Stars Arena Recovers from Exploit; Critics and Competitors Still Challenge Its Dominance
Summary:
Stars Arena, the team behind a new protocol, has rectified an exploit that allowed hackers to siphon off $2,000 from its Avalanche-based decentralized social media platform. The attackers reportedly paid more in costs than they gained due to inflated gas fees on Avalanche. The exploit incited criticism from the crypto community, with some criticizing Stars Arena's handling of its platform. Nevertheless, Stars Arena joins the growing list of social finance platforms, while friend.tech continues to lead, recording over $293 million in monthly trading volume.
The team responsible for the recently devised protocol, Stars Arena, influenced by friend.tech, has dismissed the rumors and uncertainty, labeling them as "coordinated FUD." This comes in response to patching an exploit on their Avalanche-based decentralized social media platform that allowed perpetrators to make off with $2,000. An announcement was made on October 5th via their official Twitter account, confirming the fix but further stating they're essentially in a combat situation against those who wish to exploit their system. The representative warns the user base that they are the real targets, and their right to diversified platforms is under attack.
Twitter user "0xlilitch" used the platform to criticize Stars Arena, stating that their inexperienced developers failed to patch a vulnerability within the platform's pricing function. This loophole reportedly allowed attackers to trade zero user tickets in exchange for Avalance (AVAX) tokens at no real cost.
However, it has been reported that the method of attack turned out to be economically unsound. The exploit caused a substantial increase in Avalanche's gas fees, making the cost of claiming the illicit earnings higher than originally projected. Consequently, it is believed the attackers wound up paying more in gas fees than what was yielded from the exploit. Ava Labs CEO, Emin Gün Sirer, shared on Twitter that the attackers spent an average of $0.25 per each $0.04 earned, with the total amount extracted equating to just $2,000. He emphasized that since the exploit has been rectified, it was time to move on from the incident.
Despite the exploit being largely unsuccessful, members of the crypto community were quick to criticize the Stars Arena team. One member, known by the pseudonym "foobar", a founder and developer from Delegate, disparaged the platform. He accused Stars Arena of flubbing its friend.tech fork, calling them out directly and rather derisively suggesting they give up on their platform.
Stars Arena is the latest application amidst a burgeoning list of social finance platforms, which includes Alpha on the Bitcoin network, Friendzy on Solana and PostTech on Arbitrum. Despite the increase in similar DeSo applications, friend.tech continues to dominate the market, boasting over $293 million in monthly trading volume, and outperforming its nearest rival, PostTech, by over $283 million.
Published At
10/6/2023 5:44:29 AM
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