before stabilizing around $0.024, with a 10% increase in the past 24 hours.

The airdrop sparked mixed reactions, distributing around $354 million in tokens and attracting about a million users, yet falling short of expected valuations. DeFiance Capital founder Arthur Cheong believed it should have reached at least $5 billion.

Scams targeting the community have also emerged, with some users losing significant amounts, contributing to negative sentiment and price drops.

Conclusion

The Blast airdrop has garnered considerable attention, with its tokenomics and potential under scrutiny. While facing competition and challenges, Blast’s success hinges on technological innovation, ecosystem building, and effective strategies. As more users and developers join, its future potential looks promising. We will continue to monitor its progress and the opportunities it creates.