FT imitation platform Stars Arena CEO resigns: Will focus on rebuilding community trust
FT Friend.Tech's simulated trading platform, Stars Arena, released news this morning that Chill Pill has resigned from his position as CEO, stating that they will take active measures to rebuild community trust. Data shows that the protocol's TVL is plummeting, while competitor Friend.Tech remains popular.
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Stars Arena CEO Resigns
Stars Arena, the Avalanche blockchain-based social protocol that gained popularity within a week of its launch but was hacked for nearly $3 million just days later, announced today that its CEO, Chill Pill, has resigned, speculated to be in response to the previous hacking incident. Source
As of today, Chill Pill has stepped down from his role as CEO.
We will continue to take significant steps towards rebuilding trust with our community.
— Stars Arena (@starsarenacom) October 29, 2023
User Exodus Following the Incident
According to DeFiLlama data, Stars Arena's Total Value Locked (TVL) reached an impressive $2.78 million within 10 days of its launch, but plummeted rapidly after the hack incident, dropping by 81% in the past week to only $317,000.
A few days ago, Stars Arena also stated that it had established a company and planned to enter the seed funding stage, with guidance from Avalanche's fundraising platform Avalaunch.
The data above clearly indicates that whether triggered by the previous reports of user asset theft or the subsequent large-scale protocol hack, despite the team's claims of updating and fixing the vulnerability, the ongoing security threats have already raised concerns among users, leading to an exodus and highlighting potential unreliability in Stars Arena's system architecture.
While not disclosing specific details regarding the CEO's departure, Stars Arena also stated:
We will continue to focus on developing and updating the product to regain the trust of our community.
Active Users on Friend.Tech
Friend.tech, as the pioneer of this SocialFi trend, has brought new topics to the crypto market while maintaining its position as a leader in social protocols.
Dune statistics show that as of today, the total unique buyers of FT have exceeded 830,000, with a TVL of $44.21 million.
Furthermore, Friend.tech's protocol revenue has surpassed 14,000 ETH, approximately $23 million, with a total of 11.83 million transactions.
