This week, the crypto community is abuzz with discussions about Blast, a new Ethereum layer two (L2) platform. The project gained prominence after securing a notable $20 million in funding, spearheaded by Paradigm and Standard Crypto, among other investors. Developed by Pacman, the entrepreneur behind the non-fungible token (NFT) marketplace Blur, Blast has garnered over $400 million in digital assets in the past week. At the same time, the platform has faced significant scrutiny over its mechanics.
Blast, Ethereum's L2 Newcomer, Secures $400M
On November 20, 2023, Tieshun Roquerre, also known as Pacman, unveiled Blast following the project's funding from Standard Crypto, Paradigm, and additional investors. As an Ethereum L2 network, Blast stands out by offering native yields for ethereum (ETH), staked ethereum (STETH), and stablecoins such as DAI, USDT, and USDC, setting it apart from other L2 solutions.
In under a week, Blast has amassed $405 million in value locked, despite being an invite-only platform at present. Although some social media users are distributing Blast invite codes, they have noted that users cannot bridge out or withdraw funds until February 2024.
Controversy Surrounding Blast
The platform's referral system and padded emissions mechanics have led to some labeling it as a "pyramid scheme" and a "Ponzi." David Attermann, co-founder and managing partner at Omnichain Capital, criticized the "investors" and "influencers" promoting this MLM scheme. Despite the criticism, Blast's team, which includes alumni from prestigious institutions such as MIT and Yale, as well as experts from FAANG and Seoul National University, remains committed to the project.
Upcoming Airdrop and Distribution
Blast is preparing for an airdrop, with the distribution split evenly between early access members (50%) and developers (50%). The early access phase is currently active, and developers are set 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, the project is gaining traction and attracting attention from analytics platforms and explorers, including Arkham Intelligence, Dune Analytics, and Defillama. There are also discussions and public disapproval regarding the project's multi-signature mechanism tied to the vault. Blast, however, emphasizes the nuanced and spectrum-based nature of security in a post published on Friday. According to the startup, upgradeable contracts, despite their perceived vulnerabilities, can offer more security in certain scenarios, particularly in token-gated, time-locked mechanisms.
What's your opinion about Blast's rapid rise and the criticism it has received? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
How is gold taxed within an IRA?
The fair market value at the time of sale is what determines how much tax you pay on gold sales. Gold is not subject to tax when it's purchased. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
You can use gold as collateral to secure loans. When you borrow against your assets, lenders try to find the highest return possible. For gold, this means selling it. It's not guaranteed that the lender will do it. They may just keep it. Or they might decide to resell it themselves. Either way you will lose potential profit.
If you plan on using your gold as collateral, then you shouldn't lend against it. If you don't plan to use it as collateral, it is better to let it be.
Is the government allowed to take your gold
Your gold is yours, so the government cannot confiscate it. It is yours because you worked hard for it. It belongs to your. This rule may not apply to all cases. You can lose your gold if you have been convicted for fraud against the federal governments. Your precious metals can also be lost if you owe tax to the IRS. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
How much money should I put into my Roth IRA?
Roth IRAs are retirement accounts where you deposit your own money tax-free. You can't withdraw money from these accounts before you reach the age of 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, you cannot touch your principal (the original amount deposited). This means that you can't take out more money than you originally contributed. If you take out more than the initial contribution, you must pay tax.
You cannot withhold your earnings from income taxes. Withdrawing your earnings will result in you paying taxes. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. The federal income tax on your earnings would amount to $3,500. The remaining $6,500 is yours. The amount you can withdraw is limited to the original contribution.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. In addition, 50% of your earnings will be subject to tax again (half of 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types if Roth IRAs: Roth and Traditional. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You can withdraw as much as you want from a traditional IRA.
Roth IRAs don't allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
What does gold do as an investment?
The price of gold fluctuates based on supply and demand. It is also affected negatively by interest rates.
Due to their limited supply, gold prices fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Should You Invest in gold for Retirement?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you are unsure which option to choose, consider investing in both options.
In addition to being a safe investment, gold also offers potential returns. Retirees will find it an attractive investment.
Gold is more volatile than most other investments. Because of this, gold's value can fluctuate over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another advantage of gold is its tangible nature. Gold is less difficult to store than stocks or bonds. It's also portable.
You can always access your gold if it is stored in a secure place. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. Gold usually rises when stocks fall.
Another benefit to investing in gold? You can always sell it. You can also liquidate your gold position at any time you need cash, just like stocks. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Don't purchase too much at once. Start small, buying only a few ounces. Then add more as needed.
The goal is not to become rich quick. It is to create enough wealth that you no longer have to depend on Social Security.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads and Example. Risk Metrics
Tips for Investing with Gold
Investing in Gold is one of the most popular investment strategies worldwide. Because investing in gold has many benefits. There are many options for investing in gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
You should consider some things before you decide to purchase any type of gold.
- First, you must check whether your country allows you to own gold. If so, then you can proceed. Or, you might consider buying gold overseas.
- The second is to decide which kind of gold coin it is you want. There are many options for gold coins: yellow, white, and rose.
- Thirdly, you should take into consideration the price of gold. It is best to begin small and work your ways up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- Last but not least, remember that gold prices fluctuate frequently. Keep an eye on current trends.
By: Jamie Redman
Title: Ethereum L2 Platform Blast Draws $400M in a Week Despite Invite-Only Access and Criticism
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