Stelo Labs Ceases Operations to Protect Users from Phishing Attacks
As of today, Stelo Labs has officially ended its operations, as announced on October 17, 2023. This decision affects all Stelo products, including the popular Stelo Chrome extension, which will no longer simulate transactions. The purpose of this step is to prevent potential phishing attacks on users. To ensure their safety, Stelo has recommended that users transition to alternative secure platforms such as Pocket Universe, Fire, or Wallet Guard.
Stelo Labs’ Mission and Achievements
Stelo Labs, specializing in web3 security, raised $6 million in a seed round led by Andreessen Horowitz (a16z) on February 17, 2023. Co-founded by Ben Scharfstein and Aman Dhesi, who have experience in product management at Google, Facebook, and Square, Stelo aims to enhance safety and comprehension for Ethereum-based users in the web3 realm. Their Stelo extension acted as a protective firewall against scams and phishing attacks during transactions.
Stelo achieved several milestones during its journey:
- Over 10,000 downloads of the Stelo extension
- A user base of 1,500 daily active users and 7,000 monthly active users
- Protection cover for wallets holding assets over $200 million in value
- Successful prevention of hundreds of scam attempts
The Lessons Learned and Future Plans
Despite their accomplishments, Stelo Labs discovered some initial misassumptions regarding transaction safety data network effects and the universal adoption of standalone wallets by crypto users. They also realized that mass adoption of crypto would not happen in the near term. These insights have highlighted the importance of aligning with real-market dynamics and questioning assumptions.
Stelo Labs is now taking these lessons to heart and returning to the drawing board. They emphasize the significance of defining the market, validating assumptions, and focusing on solving core user problems. Although this chapter has concluded, Stelo Labs plans to unveil their next venture soon, incorporating the knowledge gained from their previous experience.
Hot Take: Stelo Labs Pivots After Ceasing Operations
Stelo Labs’ decision to end its operations demonstrates their commitment to protecting users from potential phishing attacks. While this may be the end of one chapter, it is also an opportunity for Stelo Labs to learn from their journey and embark on a new venture. By focusing on market definition and addressing core user problems, they are positioning themselves for future success in the web3 security space.
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