Honeypot – a potential scam warned by Peckshield has been going on in Terra for the past 2 days

Peckshield has repeatedly warned about a newly deployed honeypot pretending to be “Terra Luna Classic” (LUNC) on Binance Smart Chain (BSC).

Cryptocurrency Scam “Honeypot” Discovered on Binance Smart Chain

For 2 days now, blockchain security company Peckshield has repeatedly warned investors about a newly deployed honeypot pretending to be “Terra Luna Classic” (LUNC) on Binance Smart Chain (BSC).

Specifically, the honeypot was discovered after founder Do Kwon made a proposal to split Terra’s Blockchain, which is to create a new Blockchain without the UST stablecoin, and the old chain would be renamed Terra Classic

LUNC is currently deployed on Binance Smart Chain and actively traded on Pancakeswap, the most popular BSC-based exchange. According to data from Pancakeswap, LUNC’s total trading volume topped $135,000 in the last 24 hours. The latest expose by PeckShieldAlert reveals that there’s a scam going on. Apparently, someone is claiming to hold competitions for Terra Luna and UST holders. The fake Terra Luna Classic Twitter account is trying to lure unsuspecting victims by claiming to sell the new Luna 2.0 or LUNC on PancakeSwap, promising free BUSD for buyers. The scammer appears to be using BSC (Binance Smart Chain) for their scam operations.

Why Honeypot is a Scam

Honeypots is a term for this type of smart contract. There seems to be a design issue that allows users to arbitrarily withdraw Ether (Ethereum’s native currency) from the contract if the user pre-deposits a specific amount of Ether into the contract.

So don’t connect your wallet, because LUNA’s hard fork proposal was voted against by 90% of LUNA holders. This also means that no new LUNA chains will be implemented.

While exposing the scam on Twitter, PeckShieldAlert tagged the Luna Foundation Guard (LFG) and Terra Money (UST’s Twitter handle). The community would expect the two Terra teams to find a way to stop the scam. Also, this scamming attempt, while undesirable, may pave the way for Terra to finally clear the air on whether or not LUNA will be forked.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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