News
Stelo Labs, backed by a16z, ceases operations today, October 31, 2023
Today marks the cessation of Stelo Labs’ activities, in accordance with what was previously established announcement on October 17, 2023. The resolution will affect all Stelo products, including the widely recognized Stelo Chrome extension, which will no longer simulate transactions from now on. This step was taken to avoid the risk of potential phishing attacks against users. The company had advised users to switch to alternative secure platforms such as Pocket Universe, Fire or Wallet Guard.
On February 17, 2023, Stelo Labs, specializing in web3 security, secured $6 million in a seed round led by Andreessen Horowitz (a16z). Co-founded by Ben Scharfstein and Aman Dhesi, with product management experiences at major companies like Google, Facebook, and Square, Stelo aims to improve security and understanding in the web3 realm, especially for Ethereum-based users. In September they launched the Stelo extension, which serves as a protective firewall against scams and phishing attacks during transactions, addressing growing security challenges in web3 interface and data security, while shifting some responsibility away from the user.
Founded with the mission of simplifying the technical and design hurdles surrounding the security and usability of cryptocurrencies, Stelo initially focused on making transactions secure and easy to use. Their journey saw notable results, including:
* Over 10,000 downloads of the Stelo extension.
* A user base of 1,500 daily active users and 7,000 monthly active users, despite ceasing development and marketing activities for the past six months.
* Protective coverage for portfolios holding assets worth more than $200 million.
* Successfully thwarted hundreds of scam attempts, thus avoiding potential financial losses for users.
Their broader vision included creating a developer API to facilitate wallet integration with their transaction risk engine and developing a universal interface for seamless interaction with any smart contract.
Stelo’s journey has exposed several initial erroneous assumptions, particularly regarding the expected effect of the data network related to transaction security, the universal adoption of autonomous wallets by cryptocurrency users, and the adoption of short-term mass of cryptocurrencies. These insights highlighted the importance of aligning with real market dynamics and questioning inherent assumptions.
With a return to the drawing board, Stelo Labs is absorbing the lessons of this phase. They emphasize the importance of defining the market, validating hypotheses, and a strong focus on solving key user problems. Although the current chapter ends today, Stelo Labs has expressed intent to unveil its next venture soon, guided by the insights it has gained thus far.
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