Stars Arena Surges With 18K Active Wallets After Security Incident

Stars Arena, a decentralized social finance (SoFi) platform launched on the Avalanche blockchain on September 27, 2023, by developer theBuilder, has quickly gained traction in the crypto space. The platform is a fork of friend.tech, offering users the ability to tokenize social influence through shares known as Tickets. Similar to friend.tech, Stars Arena allows users to buy, sell, and trade these shares, which represent a stake in a user’s social presence. These Tickets are transacted in AVAX, with new users starting at a share price of 0.0066 AVAX [1].

The platform’s growth has been notable, with over 18,000 unique active wallets reported at the time of writing. Around 10,000 of these wallets were created between October 3 and 4, indicating a surge in user interest. Stars Arena also recorded approximately $5 million in cumulative trading volume and a high of 250,000 daily transactions [1]. However, the platform faced a major security breach on October 6, which led to the loss of roughly $3 million in AVAX tokens due to a vulnerability in its smart contract. In response, the team announced a recovery of approximately 90% of the lost funds and has since moved assets to a new Gnosis Safe multisig wallet. Additionally, they are collaborating with blockchain security firm Paladin Blockchain Security to overhaul their security infrastructure [1].

Stars Arena distinguishes itself from friend.tech in several ways. It operates on the Avalanche network rather than Base (a Layer 2 solution on Ethereum), and offers broader access since it does not require referral codes or minimum deposits to participate. The airdrop program, similar to friend.tech, rewards users for various activities such as creating posts, tipping, and referring new users. Airdrop points are distributed weekly, and the platform has not announced an end to the program [1].

One of the core features of Stars Arena is its tipping system, which allows users to reward content creators directly using AVAX. The platform also enables direct messaging and access to exclusive content for Ticket holders, fostering a closer interaction between creators and their audience. These features are designed to incentivize user participation and build a sustainable ecosystem around social influence.

Despite its rapid growth and innovative features, the security incident has raised concerns among users and investors. The team has advised users not to deposit funds until the security measures are fully implemented and verified. This incident underscores the risks associated with emerging decentralized platforms, particularly in the fast-evolving SoFi space [1].

Stars Arena is positioned as a challenger to friend.tech in the SoFi market, and the broader trend suggests that social finance is reshaping how online creators monetize their influence. However, the platform, like others in the space, faces challenges related to data privacy, fund security, and regulatory clarity. As the market continues to evolve, the success of Stars Arena will depend on its ability to address these challenges and maintain user trust.

Source: [1] https://www.coingecko.com/learn/stars-arena-avalanche-socialfi-crypto