Gauging the impact on Avalanche as Stars Arena CEO steps down

October 31, 2023

By Himalay Patel

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• Activity on Stars Arena dropped as its CEO stepped down.

• Daily transactions on Avalanche declined, price movement remained positive.

The Social Fi sector has been booming over the last few months. This growth was spearheaded by friends.tech, a Social Fi platform on Coinbase’s [COIN] network Base. However, Avalanche’s [AVAX] Stars Arena soon capitalized on this momentum as well.

The fault in our “Stars”

Stars Arena, a project on the Avalanche blockchain, shared that their CEO, Chill Pill, has stepped down. This drop may be due to a recent hack on the Stars Arena protocol.

The hack took place on 7 October and led to a loss of nearly $3 million. The hack on Stars Arena could hurt people’s trust in both Stars Arena and Avalanche.

Thus, it’s important for these projects to fix the issues and show they’re taking steps to prevent this from happening again to help restore trust.

Due to these factors affecting the Avalanche ecosystem, the activity on the protocol has taken a hit. According to Artemis’ data, the number of daily active users on the protocol have plummeted.

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