The Blast ecosystem, a promising Ethereum layer-2 project, witnessed its first significant scam when the gambling and exchange platform RiskOnBlast conducted a rug pull, absconding with over 420 ether, equivalent to $1.3 million. The anonymous team behind RiskOnBlast transferred substantial sums to various services, including nearly $500,000 to ChangeNow, $360,000 to MEXC, and $187,000 to Bybit, after securing more than $1 million from investors in a seed funding round.

RiskOnBlast, which had engaged in Blast’s Big Bang competition with the potential to secure further funding, vanished over the weekend, erasing its social media presence. The scam affected over 750 wallets, according to on-chain researcher @somaxbt. Despite Blast's previous endorsement of RiskOnBlast's potential on their official X account, the platform distanced itself from the actions of projects within its blockchain.

This incident has sparked criticism over the lack of due diligence and the quick support for unverified projects within the cryptocurrency community, highlighting the risks associated with the current bullish market atmosphere.

Blast recently announced the selection of 47 projects from 3,000 applicants as winners of its developer competition, promising them funding to develop the Blast ecosystem further. This development comes amid calls for more stringent vetting processes to prevent future scams and protect investors.