SoFi or Social Finance is an up-and-coming niche in crypto. In August, we saw Friend.tech launching. This SoFi platform soon saw plenty of spin-offs. One such fork is Stars Arena on Avalanche.
This platform launched in late September. However, in early October it was already hacked twice. The latest hack saw $3 million in AVAX being siphoned away. So, let’s dive deeper into what Stars Arena is all about.
What Is Stars Arena?
Stars Arena is a social media platform. However, it gives creators the opportunity to monetize their work. It is a fork of the popular Friend.tech platform on Base. The founder is, just like the Friend.tech founders, only known by his Twitter name.
⁃Trade twitter profiles on $AVAX
Here is the full guide about Star Shares
— Cyber Nexus Media (@CyberNexusMedia) September 26, 2023
However, the platform also mixes features of X into the mix. For instance, you can make Threads. These are like posts on X and you can interact with them. Similar to Friend.tech, there are ‘shares’. However, on Friend.tech they call them ‘Keys’. In Stars Arena, they’re called ‘Tickets’. New users pay 0.0066 AVAX for Tickets. These Tickets link to a profile. The popularity of this person influences the Ticket or share price.
So, the owners of the Tickets, get a share in a part of the trading fees that their Tickets generate. If you buy Tickets, you get access to the owner of the Tickets. This can be done in various ways, for example, through direct messages. But it can also be in the form of restricted posts. Only Ticket holders can see these posts.
Like Friend.tech, Stars Arena also offers Airdrops. The more you interact on the platform, the more airdrop points you earn. For example, write or read Threads, tip, or be active. This feature has been active since September 26th. The team distributes rewards on a weekly basis. Currently, there’s no end date set for this feature. The team will measure your airdrop share by your accumulated points. They will relate your points to points collected by other users.
The platform also has a referral system. You get rewarded 1% of your referral’s trades. You can also export your Stars Arena wallet to external wallets like MetaMask.
Love to see all the new frens coming in to check out @starsarenacom 🤝
— Avalanche 🔺 (@avax) October 3, 2023
Stars Arena Rise and Immediate Downfall With a $3 Million Hack?
Stars Arena didn’t launch until September 27th, 2023. In a short time frame, it made quite an impact on the Avalanche chain. It was by far the biggest earner in the Avalanche ecosystem. The AVAX token even pumped by 6% during the first week after it launched. The platform’s growth rate was also no less than 820% during that week, as DappRadar stats show. Transactions went from 26.87k to over 248k within a week.
Some users managed to rake in rewards of around 1,000 AVAX (approx $10k). Heavy Avalanche hitters were also supporting the platform. For instance, Emin Gün Sirer, founder and CEO of Avalanche. Or how about Avery Bartlett, Avalanche’s social media manager? As a result, transaction volume also flourished. On 4th October, it managed $2.1 million with 10,000 unique active wallets.
Looks like I just got flipped on the latest SocialFi phenomenon. Check out Stars Arena, it's social without the middleman, and it's fun. https://t.co/5Wpkt4DcRi
— Emin Gün Sirer🔺 (@el33th4xor) October 3, 2023
Stars Arena Hacks
However, on 5th October, X user Lilitch.eth knocked on the door. She or he claimed that there was a $1.1 million hack going on. To say that this shocked the Stars Arena community is an understatement. However, it turned out that the attacker had only drained $2,000. Furthermore, the team resolved the issue fast. Some high-ranking Avalanche staff downplayed the event. For example, Lilitch got accused by users of spreading fud (fear, uncertainty, doubt).
@starsarenacom, you fucked up
1.1 million dollars are being drained right now because of noob devs who couldn't make a copy of https://t.co/h7traLwG9i that will work properly
If you hold ANY SHARES in StarsArena you should sell while you still can
read next⬇️ pic.twitter.com/HzgXvJc8ju
— lilitch.eth (@0xlilitch) October 5, 2023
So, we go to 7th October, only two days later. Now the platform gets drained for $3 million. That was 75% of the funds the platform held. The team moved any remaining funds to a multisig wallet. Furthermore, the platform was also under a DDoS attack (distributed denial-of-service).
The platform initially asked not to deposit any funds anymore. The website was down for a few days, for maintenance. However, now the site is up and running again. See the picture below.
Source: Stars Arena website
At the time of writing this article, the web is already active, so we believe that in these days, the development of the platform will be completely and progressively reestablished.
Social Finance or SoFi is claiming its spot in the crypto space. In a short timeframe, various platforms made headlines. Friend.tech on Base and Stars Arena on Avalanche. However, both platforms also have safety issues. The Stars Arena was down for maintenance, after a $3 million hack. However, currently, the site is up and running again.
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