• ArenaDAO’s governance token, Arena (ARENA), experienced a 90% surge in the past 24 hours.
• Paradigm has proposed to purchase 150 million tokens or 15% of the total supply for $6 million USDC.
• Code4rena is an audit platform that organizes security contests and pays out guaranteed prizes.
Arena Token Surges 90% Amid Paradigm’s Investment Proposal
ArenaDAO’s governance token, arena (ARENA), experienced a significant surge in value, jumping 90% in the past 24 hours. This follows the opening of ArenaDAO’s vote to authorize Paradigm, a crypto native investment firm, to purchase 150 million tokens or 15% of the total supply for $6 million USDC. As of March 17, the fully diluted valuation of ARENA sits at $101.6 million, but at Paradigm’s purchase price, the token had a fully diluted valuation of $40 million. The token’s 24-hour volume is currently at roughly $100,100.
Working Capital for DAO
The proposed sale of $6 million to Paradigm will be used as working capital for the DAO to grow Code4rena. This audit platform organizes security contests for smart contracts and offers guaranteed payouts for audit contests. The vote will end on March 23 and thirteen addresses have voted unanimously so far to allow the DAO to sell its tokens to Paradigm. According to data from blockchain analytics company Nansen, the number of unique addresses holding ARENA has increased by 10% since Monday.
Paradigm’s Involvement with Code4rena
Paradigm’s hands-on approach to blockchain safety is highlighted through its involvement with Code4rena and its web3-focused security competition, Paradigm CTF. Last week, reports indicated that Paradigm had potentially over $5 billion funds held in custody by collapsed Silicon Valley Bank (SVB).
Increased Security Measures
In 2022, $3.8 billion was stolen from DeFi protocols in hacks which highlights how important it is improve security measures in order to protect users funds from hackers or malicious attackers .Code4rena’s leaderboard shows that 46 users earned more than $40K last year uncovering vulnerabilities which demonstrates why having an effective security audit system is essential within smart contracts projects