LUNC’s fate turns bleak as new attack drains liquidity from Terraport Finance

ambcrypto.com:

The Terra Classic [LUNC] community suffered yet another another blow to their recovery plans from last year’s black swan. Recent reports reveal that the network, as of 10 April, was nursing a very recent attack on its Terraport liquidity wallet.

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Terraport Finance confirmed the attack on its liquidity wallet. An update from the Twitter account Terraport Finance also revealed that the attacker drained the funds in the DeFi platform’s liquidity wallets. Thus, leading to significant losses.

Terraport did not disclose the actual sum of the LUNC that was lost. However, rumors suggested that roughly $4 million worth of LUNC was lost.

Sadly during the last few hours a hacker drained liquidity pools from Terraport. We are currently working with community members and major exchanges to secure as many of these funds as possible and blacklist wallets. All funds have been tracked. Thank you for your…

— Terraport Finance (@_Terraport_) April 10, 2023

The Terraport liquidity wallet attack comes as the latest blow to Terra Classic’s recovery attempts after the rough events of June 2022.

Not only does this mean that thousands of users are down on their luck, but this new attack may place a huge dent on investor confidence. However, contrary to the ongoing situation, LUNC’s weighted sentiment demonstrated some growth in bullish expectations.

Source: Santiment

So far the weighted sentiment didn’t indicate any major reaction, likely due to the timing of the incident. A more pronounced impact will likely be evident in the next few hours.

LUNC has been struggling to exit its lower range for quite some time. It bottomed out at