Quick action by Stars Arena thwarts hacker's gain.
On October 5th, the team behind Stars Arena issued a statement through social media announcing that the vulnerability had been patched.
On top of that, the team has also refuted claims of "coordinated FUD" (fear, uncertainty, and doubt) aimed at undermining the project.
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However, in its statement, the company highlighted:
Don’t get this wrong, we are at war.
This issue revolved around a flaw in the platform's price function, which the attackers manipulated to technically obtain free Avalanche AVAX tokens by selling zero user "tickets."
Despite the immediate attention this incident gained, the attackers reportedly faced a setback.
Emin Gün Sirer, the CEO of Ava Labs, pointed out in a social media post that the exploit ended up costing the attackers more than they gained due to a significant rise in gas fees on the Avalanche network.
Sirer elaborated, saying that for every $0.04 the hackers made, they spent an average of $0.25 on gas fees.
The event drew severe criticism from the crypto community. "Foobar," a pseudonymous founder and developer of Delegate, accused Stars Arena of mishandling its Friend.tech fork and advised the platform to "delete your account and product, clownshow."
Stars Arena is a recent addition to the rapidly growing sector of social finance or SocialFi apps. It joins the ranks of other platforms like Alpha, which runs on the Bitcoin network, Friendzy on Solana, and PostTech on Arbitrum.
Despite the addition of these DeSo apps, Friend.tech continues to lead the market, boasting close to $293 million in monthly trading volume. However, the firm's users have recently fallen victim to a SIM-Swap attack.
The incident involving Stars Arena serves as a reminder of the security challenges that emerging decentralized platforms face. Although the exploit proved economically disadvantageous for the attackers, it has nonetheless sparked intense discussion and criticism within the crypto community. With this experience, Stars Arena joins other SocialFi platforms in the constant battle to ensure security while maintaining user trust.
