You'll need at least 70 Fortbytes to complete this challenge. Once your Fortbyte count is that high, you'll be awarded the Scarlet Scythe. Without that, you'll see nothing when you smash the blue canoe.
Notice how I'm Fortbyteless in the photo. This is due to my being Scytheless. BUT, at least we know how to find it now!
Also, notice there's a countdown clock on the Sky Platform in this area. A big event is nearing. Rumor has it there will be a large monster/robot fight. Sweeet.