ArenaDAO’s governance token, arena (ARENA), experienced a significant increase in value, jumping 90% in the last 24 hours. This follows the opening of ArenaDAO’s vote to authorize Paradigm, a native cryptocurrency investment firm, to purchase 150 million tokens or 15% of the total supply for $6 million USDC.
As of March 17, ARENA’s fully diluted valuation stands at $101.6 million, but at Paradigm’s purchase price, the token had a fully diluted valuation of $40 million. The 24-hour volume of the token is currently at approximately $100,100.
He proposed sale $6 million for Paradigm will be used as working capital for DAO to grow Code4rena. This audit platform hosts security contests for smart contracts and offers guaranteed payouts for audit contests. Voting will end on March 23.
The author of the governance proposal expressed excitement about having Paradigm’s expertise to help Code4rena achieve their shared mission of making the web3 ecosystem more secure. In 2022, $3.8 billion was stolen from DeFi protocols in hacks, highlighting the importance of improving security measures.
In the last 24 hours, a Code4rena token lock contract sent 55 million tokens to five addresses, two of which participated in the ongoing vote. Code4rena’s leaderboard shows that 46 users earned over $40,000 for discovering vulnerabilities last year.
Since the ArenaDAO chain voting period, thirteen directions they have voted unanimously to allow the DAO to sell their tokens to Paradigm. According to data from blockchain analytics firm Nansen, the number of unique addresses holding ARENA has increased by 10% since Monday.
Paradigm’s hands-on approach to blockchain security is highlighted through its participation in Code4rena and its web3-focused security competition, Paradigm CTF.
Last week, reports indicated that Paradigm, Pantera Capital, and Andreessen Horowitz (a16z), three crypto venture capital firms, potentially had more than $5 billion in funds in custody of the collapsed Silicon Valley Bank (SVB).
