Punycode makes it possible to register domains with foreign characters. It works by converting individual domain label to an alternative format using only ASCII characters. For example, the domain "xn--s7y.co" is equivalent to "短.co".
That basically means if you don't eliminate this threat ( which I will explain how to do below) it is very easy to be targeted. You could either be lured on a fake slack, with fake profiles, a fake online wallet (to steal your login credentials) etc.
But luckily you have me, and I can tell you how to make it impossible to fall for such an attack, all you have to do is use Firefox, enter "about:config" in your url bar, hit enter, then search for "puny" and double click the upcoming entry, so it is true, instead of false. Keep your coins safe guys : )