Introduction
The crypto community is buzzing with excitement as Blast, a new Ethereum layer two (L2) platform, gains prominence. With a notable $20 million in funding from investors like Paradigm and Standard Crypto, Blast is making waves in the digital asset space. Developed by Pacman, the entrepreneur behind the popular non-fungible token (NFT) marketplace Blur, Blast has already amassed over $400 million in digital assets within a week of its launch. However, the platform has also faced scrutiny regarding its mechanics.
Unveiling Blast: A Game-Changing Ethereum L2 Network
On November 20, 2023, Tieshun Roquerre, known as Pacman, introduced Blast to the world. The project received funding from Standard Crypto, Paradigm, and other investors. Blast stands out among other Ethereum L2 solutions by offering native yields for Ethereum (ETH), staked Ethereum (STETH), and stablecoins like DAI, USDT, and USDC.
Rapid Growth and Invitations
Despite being an invite-only platform currently, Blast has already locked in a staggering $405 million in value within a week. While some social media users are sharing Blast invite codes, it's important to note that users cannot bridge out or withdraw funds until February 2024.
The Pyramid Scheme Controversy
Blast's referral system and padded emissions mechanics have led some to label it as a "pyramid scheme" or a "Ponzi." David Attermann, co-founder and managing partner at Omnichain Capital, criticized the project, stating that it gives a negative image to investors and influencers who promote this MLM scheme on social media.
The Team Behind Blast
Blast boasts an impressive team, including Pacman and alumni from prestigious institutions like MIT, Yale, and Nanyang Technological University. The team also consists of experts from FAANG (Facebook, Amazon, Apple, Netflix, Google) 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.
Upcoming Airdrop and Developer Incentives
Blast is preparing for an airdrop, with a 50% distribution to early access members and a 50% allocation to developers. 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. However, early access participants will have to wait until May to receive their airdrop.
Skepticism and Traction
Despite some skepticism surrounding Blast, similar to the early days of Blur, the project is gaining significant traction. It is closely monitored on popular analytics platforms and explorers such as Arkham Intelligence, Dune Analytics, and Defillama.
The Multi-Signature Mechanism and Security
There have been discussions and public disapproval regarding Blast's multi-signature mechanism tied to the vault. In response, Blast published an informative post emphasizing the nuanced and spectrum-based nature of security. The startup believes that upgradeable contracts, despite their perceived vulnerabilities, can offer more security in certain scenarios, especially in token-gated, time-locked mechanisms.
Share Your Thoughts
What are your thoughts on Blast's rapid rise and the criticism it has received? We invite you to share your opinions and join the discussion in the comments section below.
Frequently Asked Questions
What is the tax on gold in an IRA
The tax on the sale of gold is based on its fair market value when sold. When you purchase gold, you don't have to pay any taxes. It is not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
As collateral for loans, gold is possible. Lenders will seek the highest return on your assets when you borrow against them. For gold, this means selling it. However, there is no guarantee that the lender would do this. They may just keep it. Or, they may decide to resell the item themselves. You lose potential profits in either case.
You should not lend against your gold if it is intended to be used as collateral. You should leave it alone if you don't intend to lend against it.
Can I buy Gold with my Self-Directed IRA?
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. You can speculate on future prices, but not own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
What Is a Precious Metal IRA?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These rare metals are often called “precious” as they are very difficult to find and highly valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals are often referred to as “bullion.” Bullion refers only to the actual metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This means you'll receive dividends every year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you pay only a small percentage tax on your gains. Plus, you get free access to your funds whenever you want.
Do You Need to Open a Precious Metal IRA
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. You cannot recover any money you have invested. This includes investments that have been damaged by fire, flooding, theft, and so on.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items are timeless and have a lifetime value. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Consider a reputable business that offers low rates and good products when opening an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
If you decide to open an account, remember that you won't see any returns until after you retire. Remember the future.
What are the pros & cons of a Gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are disadvantages to this type investment.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
You can purchase insurance if you want to keep your money out of a bank. In order to make a claim, most insurers will require that you have a minimum amount in gold. You might be required to buy insurance that covers losses up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. You may be limited in the amount of gold you can have by some providers. Others let you pick your weight.
You'll also need to decide whether to buy physical gold or futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts provide flexibility for purchasing gold. Futures contracts allow you to create a contract with a specified expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. The policy does not cover natural disasters. If you live in a high-risk area, you may want to add additional coverage.
Apart from insurance, you should consider the costs of storing your precious metals. Insurance doesn't cover storage costs. Banks charge between $25 and $40 per month for safekeeping.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must keep your assets for as long you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). You should also specify how much you want to invest each month.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. After reviewing your application, the company will send you a confirmation mail.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. It is also an excellent way to diversify you portfolio. There is much more to gold than meets your eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the most ancient currency in the universe.”
Gold, unlike other paper currencies created by governments is mined directly from the earth. Because it is rare and difficult to make, it is extremely valuable.
Gold prices fluctuate based on demand and supply. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. The result is that gold's value increases.
On the flip side, people save cash for emergencies and don't spend it. This causes more gold to be produced, which lowers its value.
It is this reason that gold investing makes sense for businesses and individuals. If you have gold to invest, you will reap the rewards when the economy expands.
Your investments will also generate interest, which can help you increase your wealth. Additionally, you won't lose cash if the gold price falls.
How Does Gold Perform as an Investment?
The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.
Gold prices are volatile due to their limited supply. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (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)
External Links
finance.yahoo.com
forbes.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
bbb.org
How To
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. It was also traded internationally due to its high value. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This caused a drop in foreign currency demand which resulted in an increase of their prices. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to sell some excess gold to Europe in order to do this.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. Many European countries started to accept paper money as a substitute for gold after World War I. The gold price has gone up significantly in the years since. Even though the price of gold fluctuates, it remains one the best investments you can make.
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By: Jamie Redman
Title: Blast: The New Ethereum Layer Two Platform Making Waves in the Crypto Community
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
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