Stars Arena, a prominent on-chain social application built on the advanced Avalanche blockchain, recently fell victim to a $2.9 million hacking incident. Intruders exploited a smart contract vulnerability, leading to a financial loss for the acclaimed platform. In response to this unexpected and unfortunate event, the team behind Stars Arena has taken immediate action. They have ensured to secure the necessary funds and have announced their plans to execute a comprehensive security audit.
Details of the Stars Arena $2.9 Million Hack
The sophisticated social on-chain tool, Stars Arena, operating on the Avalanche blockchain, reported a significant security breach. There was a hack amounting to $2.9 million by manipulating a weakness in the system's smart contracts structure. This event unfolded on a Saturday, and the Stars Arena team sent out a wave of messages across X (previously known as Twitter). They informed the users to put a hold on their deposits and further assured them that a thorough check was underway to resolve the issue.
Identifying the Weak Spot
Peckshield, a company specializing in blockchain security and data analytics, during the initial review, revealed key insights into the hack. The hackers exploited a reentrancy gap in Stars Arena's shares contract, enabling them to sell assets on the platform for a price significantly higher than the set market rate. Peckshield conveyed, "The reentrancy is manipulated to modify the weight at the issuance of the share/ticket, leading to the sale of one share at an excessively high price ~274k $AVAX."
Swift Action Against Malicious Activities
Prior to this major hacking incident, Stars Arena had neutralized another threat, making clear that the platform was constantly under the spying eyes of malicious parties seeking to illicitly acquire wealth.
Aftermath and Measures
Emin Gün Sirer, Ava Labs Founder and CEO downplayed the impact of the hack by highlighting that the team’s affiliations and the platform’s popularity ensured the recovery of the lost funds. As the issue continued to unfold, Gün Sirer confidently stated, "They have quite a few well-wishing associates and a fantastic product that has proven its virality in the market. The amount of loss is only $3m. I'm optimistic that the team can plug this loophole. We should now give them some time to incorporate the required code changes."
Steps Toward Recovery and Future Prevention
After the incident, Stars Arena declared that they had secured the funds to compensate the affected users. A team of white hat developers was also hired to swiftly reinforce the security of the platform. Stars Arena, whilst promising to restore all funds and reopen soon after a thorough security audit, didn't provide a specific timeframe for when this would occur.
How do you perceive the $2.9 million reentrancy exploitation experienced by Stars Arena? Your thoughts and comments are welcomed below.
Frequently Asked Questions
What are the benefits of a Gold IRA?
You can save money on retirement by putting your money into an Individual Retirement Account. You can withdraw it at any time, but it is tax-deferred. You have complete control over how much you take out each year. And there are many different types of IRAs. Some are better suited for college students. Others are made for investors seeking higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. So if you're planning to retire early, this type of account may make sense.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. People who want to invest their money rather than spend it make gold IRA accounts a great option.
Another benefit to owning IRA gold is the ability to withdraw automatically. This eliminates the need to constantly make deposits. To avoid missing a payment, direct debits can be set up.
Gold is one of today's most safest investments. It is not tied to any country so its value tends stay steady. Even during economic turmoil the gold price tends to remain fairly stable. It is therefore a great choice for protecting your savings against inflation.
What Is a Precious Metal IRA?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are called “precious” metals because they're very hard to find and very valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. You'll get dividends each year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you only pay a small percentage on your gains. You also have unlimited access to your funds whenever and wherever you wish.
Should You Invest in gold for Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. You can invest in both options if you aren't sure which option is best for you.
In addition to being a safe investment, gold also offers potential returns. Retirement investors will find gold a worthy investment.
While many investments promise fixed returns, gold is subject to fluctuations. Therefore, its value is subject to change over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit to gold is its tangible value. Gold is less difficult to store than stocks or bonds. It can be easily transported.
You can always access your gold if it is stored in a secure place. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. Gold usually rises when the stock market falls.
Another advantage to investing in gold is the ability to sell it whenever you wish. As with stocks, your position can be liquidated whenever you require cash. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Also, don't buy too much at once. Start with a few ounces. Continue adding more as necessary.
The goal is not to become rich quick. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
Can I hold a gold ETF in a Roth IRA?
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
Also available is an Individual Retirement Annuity. An IRA allows for you to make regular income payments during your life. Contributions to IRAs will not be taxed
How Much of Your IRA Should Be Made Up Of Precious Metals
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. You can actually make money without spending a lot on gold or silver investments.
You might consider purchasing physical coins, such as bullion bars and rounds. You could also buy shares in companies that produce precious metals. Your retirement plan provider may offer an IRA rollingover program.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They are not stocks but offer long-term growth.
They also tend to appreciate over time, unlike traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
How much money should my Roth IRA be funded?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, you cannot touch your principal (the original amount deposited). This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. You must pay taxes on the difference if you want to take out more than what you initially contributed.
You cannot withhold your earnings from income taxes. Withdrawing your earnings will result in you paying taxes. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's further assume you earn $10,000 annually after contributing. This would mean that you would have to pay $3,500 in federal income tax. The remaining $6,500 is yours. Since you're limited to taking out only what you initially contributed, that's all you could take out.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types if Roth IRAs, Roth and Traditional. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. You can withdraw as much as you want from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal requirement, unlike traditional IRAs. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Legal – WSJ
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
Investing in gold or stocks
Gold investing as an investment vehicle can seem extremely risky these days. Many people believe that investing in gold is not profitable. This belief is due to the fact that many people see gold prices dropping because of the global economy. They believe they would lose their money if they invested gold. There are many benefits to investing in gold. Below are some of them.
Gold is the oldest known form of currency. There are thousands of records that show gold was used over the years. It was used by many people around the globe as a currency store. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. You must determine how much gold bullion you can afford per gram before you consider buying it. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.
It is important to remember that even though gold prices have dropped in recent times, the cost of making gold has risen. So, although gold prices have declined in recent years, the cost of producing it has not changed.
The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. It is sensible to avoid buying gold if you are only looking to cover the wedding rings. It is worth considering if you intend to use it for long-term investment. If you sell your gold for more than you paid, you can make a profit.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. We strongly recommend that you research all available options before making any decisions. Only then can you make informed decisions.
By: Sergio Goschenko
Title: Analysis of the $2.9 Million Security Breach on Stars Arena Blockchain
Sourced From: news.bitcoin.com/social-on-chain-app-stars-arena-suffers-2-9-million-hack-team-secures-funds-to-close-the-gap/
Published Date: Sun, 08 Oct 2023 20:30:36 +0000
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