The blockchain security firm Peckshield today warned investors about a newly deployed honeypot pretending to be “Terra Luna Classic” (LUNC) on Binance Smart Chain (BSC).
The honeypot emerged after a proposal about forking Terra's blockchain was proposed by co-founder Do Kwon. According to the proposal, Kwon seeks to create a new Terra blockchain without the stablecoin UST, and the old chain would be renamed “Terra Classic.”
The Terra Luna Classic honeypot seems to be operating out of a phishing website named v2terra.com, according to Peckshield.
The currently deployed LUNC honeypot on Binance Smart Chain has been actively traded on Pancakeswap, the most popular BSC-based exchange. According to data from Pancakeswap, the total trading volume of LUNC topped $135,000 over the past 24 hours.
A honeypot is a smart contract that pretends to leak some funds to a random user (victim) provided that the user provides additional funds. However, the funds sent by the user would be trapped in the contract, allowing only the creator to access them.
A common honeypot scam would promise to send back twice the deposited amount, so a user would be promised 2 ETH for sending 1 ETH, but the honeypot creator would just keep that 1 ETH and send back nothing.
“Do not connect your wallet! Terra 2.0 (or not) is still in Preliminary Vote,” warned Peckshield.
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The proposal to fork LUNA was voted against by 90% of LUNA holders, which means no new LUNA-related chain has been deployed. Any change to the Terra ecosystem has to be submitted as a proposal, and a majority of LUNA holders would have to vote in favor.
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