Stars Arena, a social finance platform built on the Avalanche Blockchain, has surprisingly fallen victim to a devastating exploit. The hack resulted in a loss of approximately $2.9 million. This breach sent shockwaves through the cryptocurrency community. It led to a slight decline in the price of AVAX, the native token of the Avalanche network. Here are the details…
Hacking alarm in Stars Arena
The alarm was first raised on Twitter by @0xLawliette, who noticed irregular activity in the Stars Arena smart contract. The contract was running out quickly, but no outgoing transactions were being recorded. This unusual behavior led to suspicions of abuse or rug pull. PeckShieldAlert (@PeckShieldAlert), a well-known cryptocurrency security monitoring account, was quick to take notice. He confirmed the attack, estimating losses at approximately $2.9 million. The breach left the Stars Arena community in turmoil and raised concerns about the security of smart contracts in the DeFi space.
#PeckShieldAlert @starsarenacom has been hacked for ~$2.9M pic.twitter.com/VSw8k3AVEq
— PeckShieldAlert (@PeckShieldAlert) October 7, 2023
Stars Arena (@starsarenacom) quickly acknowledged the security breach and issued a warning to its users. They urged users not to deposit any money into the platform while they work diligently to resolve the issue. This rapid response demonstrates the team’s commitment to reducing the damage caused by the exploit and protecting the user base.
— PeckShieldAlert (@PeckShieldAlert) October 7, 2023
Avalanche (AVAX) price dropped
Following the Stars Arena hack, the price of AVAX dropped sharply. Market data on October 7 shows AVAX falling more than 5 percent in the short term. Because it showed that the current price of AVAX is $ 10.92. The 24-hour increase decreased to 4.30 percent. In the graph below, the loss of momentum experienced after the hack was heard is clearly visible. It is suspected that the Stars Arena theft and the resulting uncertainty in the Avalanche ecosystem played a significant role in this price drop. Launched on September 27, 2023 by a developer known as (X) ‘theBuilder’ on Twitter, Stars Arena is a social finance platform running on the Avalanche Blockchain. It bears similarities to friend.tech, which allows users to purchase shares of Twitter (X) personas.
However, Stars Arena sets itself apart with additional features such as tipping and general discussion threads. A notable aspect of Stars Arena is that it does not require users to make deposits or use referral codes to access the platform. Transactions on the platform are carried out with AVAX. In conclusion, the Stars Arena breach is a stark reminder of the vulnerabilities in the DeFi industry and the importance of robust security measures. The Stars Arena team is working to rectify the situation and regain the trust of its users. The broader cryptocurrency community is watching closely, knowing that the fallout from such events could have far-reaching consequences in the ever-evolving crypto landscape.
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