Terra Relaunch Is Already Inspiring A Slew Of Scam Tokens

The recent Terra relaunch appears to have inspired several similarly named scam tokens and fake accounts attempting to fool investors.

Leading blockchain security firm PeckShield on Monday said scammers running LUNA rug pull have laundered nearly 730 BNB tokens through Tornado Cash. Scams and frauds rose significantly amid the Terra 2.0 and LUNA v2 launch by Terraform Labs.

In fact, Terraform Labs’ plans to revive the Terra chain and airdrop LUNA tokens have encountered problems and delays, which also included these scams and frauds. PeckShieldAlert uncovered several fake Terra accounts on Twitter, scam addresses, and deceptive announcements related to UST and LUNA.

PeckShield Uncovers LUNA Rug Pull Amid Airdrops

PeckShield in a tweet on May 30 reported a LUNA v2 rug pull that caused scammers to transfer nearly 730 BNB worth more than $230k through Tornado Cash. The scammers created fake Terra 2.0 and LUNAv2 tokens making people believe it as tokens currently airdropped by Terraform Labs.

“PeckShield has detected LUNAv2 rugged. https://bscscan.com/address/0xd96984f2096bba89ec8351e35b0ae4d69a6c78b3… Scammers already laundered ~730 BNB via @TornadoCash. The deployer created dozens of fake Terra2.0 and LUNAv2 $LUNA tokens. https://bscscan.com/txs?a=0xd306078fb17d34545ffa69af6514cdcd8ce7cc45&f=5… DO *NOT* fall prey to them!”

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Moreover, PeckShieldAlert also revealed the wallet address of scammers and fake Terra 2.0 and LUNA v2 contract creations.

Previously, several honeypots were revealed, either claiming to provide other cryptocurrencies in exchange for LUNA tokens or announcing airdropped LUNA tokens. Scammers also duped people by announcing a fake burn address. The rise in scams and fake announcements resulted in people losing trust in Terra and Do Kwon.

Terra 2.0 Fails to Make Impact

Top exchanges supported Terra 2.0 migration and LUNA airdrop on May 28. However, the LUNA price fell from a high of $19.54 to a low of $3.63 on the same day. At the time of writing, the price is trading at $6.12, down nearly 70% from its all-time high. Meanwhile, the Terra Classic (LUNC) price has jumped more than 90% in the last 24 hours, with the current price trading at $0.0001529. The fate of Terra still remains under uncertainty.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

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