KEYTAKEAWAYS
- BLAST token rallies 40% after launch, reaching $0.0281.
- Airdrop distributes 17% of total supply to various user groups.
CONTENT
Ethereum layer-2 network Blast’s native token BLAST debuts at $0.02, reaching a $2 billion fully diluted value. The successful launch contrasts with recent high-profile token declines, despite criticism over valuation expectations.
The cryptocurrency market witnessed a significant event as Blast, an Ethereum layer-2 network, launched its native token BLAST with a remarkable 40% surge following its debut. The token’s initial price of $0.02 placed its fully diluted value (FDV) at $2 billion, according to data from Ambient Finance and Aevo.
BLAST’s performance stands out in contrast to recent high-profile token launches. Ethereum layer-2 network zkSync (ZK) and cross-chain interoperability protocol LayerZero (ZRO) experienced declines of 46% and 43% respectively from their launch prices. This divergence has caught the attention of crypto enthusiasts and investors alike.
The airdrop, a highly anticipated event in the crypto community, distributed 17% of BLAST’s total supply. Users who bridged Ether or USD to the Blast network since late last year received 7% of the allocation. Another 7% was distributed to users who contributed to the success of decentralized applications (DApps) on the network. The Blur Foundation received 3% for future airdrops to its community.
Despite the positive price action, the launch valuation attracted some criticism from market commentators. Arthur Cheong, co-founder of crypto investment firm DeFiance Capital, expressed surprise at the $2 billion FDV, having expected a value closer to $5 billion.
The Blast network, co-founded by Blur creator Tieshun Roquerre (known as PacMan), faced earlier criticism from seed investors. In November, concerns were raised about the network’s lack of features to justify its one-way bridging mechanism, which required users to lock up their ETH for several months.
As with other recent high-profile airdrops, the Blast event attracted numerous scams across social media platforms. Crypto security service Scam Sniffer reported a user losing over $217,000 after falling victim to a phishing scam related to the Blast airdrop.
The successful launch of BLAST and its subsequent price rally demonstrate the continued interest in layer-2 solutions and new token offerings in the cryptocurrency space. However, it also highlights the ongoing challenges of security and valuation expectations in the rapidly evolving blockchain ecosystem.
