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- 1 Stars Arena, a recently launched SocialFi platform, went under attack but was soon averted.
- 2 The platform called the incident an effort to create FUD among the community by monopolistic forces.
Exploits of platforms and efforts to illegally withdraw funds from there always make the headlines. Even the failed attempts also take place in mainstream conversations, as the recent alleged mishap with Stars Arena did. The Avalanche network-based emerging SocialFi platform was reportedly attacked by exploiting a loophole, which the developers fixed before the situation could escalate further.
Though the mishap was averted, it created a moat among social media users taking part either in support of Stars Arena or criticizing the naive creation by developers.
A thread post from lilitch.eth on social media platform X (previously Twitter) prompted the discussion and highlighted the attack said to take place on Stars Arena.
The user criticized the developers and said they could not “make a copy of Friend.tech” to work properly. As a result, about $1.1 Million worth of funds were on the verge of being drained out.
He cited the “getPrice() function” over the platform as “broken” and not working properly. It led the exploiters to accumulate AVAX tokens despite selling 0 shares.
Stars Arena Showed up for Damage Control
Meanwhile, the Stars Arena team showed up in the next couple of hours and asserted that the “exploit has been fixed.”
In addition, the post had a provocative and sentimental message for the community in the wake of the alleged exploit.
According to Stars Arena, the exploit was an effort to keep monopoly by attacking diversity. They call out the platforms for creating fear, uncertainty, and doubt (FUD) against them.
“We will fight, we will survive, we will win. We have the devs. We have the team. We have the people.”
They argued that the attack could not be carried out further since it was costing attackers $5 to take out $1 from the platform. Before it could cause more damage, the developers fixed the issue and managed to safeguard the funds over the platform.
Attack Made a Slight Dent on Stars Arean’s TVL
Stars Arena was said to have about $1 Million in total value locked (TVL), which dropped to $915,590 following the attack. However, it did not go down further, saving the rest of the funds.
People were in support of Stars Arena after the attack. Emperor Osmo, a well-known on-chain researcher, responded to a situation by sharing a snippet from another user who labeled the exploit as “useless” to any hacker. This assessment was based on the fact that the cost of executing the hack far exceeded the amount that could ultimately be obtained from it.
In essence, the economic impracticality of the hack made it an unattractive option for any potential attacker. This observation highlights the importance of cost-benefit analysis in the cryptocurrency space, where the economics of hacks and exploits can greatly influence their feasibility and attractiveness.
Stars Arena is a budding SociaFi protocol over the Avalanche (AVAX) network. It launched recently and started collaborating a great deal in the network’s growth in terms of users and transaction count.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
