a16z-Backed Stelo Labs Ceases Operations Today, October 31, 2023

blockchain.news:

Today marks the cessation of operations for Stelo Labs, in accordance with their earlier announcement on October 17, 2023. The termination affects all Stelo products, including the widely recognized Stelo Chrome extension, which will no longer simulate transactions henceforth. This step has been undertaken to avert the risk of potential phishing attacks on users. The firm had recommended users to transition 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 spearheaded by Andreessen Horowitz (a16z). Co-founded by Ben Scharfstein and Aman Dhesi, with backgrounds in product management at notable companies like Google, Facebook, and Square, Stelo aims to enhance safety and comprehension in the web3 realm, particularly for Ethereum-based users. They launched the Stelo extension in September, acting as a protective firewall against scams and phishing attacks during transactions, addressing the growing security challenges in the web3 interface and data security, while shifting some responsibility away from the user.

Founded with a mission to simplify the technical and design hurdles around crypto security and usability, Stelo had initially honed in on making transactions both secure and user-friendly. Their journey saw notable achievements including:

* Over 10,000 downloads of the Stelo extension.

* A user base of 1,500 daily active users and 7,000 monthly active users, notwithstanding a cessation in development and marketing over the last six months.

* Protection cover for wallets holding assets over $200 million in value.

* Successful thwarting of hundreds of scam attempts, thereby averting