Scam Alert: How to Avoid Trouble When Airdropping Terra’s LUNA 2.0 | Cryptocurrency

  • Terra’s LUNA hard fork is scheduled for May 28, followed by the launch and airdrop of LUNA 2.0.
  • Security firm Blockchain has identified scammers sending Wrapped LUNA 2.0 to Terra Deployer, airdrops to Vitalik Buterin and Justin Sun.
  • Terra core developers have received governance approval to burn 1.3 billion UST, or 11% of the community pool’s existing supply.

The LUNA hard fork is expected to take place on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Prior to the actual LUNA 2.0 airdrop, some scammers attempted to trick LUNA and UST holders into sending their assets instead of receiving the new tokens.

Also read: Here is the list of cryptocurrency exchanges that will support Terra’s LUNA hard fork

Terra’s LUNA scam can steal your tokens

As Terraform Labs prepares for the airdrop of the new LUNA 2.0 tokens, cybercriminals have taken advantage of the release and created fake airdrops of wrapped LUNA 2.0 tokens.

To make the scam appear legit, these tokens were airdropped to Vitalik Buterin, co-founder of Ethereum, Justin Sun, founder of Tron, and Andreesen Horowitz, a private American venture capital firm.

The purpose of the scam is to trick LUNA and UST holders into sending their assets to the criminal for the fake airdrop. PeckShieldAlert, a blockchain security and analytics company, issued an alert regarding the case on its Twitter profile.

The attacker’s goal is to trick users into believing that the LUNA 2.0 wrapped airdropping wallet is a legitimate address. Despite the recent price crash and UST detachment, receiving a large number of tokens from Terraform Labs could bring big rewards to scammers.

Fake LUNA token

Fake LUNA token

Terra’s LUNA hard fork is here

Terraform Labs has confirmed the arrival of the LUNA hard fork and the rebirth of the token, Terra 2.0. The Terra developer community has been working around the clock to coordinate the launch of the new blockchain, it is expected to go live on May 28 at 6:00 UTC.

Several cryptocurrency exchanges, validators, and developers have expanded their support for Terra’s new Genesis Chain and LUNA tokens. Prior to the genesis event, Terraform Labs will share a file with validators, while the first block of the new chain is produced simultaneously.

All components of the Terra ecosystem, Station, Finder, block explorer and Observer – the loader for decentralized applications – will have full functionality when the new network goes live. Dapps that have committed to migrating to the new Terra Channel will announce their launch shortly after the LUNA hard fork.

Everything you need to know about the Terra LUNA 2.0 airdrop

The LUNA airdrop will take place on the first block of the new Terra blockchain, on Saturday May 28 around 6 GMT. Eligible holders will receive 30% of the airdrop at genesis, and then the rest of the tokens will vest on a straight-line basis for two years, with a six-month cliff.

Acquired LUNAs will be the automatically staked tokens for Terra validators. This is done to preserve the security of the new Terra chain. Users with LUNA acquired will earn staking rewards and they can undelegate, re-delegate and claim their rewards at any time. Following the unlocking of the genesis tokens, there will be no more unlocking for 6 months, it is the 6-month cliff that ensures the security of the network. The acquired LUNA will then be distributed on each block, approximately every six seconds to the user’s wallet, after the cliff.

If a user wishes to access their acquired or staked LUNA, they must cancel their delegation at least 21 days before the first day of their cliff. If users do not take out their tokens, they can continue to earn staking rewards.

The new LUNA token can be used for the following purposes:

  • Earn rewards
  • Participate in the governance of the new Terra channel
  • Using dApps at launch
  • Trade through stock exchanges

Eligible holders will automatically receive the airdrop of new LUNA 2.0 tokens, and these will automatically be made available in users’ Terra wallets. Staked acquisition tokens will appear in Terra Station and users can verify the same by visiting the “stake” tab on the new network.

Cryptocurrency exchanges that support airdropping will share more information with users. Terraform Labs believes that the new Terra Chain will be one of the most decentralized and community-owned blockchains ever launched in the crypto ecosystem.

1.3 billion UST burnt from Terra community pool announced

Terraform Labs developers announced the burning of 1.3 billion UST, which was held in the community pool. After receiving a nod from governance via Proposition 1747, 11% of the existing supply of 11.2 billion UST will be burned.

Proposition 1747 1.3 billion UST burn

Proposition 1747 1.3 billion UST burn

The burn was proposed to reduce the bad debt stock of the Terra economy and to slowly restore the peg of the algorithmic stablecoin. Burning the UST from the community pool removes a significant chunk of supply and eases peg pressure on the stablecoin. Over a long period, this could promote the slow burn rate and the kind of downstream effects that have inflated on-chain swap spreads and influenced Terra’s economy.

The community pool tokens and the rest of the cross-chain UST on Ethereum deployed as liquidity incentives equals a total consumption of 1,388,233,195 TerraUSD.

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Scam Alert: How to Avoid Trouble When Airdropping Terra’s LUNA 2.0 | Cryptocurrency

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