Layer 2 Project Suffers 500 ETH Rug Pull Onslaught

Blast Network’s layer 2 project, RiskOnBlast, has fallen victim to a significant exploit commonly referred to as a rug pull, resulting in the loss of approximately 500 Ether (ETH).

Investors and analysts are now raising questions about the scrutiny involved in the RiskOnBlast venture, which was backed by anonymous founders with no established reputation.

The Blast project RiskOnBlast is suspected of being Rugpull. Twitter and the website can no longer be opened. It may be the first Rugpull project on Blast. It raised a total of 420 ETH, worth approximately $1.25 million. Etherscan has flagged 0x1E…C558 as a phishing/scam.…

— Wu Blockchain (@WuBlockchain) February 25, 2024

Blast Network’s Reputation At Stake After Rug Pull

The reputation of the Blast network, a layer 2 solution built for Ethereum, is now at stake following the suspected rug pull in the RiskOnBlast project.

The platform, which garnered attention with its optimistic roll-up technology and ability to host Ethereum decentralized applications (dapps) without codebase changes, had gained significant traction in the crypto space, boasting high-profile backers like Paradigm.

However, the exploit has cast doubt on the security protocols of the Blast ecosystem, leading to skepticism among users and stakeholders.

This incident has sent shockwaves through the crypto community, particularly because it marks the first rug pull of its kind within Blast’s layer 2 ecosystem.

Investors, such as MoonCat2878, have come forward to share their personal losses and express frustration with the Blast network. MoonCat2878, who initially saw promising signals from reputable accounts and partnerships within the Blast ecosystem, now regrets not investigating further.

Ethereum trading at $3,063 on the 24-hour chart: TradingView.com

Attempts to seek clarity from the RiskOnBlast team yielded delayed and unsatisfactory responses, raising red flags that were unfortunately validated when the project resulted in substantial investor losses.

Full transparency update on the first RUG on @Blast_L2 called RiskOnBlast

I am going to donate 1 ETH to @zachxbt tomorrow when back at home and hope he is able to help a bit to recover funds, I also am going to donate my $ 12,500 to Zach if he gets that back

So let’s dig in,… https://t.co/VjUd3qIR5a

— MoonCat2878 (@mooncat2878) February 25, 2024

Blokzi.eth, another Blast user, highlighted the platform’s endorsement of RiskOnBlast as a factor that led to misplaced trust. The endorsement from Blast created a sense of legitimacy that was shattered by the rug pull, causing financial harm to investors.

Call For Action And Rectification

As news of the rug pull spreads, voices within the crypto world are calling for action and rectification. The tech community, including notable figures like Coinbase’s Andrew Choi, is actively engaging in discussions to understand how such a breach of trust could occur within a growing blockchain network.

Did @RiskOnBlast on Blast L2 really pull a rug by deleting their website, twitter, discord after raising 1M+ in presale just now? pic.twitter.com/IrhgAfLd9s

— andrewchoi.sol (🍯) (@AndrewChoi5) February 25, 2024

The incident has prompted a broader examination of the security protocols and due diligence processes within the Blast ecosystem. Meanwhile, MoonCat2878 have pledged their support to fund recovery efforts, offering donations to blockchain investigators like ZachXBT.

Featured image from Pixabay, chart from TradingView