Blast Token Launch Sees 40% Surge Amid Market Challenges

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.