Can ALEX Lab be reborn?

2024 年 5 月 30 日 | English Blog

My old students who know my investment habits understand that if I have made a wrong judgment and mistakenly invested in an asset, I will never hesitate to admit my mistake and quickly cut my losses, without any attachment.

A recent example is Joby. I saw its competitors increasing while it seemed to have made little progress and its market dominance was diminishing. In the end, I decided to sell all my holdings in Joby.

Now, let’s talk about ALEX Lab. Should I invest in it?

First, let’s discuss what happened with ALEX Lab. A hacker successfully gained control over the administrator privileges of a vault associated with ALEX’s liquidity pool. This affected all the assets in the vault, primarily including approximately 13.7 million STX tokens. About 3 million tokens have already been sent to various centralized exchanges, and this number is still increasing, while the remaining balance is held in a few wallets.

Fortunately, the smart contract code and infrastructure of ALEX were not compromised. There was only a security breach. While this incident is certainly significant, it is not unusual for both centralized and decentralized platforms to experience such situations. I don’t believe it has reached a point where “one mistake ruins everything.” Strengthening security measures in the future should not be difficult to achieve.

The issue here is that the lock on the door is broken, not a structural problem like water leakage inside the house. I believe this “housing unit” can be salvaged.

Of course, regaining confidence will depend on how ALEX Lab handles the situation. At the time of writing this text, the team has already recovered most of the “bridged” coins from the pool. (Note: ALEX bridges major cryptocurrencies from other chains, such as ETH and USDT, and users can obtain ALEX versions of these tokens, such as aBTC and sUSDT. The original assets are stored in a multi-signature wallet.)

ALEX Lab is aware of the hacker’s wallet address and is closely monitoring it. They have also notified all centralized exchanges to freeze related accounts. Fortunately, STX is not easily manipulated, making it difficult for the hacker to tamper with it. Additionally, Bitcoin Stacks has not been upgraded, which has inadvertently helped ALEX Lab in tracing the funds related to the hack.

I believe the most important arrangement is that the ALEX Lab Foundation will use the ALEX reserve held by them to support the community affected by this attack. After all, the price of ALEX token has increased fivefold within six months, and the major backers behind ALEX Lab will not easily abandon the project. The only way to support this token is by injecting funds.

In my opinion, it’s not a good time to enter the market. However, for those who already have holdings, it might be worth waiting for another quarter.

If the price rises above 0.2 within the next quarter, I believe there is a good chance of a revival.