On October 30, 2023, SnowTrace, a leading blockchain explorer for the Avalanche network developed by Etherscan, officially announced its closure at 07:00 AM Vietnam time on November 30, 2023.
SnowTrace has requested its users to download essential information such as private keys, name tags, and contract verifications before the explorer ceases operation. The exact reason for SnowTrace’s shutdown remains unclear, but it is likely due to financial constraints, possibly stemming from the prolonged crypto winter.
In 2023, with the emergence of various new projects like Aptos, Arbitrum, and Optimism, which have garnered significant community interest, “older coins” like AVAX have struggled to compete. To regain its position, Avalanche initiated a strategic shift by launching Stars Arena, which aimed to rival Friend.tech. Taking advantage of the FOMO surrounding Friend.tech, this SocialFi application quickly attracted users and capital, contributing to AVAX’s growth.
However, the celebration was short-lived as Stars Arena suffered an attack that drained $3 million in TVL (Total Value Locked). Following the attack, Emin Gun Sirer, the founder and CEO of Ava Labs, reassured the community, saying, “…Stars Arena only lost $3 million. I am confident that this amount can be quickly replenished.”
This statement, suggesting that $3 million is insignificant compared to the Avalanche ecosystem’s assets and capital, has raised suspicions within the community as SnowTrace prepares to shut down. Stars Arena’s TVL is currently less than $330,000, indicating that the recent attack severely impacted the fledgling project. Other projects within the AVAX ecosystem have also experienced a decline in activity.
Notably, before the attack, Stars Arena had a critical security flaw that allowed users to easily withdraw funds from smart contracts. This security vulnerability posed a threat to over $1 million worth of assets locked in the project’s smart contracts. Specifically, the flaw was related to the getPrice() function, which allowed hackers to call the contract and transfer funds to their wallets. Although the project subsequently updated and fixed this issue, it highlighted that Stars Arena’s system had not reached the necessary level of security and reliability.
Additionally, on October 29, the CEO of Stars Arena resigned without specifying the reason.
With SnowTrace’s closure, many in the community expressed regret because now, when they want to use a blockchain explorer on Avalanche, they must resort to Avascan, a platform that has received mixed reviews and is perceived as less superior to SnowTrace.
Data from SimilarWeb indicates that Avascan only recorded over 42,100 visits during the same period, not even one-sixth of SnowTrace’s performance.