Trader Loses $1 Million in Normie Memecoin Exploit, Market Volatility Continues
Summary:
A digital asset trader lost over $1 million following a smart contract exploit of memecoin Normie (NORMIE), with the value of his 11.23 million coins plummeting by 99% to just $150. The exploit wiped over $41.7 million off Normie's market capitalization in mere hours. Following the exploit, the hacker purportedly agreed to return 90% of the stolen coins, on the stipulation that a new token using these returned funds is introduced to compensate NORMIE holders. More than 72,000 Normie holders were affected by the exploit. Despite these incidents, traders of memecoins, such as the frog-themed Pepe, remain active.
A sorry situation unfolded for a trader who lost more than $1 million in digital assets following an attack on the Normie memecoin. The investor had spent an excessive $1.16 million to acquire 11.23 million Normie (NORMIE) memecoins. Sadly, his initial venture saw a dramatic drop of 99% to merely $150, as reported in a May 26 X post by Lookonchain. This trader held onto his purchase, not selling any of the 11.23 million $NORMIE coins that he bought between March 25 and April 9, at a rate of $0.1035 each.
Normie, hailing from the Base-native memecoin, underwent a perilous smart contract exploit that slashed over $41.7 million off the currency's market capitalization within an alarming span of three hours. Lookonchain was the first to spot and report this exploit in a May 26 X post.
Following this exploit, Normie’s value nosedived over 96%, bottoming out near the $200,000 mark in its market capitalization. A glimpse of hope shone when the currency started to slightly recover, as evidenced by CoinGecko data.
In a notable development on May 27, the Normie team reportedly consented to the hacker's proposition to refund 90% of the usurped NORMIE tokens. This agreement stood on the condition that the regained funds, supplemented with $2.3 million from the team's developmental reserve, would be employed to introduce a new token compensating NORMIE holders.
The exploiter insisted that the token must be launched prior to refunding the stolen funds, as observed in messages from the exploiter on the blockchain, disclosed by Lookonchain. Post this agreement, X was flooded with bogus Normie posts, which falsely claimed the introduction of the new token and attempted to trick people into falling prey to counterfeit links.
The smart contract exploit, spotted first in March, impacted a substantial number of over 72,000 Normie holders, as declared in a May 26 X post by on-chain analytics firm Quick Intel.
In spite of this unfortunate event, traders of memecoins continued to remain resilient. They stayed steadfast in purchasing animal-themed cryptocurrencies.
One such instance is the frog-themed memecoin Pepe (PEPE) marking a new all-time record of $0.00001718 on May 27, after bouncing back over 75% over the prior week, as per CoinMarketCap data.
Considering memecoins don't possess inherent utility, they are some of the most fluctuant digital assets. Yet, considering the inherent perils, certain traders are benefiting incredibly, racking up millions by successfully riding through this hazard-filled market segment.
Illustratively, a shrewd Pepe trader managed to convert a modest $3,000 into a whopping $46 million by trading the memecoin a fortnight ago. An over 15,718 times ROI was achieved, fueled by the revival of the GameStop narrative, which boosted the Pepe price.
Published At
5/27/2024 3:34:42 PM
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