Introduction
This week, there has been a lot of buzz in the crypto community surrounding Blast, a new Ethereum layer two (L2) platform. The project recently raised an impressive $20 million in funding, led by Paradigm and Standard Crypto, among other investors. Blast, developed by Pacman, the entrepreneur behind the non-fungible token (NFT) marketplace Blur, has already accumulated over $400 million in digital assets in just one week. However, the platform has also faced scrutiny regarding its mechanics.
Blast's Funding and Unique Features
Tieshun Roquerre, also known as Pacman, unveiled Blast on November 20, 2023, after securing funding from Standard Crypto, Paradigm, and other investors. Blast differentiates itself as an Ethereum L2 network by offering native yields for ethereum (ETH), staked ethereum (STETH), and stablecoins like DAI, USDT, and USDC. This sets it apart from other L2 solutions available in the market.
Rapid Growth and Limitations
In less than a week, Blast has managed to accumulate $405 million in locked value, despite being an invite-only platform for now. Although some social media users are sharing Blast invite codes, it is important to note that users cannot bridge out or withdraw funds until February 2024.
However, there have been concerns about the platform's referral system and padded emissions mechanics, with some labeling it as a "pyramid scheme" or a "Ponzi." David Attermann, co-founder and managing partner at Omnichain Capital, expressed his disapproval, stating that it reflects poorly on the "investors" and "influencers" promoting this MLM scheme.
The Team and Airdrop Plans
Blast's team includes not only Pacman but also alumni from prestigious institutions like MIT, Yale, and Nanyang Technological University, as well as experts from FAANG and Seoul National University. The platform's referral system features a leaderboard that ranks members based on the points they earn for bridging assets and inviting friends.
Blast is also preparing for an airdrop, with the distribution divided equally between early access members (50%) and developers (50%), as outlined on their website. The early access phase is currently active, and developers can expect to receive their share of the airdrop in January, coinciding with the launch of the Blast Testnet. Early access participants will have to wait until May for their airdrop.
Observation and Security Concerns
Despite skepticism surrounding Blast, similar to the early days of Blur, the project is gaining significant traction. Analytical platforms and explorers like Arkham Intelligence, Dune Analytics, and Defillama are closely monitoring this decentralized finance protocol.
There have also been discussions and public disapproval regarding the project's multi-signature mechanism tied to the vault. Blast, however, emphasized the nuanced and spectrum-based nature of security in a post published on Friday. The startup believes that upgradeable contracts, despite their perceived vulnerabilities, especially in token-gated, time-locked mechanisms, can offer enhanced security in certain scenarios.
Share Your Thoughts
What is your opinion on Blast's rapid rise and the criticism it has received? We would love to hear your thoughts and opinions on this subject in the comments section below.
Frequently Asked Questions
How much are gold IRA fees?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes account maintenance and any investment costs.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer free checking, but charge monthly fees for IRAs.
Most providers also charge annual management costs. These fees are usually between 0% and 1%. The average rate is.25% per year. These rates can be waived if the broker is TD Ameritrade.
Can I own a gold ETF inside a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow for contributions from both employees and employers. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
Also available is an Individual Retirement Annuity. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs will not be taxed
What is the Performance of Gold as an Investment?
The price of gold fluctuates based on supply and demand. It is also affected negatively by interest rates.
Because of their limited supply, gold prices can fluctuate. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How can you withdraw from an IRA of Precious Metals?
First decide if your IRA account allows you to withdraw funds. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option will require you to pay taxes on the amount that you withdraw.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
Once you have completed these calculations, you need to open your brokerage account. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities can accept bullion bar, while others require you buy individual coins. You will need to weigh each one before making a decision.
Bullion bars are easier to store than individual coins. But, each coin must be counted separately. However, individual coins can be stored to make it easy to track their value.
Some people prefer to keep their coins in a vault. Others prefer to place them in safe deposit boxes. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
How Much of Your IRA Should Include Precious Metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. They don't require you to be wealthy to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You might consider purchasing physical coins, such as bullion bars and rounds. Shares in precious metals-producing companies could be an option. Your retirement plan provider may offer an IRA rollingover program.
You can still get benefits from precious metals regardless of what choice you make. These metals are not stocks, but they can still provide long-term growth.
And, unlike traditional investments, their prices tend to rise over time. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
What are the advantages of a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You have complete control over how much you take out each year. There are many types and types of IRAs. Some are better for those who want to save money for college. Some are for investors who seek higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. However, once they begin withdrawing funds, these earnings are not taxed again. So if you're planning to retire early, this type of account may make sense.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. For people who would rather invest than spend their money, gold IRA accounts are a good option.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. It means that you don’t have to remember to make deposits every month. To avoid missing a payment, direct debits can be set up.
Finally, gold is one of the safest investment choices available today. Because it's not tied to any particular country, its value tends to remain steady. Even in economic turmoil, gold prices tends to remain relatively stable. This makes it a great investment option to protect your savings from inflation.
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
bbb.org
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement account
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ
How To
Tips for Investing in Gold
Investing in Gold is one of the most popular investment strategies worldwide. This is due to the many benefits of investing in gold. There are many options for investing in gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
You should consider some things before you decide to purchase any type of gold.
- First, verify that your country permits gold ownership. If the answer is yes, you can go ahead. You might also consider buying gold in foreign countries.
- Second, it is important to know which type of gold coin you are looking for. You have options: you can choose from yellow gold, white or rose gold.
- Third, consider the cost of gold. It is best to begin small and work your ways up. You should diversify your portfolio when buying gold. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Don't forget to keep in mind that gold prices often change. Keep an eye on current trends.
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By: Jamie Redman
Title: Blast: Ethereum's L2 Newcomer That Secures $400M
Sourced From: news.bitcoin.com/ethereum-l2-platform-blast-draws-400m-in-a-week-despite-invite-only-access-and-criticism/
Published Date: Fri, 24 Nov 2023 23:30:26 +0000
