The Impact of Terra Blockchain Suspension on ASTRO Token
The sudden suspension of the Terra blockchain at block height 11430400 due to a suspected vulnerability caused a significant impact on Astroport’s ASTRO token. All user transactions came to a halt as the Terra team collaborated with the Phoenix-1 validator to deploy an emergency patch to address the vulnerability.
Massive Theft of ASTRO Tokens
Cyvers Alerts reported that the vulnerability led to the theft of approximately 60 million Astroport (ASTRO) tokens, along with 3.5 million Circle USD (USDC), 500,000 Tether (USDT), and 2.7 Bitcoin (BTC). This large-scale theft had a severe effect on the market performance of ASTRO tokens, causing a significant drop in value.
Before the vulnerability was made public, the 60 million ASTRO tokens stolen were valued at around $2.7 million. However, the price of the coin plummeted from $0.045 to $0.01313, marking a decline of more than 60%. Despite a partial recovery to $0.02058, the token is currently trading at approximately $0.018, experiencing an all-time low in losses despite representing only 5.5% of the total ASTRO supply.
The Financial Woes of Terraform Labs
Aside from the blockchain suspension, Terraform Labs’ recent financial difficulties have further complicated the situation for Terra. The company reached a settlement agreement with the U.S. Securities and Exchange Commission (SEC) amounting to approximately US$4.47 billion. This settlement includes forfeiture penalties, civil penalties, and prejudgment interest, with former CEO Do Kwon being held accountable for significant losses related to the collapse of the Terra ecosystem.
The ongoing turmoil within Terraform Labs has led to additional disruptions, such as the planned reopening and subsequent permanent closure of the Shuttle Bridge, resulting in the destruction of remaining assets. These events underscore a challenging period for the Terra ecosystem and associated assets, highlighting the ongoing obstacles in the cryptocurrency space.
Furthermore, the breach not only impacted the stolen tokens but also caused a sharp decline in Terra Blockchain’s native token, Terra (LUNA), from trading above $0.4 to $0.3845. While the token has partially recovered to $0.3941, it still reflects a 2.71% decrease in the past 24 hours.
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