• Wed. Jun 22nd, 2022

After the collapse of Luna, Terra turns to the new blockchain. This week’s top Bitcoin and Crypto news

ByHazel R. Lang

May 21, 2022

After two linked cryptocurrencies collapsed and became almost worthless, a plan emerged to create a new blockchain for the luna cryptocurrency. Seth Green’s NFTs were stolen in a phishing scam. Nike and StockX are in a legal battle that could determine how intellectual property rights will be applied to NFTs in the future. Here’s what happened in crypto over the week:

Terra Blockchain CEO has a plan to revive Luna after the crash

Last week, luna and terraUSD, two linked cryptocurrencies on the terra blockchain, crashed and lost most of their respective values. People who held these tokens lost most of their investment.

Do Kwon, CEO of Terraform Labs, the company behind luna and terraUSD, released a plan on Monday to “transform” terra’s old blockchain network into a new one. Luna token owners are allowed to vote on the proposal. At present, around 79% of votes are in favor of the plan, with four days to vote.

Kwon’s plan proposes that a new terra blockchain be created from the old one, and the new one would then be the default terra blockchain with a new luna cryptocurrency. The original terra blockchain would be renamed “terra classic”. The nearly worthless original luna cryptocurrency and stablecoin terraUSD would not exist on the new terra blockchain.

This is not the first time someone has suggested forging a blockchain. Ethereum embarked on a new blockchain in 2016 after a hacker stole millions of ether. The ethereum blockchain and the classic ethereum blockchain both exist today.

Read GameSpot’s full story on Luna’s stimulus package here.

Seth Green’s NFTs caught in phishing scam

Robot Chicken’s Seth Green and Austin Powers fame took to Twitter on Tuesday to mourn the loss of his NFTs to a phishing scam. Green lost four expensive NFTs, including one from the popular Bored Ape Yacht Club collection. NFTs taken from Green were previously sold for a combined value of over $200,000.

The phishing scam that Green fell for has become a popular way for cyber crooks to phish the NFTs of unsuspecting wallet holders.

Here’s how the scam works – hackers can send you a link to an NFT spam site, where you can connect your existing digital wallet which may contain NFTs. If you click on a phishing link while your wallet is connected to the browser, your NFTs may be transferred to another wallet controlled by the scammer.

The addresses of digital wallets and the transactions involving them are usually public, so people can see which wallet contains the phished NFTs, even if the owner of the wallet is anonymous. Green noted in his tweet that one of the NFTs had already been resold and asked the buyer to contact him.

Read CNET’s full story on the phishing incident here.

Legal dispute between Nike and StockX goes from NFTs to counterfeit sneakers

StockX is an online retailer that caters primarily to sneaker lovers who are willing to spend hundreds or even thousands of dollars on collectible sneakers. Nike filed a lawsuit against StockX earlier this year because the online merchant was selling Nike sneaker NFTs without Nike’s permission.

NFTs are still a relatively new technology, and the intellectual property laws surrounding them are far from clear. If this case goes to court, it could determine how intellectual property laws regarding NFTs will work in the future. It’s also important to note that Nike sells its own NFT sneakers independently of StockX.

Nike amended its legal complaint against StockX this week to include accusations that the online retailer is selling counterfeit Jordan sneakers (physical sneakers, not digital). One of the main reasons StockX is such a popular collectible sneaker retailer is their guarantee of authenticity, which is important when buying a pair of shoes online for hundreds of dollars.

Read CNET’s full story on why Nike and StockX are in a legal fight.

Thanks for reading. We’ll be back with lots more next week. In the meantime, check out this story from Bree Fowler about how the digital footprints we leave on the internet are bigger than we think.

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