Skip to main content

Terra Classic: Mirror Protocol exploit again

 


Last week it became known that an exploit in the Mirror Protocol had occurred completely unnoticed in October 2021. The damage is estimated at 90 million US dollars and adds a special spice to the failure of Terra. The collapse of LUNA and the stablecoin UST is estimated to have burned around $60 billion.


Now someone seems to be cleaning up the scraps too, as activist "FatMan" tweeted that an additional $2 million has been withdrawn from a number of protocol pools.


The only consolation is that this only affects Terra Classic's already-failed blockchain. Just last weekend, Terra 2.0 started with a completely new blockchain, in which the new LUNA tokens were distributed via airdrop. Since then, the tokens of the old chain are listed under the ticker LUNC and those of the new chain under LUNA or LUNA2.


Mirror Protocol called SEC into action

With the Mirror Protocol it is possible to trade synthetic assets. These assets are primarily tokenized shares, the price of which is constantly updated via a so-called oracle. Therefore, the tokens ultimately perform the same price movements as the actual securities.


The advantage of this is constant access to the stock market, which no longer knows any borders and is only burdened by very low transaction fees. The US Securities and Exchange Commission saw this as a serious violation because, in their view, Do Kown and Terraform Labs were offering unregistered securities to US consumers.


As early as November 2021, it became clear that the SEC was investigating Terra . Now, together with the crash of LUNA and UST, the whole matter should become even more interesting for the US authorities.


The case affects the entire industry

Since the catastrophic crash, many experts and market observers have been wondering why Do Kwon has so far simply been able to continue to do as he pleases. In fact, public perception is characterized by outrage at his personal behavior and the sometimes arrogant statements he made via Twitter in the weeks before the crash.


The legal assessment, on the other hand, is much more complex because Terra is definitely a piece of experimental software. It remains to be seen whether such a disclaimer will ultimately be sufficient to avert all claims from aggrieved investors.


In any case, the crypto industry is in the same boat as Terra. It can no longer help but also support Terra 2.0, because otherwise the entire sector would be considered a failure. This also explains why a number of exchanges participated in the release of LUNA2. If the tokenized bailout had not been triggered by airdrop, then there would probably have been no compensation, which would have been tantamount to a declaration of bankruptcy.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
Clash Of Streamers - Earn Crypto while Playing all for Free! - Play smart! 
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

BlackRock launches crypto ETF, certifies massive growth potential for crypto market

  Influential asset manager BlackRock has launched a blockchain index fund (ETF) that offers investors a way to invest in the crypto industry without having to invest directly in related cryptocurrencies. Accordingly, the world's largest asset manager, which currently has assets worth almost 10 trillion. US dollars managed, the so-called Blockchain and Tech ETF (IBLC) was launched this week. The $4.7 million ETF does not invest directly in cryptocurrencies or crypto investment products, but instead tracks various companies within the crypto industry. The ETF is made up of 41 different securities, of which the American crypto exchange Coinbase accounts for the largest share at 11.45%. They are followed by the Bitcoin ( BTC ) mining companies Marathon Digital Holdings (11.19%) and Riot Blockchain (10.41%). To still leave room for future investments in the crypto market, the ETF has a 9.15% cash component in US dollars. In addition to the launch of the new ETF, BlackRock has also publ...
Post a Comment
Read more

Not a bear market: According to the analyst, the current BTC decline is the same as in previous Bitcoin cycles

  According to one analyst, Bitcoin is behaving the same overall this year as it has in previous cycles. Bitcoin ( BTC ) will have “at least one more boost higher” before hitting all-time highs this halving cycle, analysts are currently saying. The well-known analyst TechDev has spoken on Twitter about the current state of BTC and said that contrary to many opinions, nothing unusual has happened in BTC/USD in 2022. Bitcoin in 2021: Nothing to see here Sentiment has also taken a hit, falling 40 percent from November's all-time high of $69,000. There is still “extreme fear” in the bitcoin and altcoin market. TechDev, known for his bullish views on Bitcoin, sees no reason to worry. He analyzed the new wallet addresses in relation to course behavior and shows here that the scenario from last year was by no means an isolated case. Back then, the number of new addresses made lower highs while the price made higher highs. "In 4 of the 6 corrections, there was divergence with price ma...
Post a Comment
Read more

The 5 largest platforms for non-fungible token (NFT) collectibles

  Since the beginning of 2021, non-fungible tokens (NFT) have had no holding back and the sector is setting new records almost every day.  More and more artists, stars and brands are realizing the potential - NFT are well on their way to catapulting the crypto space into the mainstream.  But which collectibles are currently the most popular? What are NFT? NFT are unique tokens that cannot be exchanged one-for-one for an equivalent token.  Any asset that is tokenizable can be an NFT.  This includes, for example, (digital) works of art, trading cards, game items and crypto domains.  Theoretically, however, real estate or securities can also be mapped as NFT. NFTs can be used to transparently map ownership structures on a public blockchain.  This allows them to store value just like real objects, even if additional copies are easy to make.  For example, the original picture of the Mona Lisa is significantly more valuable than a photo, as everyone kno...
11 comments
Read more