Ethereum
Explosion Price Rebounds After Massive Ethereum Layer-2 Airdrop
The explosions long-awaited airdrop of his Ethereum On Wednesday, the token faced significant price volatility, some apparent disappointment from users and a increase in fraudulent tweets trying to squeeze funds from enthusiastic traders. But the price gradually increased during the day.
The token debuted on Wednesday at around $0.025, but then declined in price, dropping to around $0.020. But over the course of the day, it gradually climbed to a high price above $0.029, allaying some traders’ fears that BLAST would continue to fall.
It has since dropped, however, it sits at a current price around $0.024according to data from CoinGecko. It is up about 10% in the last 24 hours.
The highly anticipated drop was distributed approximately $354 million value Blast tokens to the community after months of incentive-driven hype around the network, creating initial excitement among users.
THE Ethereum Layer 2 scaling network, from the founder of NFT Blur marketplace, has grown into a community of around a million people within four months, according to a statement published Wednesday on his Twitter account (alias X).
However, the celebration that greeted its launch was short-lived, as scams and community discontent quickly surfaced.
Arthur Cheong, founder and chief investment officer of DeFiance Capital, noted that the initial fully diluted (FDV) valuation of $2 billion was below expectations.
“Given the way the previous L2 [have] negotiated at launch”, Cheong tweeted“I was expecting at least $5 billion FDV.”
“The days of highly anticipated infrastructure projects trading at over $20 billion in present value at launch are likely over,” he added.
Besides a failed initial valuation, many members of its community have fallen victim to scammers exploiting the frenzy surrounding the airdrop.
Verified Twitter users with gold checks– offered to verified organizations and their employees or affiliates – were among those disseminating fraudulent links and misleading information, leading to significant financial losses for some.
This situation has drawn attention to persistent vulnerabilities in the crypto space, particularly during high-profile events like airdrops. At least a dozen accounts with gold checkmarks spread false information while pretending to be the official Blast account.
“Be wary of accounts that try to impersonate Blast,” the token’s official X account warned on Wednesday.
According to Scam detectiveone victim lost $218,000 to scammers within hours of launch “due to signing multiple phishing signatures.” Amidst the chaos, Blast’s price saw a sharp decline, causing disappointment among investors and enthusiasts.
Initially, the price fell as holders rushed to sell their airdropped tokens, causing the market value to plummet. This sharp price drop was exacerbated by negative sentiment stemming from scams and general discontent within the community.
Edited by Andre Hayward