Cyber attacks have become so normalized in the cryptocurrency markets over the years that investors are no longer surprised by them. We reported the hack of the Stars Arena protocol as breaking news this morning. Following this incident, the price of AVAX Coin rapidly dropped and the stock prices on the platform started to fluctuate. So, is the situation as bad as it seems?
Firstly, the hacked balance of $3 million is nothing but a portion of the platform’s own 10-day revenue. In other words, customer assets were not hacked. Additionally, you don’t need to start a wallet on the platform because an automatic internal Web3 wallet is created when you open an account. Moreover, similar hack incidents have been observed in smart contracts on various platforms ranging from Ethereum to Solana.
Throughout the day, numerous rumors, from the claims that the Avalanche network was hacked to the Stars Arena team pulling a rug, have flooded social media, perhaps due to the fact that the project is led by a Turkish individual.
In an announcement made by the Stars Arena team a few minutes ago, the following was stated:
“We have secured the necessary resources to fix the vulnerability resulting from the exploit. In addition, a private white hat team is coming to quickly review the platform’s security. After a complete security audit, we will reopen the contract with all funds. This will happen very soon. We’re not going anywhere. The Arena Keeps Walking.”
It is difficult to understand why accounts that criticized the project today and launched attacks on the broader Avalanche network did so at the level of an attack. Emin Gün Sirer, the founder of Avalanche, said the following today regarding the matter:
“When you read the comments, you might think it was a $30 billion attack. Stars Arena is a profitable service. The $3 million lost is an amount that SA can recover in approximately 10 days. At worst, the team can borrow $3 million and repay it with interest.”
Remember, Wormhole was hacked for $300 million and is still around. Axie Infinity lost $625 million and is still in the market. SA will definitely be here. I can see the haters out there as proof of SA’s success.”
If the Stars Arena team successfully completes the code audit and resolves the issues in the system, interest in the platform may increase again, and the price of AVAX Coin could recover.