The native token of Ethereum layer-2 network Blast (BLAST) has made a notable entry into the market, surging 40% following its long-awaited launch. This performance stands out against other high-profile airdrops that have struggled recently.
BLAST Price Rises by 40%
Initially priced at $0.02 per token, BLAST debuted with a fully diluted valuation (FDV) of $2 billion, according to data aggregated from Ambient Finance and the perps trading platform Aevo. Since its launch, BLAST has seen its price rise by over 40%, reaching $0.0281 at the time of publication, based on CoinMarketCap data.
In contrast, other recent token launches have not fared as well. Ethereum layer-2 network zkSync (ZK) and cross-chain interoperability LayerZero (ZRO) tokens have both seen significant declines, falling 46% and 43% from their respective launch prices.
The BLAST Airdrop
The BLAST airdrop released 17% of the token’s total supply. Of this, 7% was allocated to users who bridged Ether (ETH) or USD on Blast (USDB) to the network starting late last year. Another 7% was distributed to users who contributed to the success of decentralized applications (DApps) on the network, while the remaining 3% went to the Blur Foundation for future airdrops to its community.
Despite its positive market reception, the airdrop has faced some criticism. Some market commentators on X (formerly Twitter) expressed disappointment with the launch valuation. Arthur Cheong, co-founder of crypto investment firm DeFiance Capital, remarked that BLAST’s $2 billion FDV was surprising, as he had anticipated a valuation closer to $5 billion.
The Blast network, co-founded by Blur creator Tieshun Roquerre—also known by his pseudonym PacMan—faced criticism from its seed investors in November. They questioned the lack of sufficient features to justify a one-way bridging mechanism that required users to lock up their ETH for several months.
Scam Concerns Amid Airdrop
Like several other high-profile airdrops this year, including that of the cross-chain bridge protocol Wormhole, the Blast airdrop attracted numerous scammers on X. Scammers often exploit large-scale airdrop events by posing as legitimate-looking copycats, capitalizing on the requirement for crypto users to connect their wallets and sign transactions to claim their allotted tokens.
The crypto security service Scam Sniffer identified a user who fell victim to a Blast airdrop scam, losing over $217,000 after signing multiple phishing signatures. These incidents highlight the ongoing risks associated with participating in airdrops, especially as scammers become more sophisticated in their tactics.
The post Blast Token Launch Sees 40% Surge Amid Market Challenges appeared first on Latest News and Insights on Blockchain, Cryptocurrency, and Investing.