Tactical Trade Update
Following our recommendation on Thursday afternoon for a short-term tactical trade on AVAX, the asset experienced a promising rally to nearly $12, marking a robust 30% rebound from its recent lows. However, in the overnight hours, a critical development emerged: Stars Arena, the SocialFi app that catalyzed recent AVAX activity, appears to have been compromised. The price of AVAX has since returned to just above our initial entry point. It’s crucial to clarify that the vulnerability lies within the app itself, not the Avalanche blockchain, so your funds remain secure. Despite the vulnerability being patched and some remaining upside potential, the risk/reward calculation for AVAX has fundamentally shifted. In light of these overnight developments, we believe the most prudent and proactive course of action is to exit this trade at this time.
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