TL;DR
RiskOnBlast Vanishes: The gambling and exchange platform RiskOnBlast, based on the Blast layer-2 ecosystem, has disappeared, allegedly taking with it over 420 ether. This is suspected to be the first rug pull on Blast.
Funds Transferred: The funds raised from over 750 wallets were found to have been transferred in large amounts to various platforms including ChangeNow, MEXC, and Bybit.
Blast Ecosystem Backlash: The Blast ecosystem is facing backlash for endorsing the RiskOnBlast project. Despite not having direct control over the activities of projects on its blockchain, the social endorsement could be interpreted by investors as a mark of authenticity.
RiskOnBlast, a gambling and exchange platform based on the Blast layer-2 ecosystem, has disappeared, allegedly taking with it over 420 ether. This incident, suspected to be the first rug pull on Blast, has left the crypto world reeling. The exchange had raised over $1 million from investors in a seed round just last week.
The funds, raised from over 750 wallets, were later found to have been transferred in large amounts to various platforms. Close to $500,000 was transferred to the exchange service ChangeNow, $360,000 was dispatched to the cryptocurrency exchange MEXC, and Bybit received $187,000. The sudden disappearance of RiskOnBlast’s website and social media presence raised alarms.
The project’s address has been flagged as a phishing scam on Etherscan. The team behind RiskOnBlast, which was anonymous, has seemingly vanished. The Blast ecosystem, an Ethereum layer-2 project that has attracted over $1 billion in capital in recent months, saw its first rug pull event with this incident.
The Blast Ecosystem Faces Backlash for Endorsing the RiskOnBlast Project
A rug pull is a type of exit scam where a team raises money from investors and the public by selling a token, only to quietly shut down shortly afterward. The event has ignited disapproval due to the absence of proper scrutiny and reckless financial gambles on initiatives that appear to be established hastily. An investor reported a loss exceeding $12,500.
The Blast team had previously posted about RiskOnBlast on its official handle, terming its potential as “undeniable”. Although Blast does not have direct control over the activities of projects on its blockchain, the social endorsement could be interpreted by investors as a mark of authenticity.
The Blast protocol, introduced in mid-November, serves as a scaling solution for the Ethereum network. It offers native yields to those who stake their assets. Since its inception, it has amassed a total value of $2 billion, primarily from individuals seeking airdrops, as the platform pledged an airdrop event in May. Despite its success, the platform has faced several challenges, including bugs and controversies, in the months following its launch.