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A memecoin trader lost over $1M due to a Normie exploit

The trader experienced a devastating loss of more than 99% on their initial investment of $1.16 million due to a smart contract exploit.

Time to Invest in These Top 10 Meme Coins in 2023–24 | by Jawad Hussain |  Web 3 Digitals | Medium
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A trader faced significant losses exceeding $1 million in digital assets due to an exploit involving the Normie memecoin.

Investing $1.16 million to acquire 11.23 million Normie (NORMIE) memecoins, the trader experienced a drastic plunge in their initial investment, plummeting over 99% to a mere $150.

Normie, a memecoin native to the Base network, experienced a significant setback due to a smart contract exploit, resulting in a loss of over $41.7 million from its market capitalization within a mere three-hour window. The exploit was initially identified by Lookonchain in a May 26 post on X.

Following the exploit, Normie’s value plummeted by more than 96%, with its market capitalization hitting a low of around $200,000 before showing signs of a modest recovery, as per data from CoinGecko.

Earlier today, on May 27, the Normie team apparently accepted the hacker’s proposal to give back 90% of the pilfered NORMIE tokens. This arrangement hinged on Normie utilizing the returned funds, coupled with $2.3 million from the team’s development wallet, to initiate a new token aimed at compensating NORMIE holders.

The hacker insisted that the token launch precede the return of the stolen funds, as indicated in a blockchain message from the exploiter observed by Lookonchain.

Following the hacker’s proposition, X found themselves bombarded with a deluge of counterfeit Normie posts, deceitfully proclaiming the imminent relaunch of the new token. These posts were crafted to entice individuals into clicking on deceptive links.

According to a May 26 post from on-chain analytics company Quick Intel, the smart contract exploit, initially detected in March, affected more than 72,000 Normie holders.

Memecoin season continues, sending Pepe to new all-time high

Despite the setback, traders in the memecoin market remain undeterred, persistently investing in animal-themed cryptocurrencies.

The frog-themed memecoin Pepe (PEPE) saw its price surge to a new record of $0.00001718 on May 27, marking a staggering 75% increase over the past week, according to data from CoinMarketCap.

Some traders are capitalizing on the extreme volatility of memecoins, despite their lack of intrinsic value. Recently, a skilled Pepe trader transformed a $3,000 investment into a staggering $46 million within two weeks. The resurgence of the GameStop phenomenon contributed to the surge in Pepe’s value, allowing the trader to achieve an extraordinary return of over 15,718 times their initial investment.

Read More: Solana (SOL) price is down today?

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