### Terra Crash Mastermind Exposed#
Hot Topic Overview
Overview
The Terra collapse may not have been solely orchestrated by Do Kwon, but rather a coordinated attack by an unknown third party. The attackers launched a large number of transactions from multiple addresses, causing congestion on the Terra network and using bot trading to hinder UST's recovery of its dollar peg. The attackers ultimately profited from arbitrage opportunities, while Terra founder Do Kwon faces extradition to the United States for investigation. Currently, the real culprits remain at large, and the specific details of the event are still under investigation.
Ace Hot Topic Analysis
Analysis
The revelation of the mastermind behind the Terra collapse has sparked widespread attention, with Notional Labs founder Jacob Gadikian suggesting that the crash of Terra's algorithmic stablecoin was likely the result of a coordinated attack. He believes that an unidentified third party launched an attack against the Terra blockchain, disrupting the 1 UST peg and profiting from it. The attackers initiated over 70,000 failed transactions through a handful of addresses, causing congestion in the validator nodes' memory pool and hindering Terra's ability to restore the UST peg. During the attack, on-chain transaction volume surged sixfold, with a large number of bot trades further exacerbating the UST de-pegging. Gadikian also showcased a video of a Cosmos hub security testnet being attacked, which closely mirrored the situation during the UST de-pegging. While investigations are ongoing, the true culprits remain at large, while Terra founder Do Kwon faces the risk of extradition to the United States to face charges. This incident once again highlights the security risks in the DeFi space and raises questions about the mechanisms of algorithmic stablecoins.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Terra's collapse may have been caused by a coordinated attack orchestrated by an unknown third party.
The attackers used bot trading to prevent Terra from recovering the UST dollar peg through its economic model.
The attackers initiated over 70,000 failed transactions from a small number of addresses, causing congestion in the validator nodes' memory pool.
Terra's collapse was not solely caused by Do Kwon, the real orchestrators are still at large.