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In a surprising turn of events, Stars Arena, a decentralized social finance (SocialFi) application operating on the Avalanche blockchain, has announced the resignation of its CEO, known by the pseudonym “Chill Pill.” This move comes in the wake of a significant smart contract exploit that the platform endured roughly a month ago.
The Fallout of the Exploit
Following the exploit, which led to substantial financial losses, Stars Arena’s total value locked (TVL) has plummeted from a staggering $3 million to a mere $310,468.
CEO’s Departure and Rebuilding Trust
The announcement of Chill Pill’s departure was made by Stars Arena on an undisclosed date, signaling the company’s commitment to rebuilding trust within its community. Chill Pill, the outgoing CEO, also took to Twitter to confirm his resignation, although neither he nor Stars Arena have publicly disclosed the specific reasons behind this decision.
Community’s Surprise and Speculation
The news of a CEO at Stars Arena came as a surprise to many members of the crypto community. The project had previously maintained a veil of secrecy regarding its team, leaving little to no information about the individuals behind the development. Furthermore, the pace at which the CEO’s departure unfolded has raised eyebrows, with some noting it as one of the quickest resignations in the blockchain space.
The Stars Arena Project
Stars Arena, a SocialFi platform inspired by the Ethereum-based Friend.tech, only launched in late September. The platform enables users to link their accounts to the platform using Avalanche’s native cryptocurrency, AVAX, to purchase “tickets” representing shares in content creators.
Challenges and Hacks
Upon its launch, Stars Arena garnered significant interest, resulting in a surge of transactions on the Avalanche network. However, the project was not without its share of challenges. It fell victim to multiple security breaches, the first of which cost the platform $2,000. Stars Arena’s team assured users that they had rectified the vulnerability. Nevertheless, a mere two days after the initial incident, the protocol was targeted in a second, more devastating hack, leading to a substantial loss of assets.
Recovery Efforts and Hacker Communication
As previously reported by CryptoPotato, the perpetrators of the second attack managed to drain the platform’s TVL, siphoning off nearly $3 million and leaving a meager $0.5 behind. Despite the setback, Avalanche CEO Gün Sirer expressed confidence in the social app’s ability to recover swiftly. Stars Arena later revealed that it had secured funding to compensate for the losses incurred.
The Hacker’s Surprising Offer
In an unexpected twist, the individual responsible for the second hack reached out to Stars Arena’s team and returned 90% of the stolen funds. In exchange for this restitution, the hacker received a 10% bounty and an additional 1,000 AVAX, which had been lost in a bridge.
Current TVL and Ongoing Challenges
Stars Arena’s TVL currently stands at $310,468, a substantial 90% decline from the $2.78 million held before the second exploit. The platform continues to grapple with the aftermath of the security breaches and the departure of its CEO, as it seeks to rebuild its reputation and regain the trust of its user community.
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