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Terra Under Attack: Could Website Hack Finish Off Collapsed Coin?

Published August 22, 2023 2:03 PM
Teuta Franjkovic
Published August 22, 2023 2:03 PM
Key Takeaways
  • Terra(dot)money is under scrutiny for allegedly being part of a phishing scheme
  • Terra’s developers advise using Telegram, Discord, and X (Twitter)
  • The hack further erodes faith in LUNC and its ecosystem

A hostile entity that uses the ‘terra.money’ domain as a phishing platform to gather users’ sensitive data has infiltrated  and made a hostile attack on Terra (LUNA) project’s official website.

Users are advised  to avoid interactions with the domain address since they could become the target of a scam.

The advice came on August 19 from Terra’s (LUNA) official account on X (formerly Twitter). On August 20, the account issued a second warning but provided no info on the website issue.

Immediate Warning and Investigation

Some people surmise that the problem may have been brought on by a domain takeover, as the team mentioned “secure full access to the domain.”

Maslin Edwin suggested  that the primary owners of “terra(dot)money” forgot to renew the domain’s ownership while posting a gif of monkeys taking some vehicle parts, however, this information cannot be verified.

Data from who.is  reveals that the domain’s most recent update occurred on August 20, but it was just registered in 2018 and is scheduled to expire in 2027 but there is no public record of ownership.

Terra data
Credit: Who.is

Another Terra web developer, Kiruse, claimed  the main goal of the attack was to deceive consumers into giving over their private information.

The website’s domain, terra.money, is currently under investigation for its potential connection to a phishing campaign. Users are urged to wait patiently for additional upgrades that will guarantee a secure and thorough access procedure.

Following the issue, the official Terra account is advising  followers to exclusively use X (Twitter), Discord, and Telegram as their official communication methods.

Not The First Hack

Users’ keys and fund securities are seriously at risk as a result of the hackers taking control of the official website and misleading users into disclosing their seed phrase.

This is not the first time Terra got attacked. In April this year, Terra Classic blockchain-based decentralized finance (DeFi) exchange project Terraport Finance  experienced a breach on its liquidity wallet.

Terraport then claimed the hacker had destroyed all liquidity pools on the site, resulting in the loss of digital assets valued at around $2 million.

According to reports, Terraport hackers sent stolen money to the MEXC Global and Binance exchanges, whose security teams have been urged to immediately freeze the assets by the investigators.

The DeFi business, which mostly emerged in 2021, is still plagued by infrastructure and security flaws, with fresh DeFi events occurring virtually every day.

LUNC’s Current Performance and Recovery Prospects

Terra.money website went through the attack for phishing reasons, which caused the price of Terra Luna Classic (LUNC) to decrease  to $0.00006553 in the last 24 hours.

LUNC has decreased by 54%  since the start of the year, whereas many other coins (such as BTC, ETH, and XRP) have seen significant gains since January 1. LUNC has also decreased by 15% during the past week and by 25% over the past 30 days.

In recent months, Terra Luna Classic has also struggled to make substantial advancements in network and development updates, as ongoing governance suggestions continue to arouse acrimonious disagreements among community members.

LUNC’s indications are weak right now but they aren’t quite as bad as they were a few days ago, and they also appear prepared to support the altcoin’s rebound.

After falling below 20 over the weekend, its relative strength index has recovered back up to 30, indicating a minor regaining of momentum that could result in a rebound over the coming days.

Furthermore, LUNC’s 30-day moving average has significantly deviated from its 200-day moving average, indicating significant overselling and undervaluation, likely to anticipate a potent upcoming recovery.

LUNC is an unique example because it has been consistently dropping since the start of the year, raising fears that it is in a terminal decline state (from which it would never recover).

The hacking event might deprive LUNC of the momentum it needs to bounce back from its weekend losses.

However, in the case of LUNC, it seems difficult to predict whether it will recover given lack of considerable progress made in recent months to increase its price and re-peg its related stablecoin, USTC.

Potential for Recovery Through Burning

A plan to burn 800 million USTC was accepted this week.

This burn may help to revive hope in LUNC and USTC and open the door for other burns and actions.

Significant changes, however, are most likely still a ways off, with LUNC projecting a rebound to $0.0000750 at most over the coming weeks.

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