The Normie memecoin project experienced a devastating flash loan attack that resulted in a 100% drop in the price of $NORMIE and a $41.7 million decrease in market cap in just a few hours. The attacker exploited a vulnerability in the contract tax mechanism, allowing them to manipulate the token supply and repay the borrowed cryptocurrency without collateral. As a result, the token’s price plummeted by over 99%, causing significant losses for holders.
Following the attack, the hacker reached out to the Normie team and offered to return 90% of the stolen funds in exchange for launching a new token to refund holders. The team accepted the offer, stating that there would be no reprisals against the hacker. The conditions set by the exploiter involved using the returned assets and additional funds from the development wallet to create a new token for compensating NORMIE holders. Despite this agreement, the token’s price continued to decline, leading to concerns among holders.
Despite maintaining communication via various platforms, including a temporary account on X, the Normie team faced challenges in regaining access to their main accounts. This led to speculation and concerns among holders who felt uninformed about the project’s future steps. Additionally, some users raised questions about the possibility of the hack being an “insider job,” highlighting the lack of transparency in the project’s communication post-hack.
The NORMIE token, launched during a surge in memecoin popularity on the Base blockchain, reached a peak market cap of $130 million in April 2024. However, the exploit on May 26 led to a significant decline in the token’s price, with losses exceeding 99.5% within hours. Despite a brief recovery, the market cap dropped to a mere $200,000 from the initial value of $41.9 million. Quick Intel, an on-chain scam detection tool, reported that 72,000 NORMIE holders were affected by the exploit, underscoring the widespread impact of the attack.
In response to the hack, the Normie team initiated refund measures for affected token holders. They urged holders to register for a snapshot to receive compensation for their losses, with the registration deadline set until the end of May. By offering refunds to affected users, the team aims to mitigate the financial impact of the exploit and rebuild trust among the community. However, the project’s ongoing challenges in communication and recovery efforts have left many holders uncertain about the future of the NORMIE token and the project as a whole.
Overall, the flash loan attack on the NORMIE memecoin project has highlighted the vulnerabilities within DeFi systems and the potential risks faced by cryptocurrency holders. As the project navigates the aftermath of the exploit and works towards reimbursing affected users, transparency, communication, and security measures will be crucial in rebuilding trust and ensuring the long-term sustainability of the token. By learning from this incident and implementing stronger security protocols, projects in the DeFi space can better protect their communities and mitigate the effects of potential exploits in the future.
