The CEO of Avalanche-based Web3 social platform Stars Arena announces his resignation
After suffering two exploits days after its launch, Stars Arena CEO steps down from his position.
Almost a month after the decentralized social finance (SocialFi) application suffered a major smart contract exploit, the platform’s CEO Chill Pill resigned from his position at Stars Arena. Currently, the protocol’s total value locked (TVL) is a little over $300,000, a significant decrease from nearly $3 million before the hack.
Unknown Stars Arena CEO Leaves Position
On X, Stars Arena announced the resignation of its CEO, noting that the team was trying to reestablish community confidence. Chill Pill also tweeted his resignation, with neither Stars Arena nor Chill Pill providing an explanation. Following the announcement, most members of the crypto community on X were astonished that Stars Arena had a CEO because the social app has been tight-lipped regarding the staff behind the project, while others commented that the departure was one of the fastest in the field.
The SocialFi software, which debuted in late September, is a knockoff of the Ethereum-based Friend.tech. Stars Arena allows users to link their X accounts to the platform while purchasing shares known as “tickets” from authors using Avalanche’s native coin AVAX. Following the launch of Stars Arena, there was an increase in transactions on the Avalanche network. However, the protocol has been hacked twice.
New TVL Nearly 90% Lower Post Hack
Stars Arena’s first exploit cost the platform $2000, with the team promising users that the vulnerability had been addressed. However, two days after the first occurrence, the protocol was hacked again, resulting in a larger heist.
The attackers depleted the project’s TVL by roughly $3 million, leaving only $0.5. At the time of the second attack, Avalanche CEO Gün Sirer looked hopeful that the social app would recover swiftly. Stars Arena later claimed that it had received cash to compensate for its losses. According to another update, the perpetrator of the hack contacted the team and restored 90% of the stolen funds in exchange for a 10% bounty and an additional 1,000 AVAX lost in a bridge. According to DefiLlama, Stars Arena’s TVL is $310,468 at the time of writing, down nearly 90% from $2.78 million prior to the second exploit.
Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex Exchange.