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UST drops more than 35% as post-attack snapshots are taken – Scam LUNA 2.0 tokens are flooding the market

The UST price is in free fall as the “post-attack” snapshot was taken at block 77990000. This algorithmic stablecoin will not be included in the new LUNA blockchain but will remain on Luna Classic.

Source: TradingView
Source: TradingView

Investors appear to have bought UST before the snapshot, with prices up more than 80% since May 25. However, as soon as the chain reached the required block, the stablecoin dropped more than 35% to just $0.05. The price has been sliding since hitting a peak of $0.11 on the morning of May 26.

In the midst of all the confusion with Terra, the future of the Luna Classic blockchain is still a big question mark as many projects say they will support LUNA 2.0. Due to the massive inflation of LUNA from the UST losing peg, there are trillions of tokens on the Luna Classic blockchain. Almost 10% of the UST remaining in the community pool will be burned in the coming days following a vote just passed earlier this morning as reported by CryptoWallCity. However, without core projects and with a stablecoin down 95% from its designed peg, the future is bleak for UST holders at this point.

Token LUNA 2.0 scam is rampant

Scammers using “LUNA 2.0 tokens” are starting to “airdrop” scams right before the actual airdrop is launched.

PeckShield – a data analytics and blockchain security company – has identified scammers sending “Wrapped LUNA 2.0” tokens to Ethereum addresses of celebrities. This scheme is intended to simulate the LUNA reboot airdrop taking place on Friday.

According to the alert, the popular addresses that the scammer spoofs are those of Vitalik Buterin, Andreesen Horowitz, Three Arrows Capital, and Justin Sun.

Initially, tokens were sent from an anonymous address to Terra Deployer on Thursday and then sent to the individuals involved, masquerading as Terra’s official airdrop.

However, as Do Kwon made clear in his plan to revive the Terra ecosystem, UST and LUNA holders who have left Terra are likely ineligible for the airdrop. In other words, the “airdrop” taking place on Ethereum and other chains is a scam.

Terra’s plans include forking the Terra blockchain and issuing a brand new LUNA token. The old LUNA, which went bankrupt after UST lost its US dollar peg earlier this month, will be renamed “LUNC”.