Stars Arena, the Avalanche-based social finance platform, has recently encountered turmoil as team members resign and criticism floods the comments sections. One team member, KookCapitalLLC, announced their departure in a tweet, stating, “as of today, KookCapitalLLC has been relieved of his duties as a Stars Arena team member.” Kook also shared their concerns about management and direction, leading to their decision to resign.
This news has left commenters perplexed and critical, with many seeking clarification on the current situation. Speculation about a potential rug pull has also arisen, further fueling the controversy. In particular, member Chill Pill has been at the center of several accusations, including those made by Kook.
“We will continue to take significant steps towards rebuilding trust with our community,” said Stars Arena regarding Chill Pill stepping down as CEO on October 29.
Stars Arena previously admitted to failing in meeting development expectations and subsequently transitioned into a legal entity to facilitate the expansion of their in-house tech team. TheBuilder (hannesxda), who goes by the name ‘theBuilder,’ has been fully reintegrated into the tech operations.
However, this decision was met with criticism, as some users claimed that the update was executed without prior communication. TheBuilder himself addressed the recent events in a comprehensive statement, acknowledging the need for improvement.
“We have learned valuable lessons from these setbacks and are committed to enhancing our operations moving forward,” emphasized theBuilder in his statement on October 31.
Additionally, Stars Arena announced a partnership with Avalaunch, a protocol for the Avalanche ecosystem, to assist with their funding round. However, Avalaunch later clarified that the partnership was only informal and has since ended.
The controversy stems from an exploit on October 7, where approximately $2.9 million worth of AVAX was stolen from Stars Arena. While 90% of user assets were successfully recovered, the hacker was given a 10% bounty. The platform was relaunched on October 15, aiming to rebuild trust and improve security measures.
