Memecoin Trader Loses Over $1M to Normie Exploit

The unfortunate Memecoin trader suffered a loss of over 99% on his initial $1.16 million investment following a Normie exploit.

A merchant suffered a financial loss exceeding $1 million in digital assets due to the Normie memecoin exploit.

According to a May 26 X post by Lookonchain, the memecoin merchant spent over $1.16 million to acquire 11.23 million Normie (NORMIE) memecoins, but his initial investment dropped by over 99% to $150.

“He spent $1.16M to buy 11.23M $NORMIE at $0.1035 from Mar 25 to Apr 9 and has held it until now without selling it.”

An intelligent contract vulnerability affecting the Base-native memecoin Normie washed out over $41.7 million from the token’s market capitalization in less than three hours. On May 26, Lookonchain was the first to identify the vulnerability in an X post.

The exploit caused Normie’s value to plummet by more than 96%, with its market capitalization reaching a low of approximately $200,000 before initiating a modest recovery, as reported by CoinGecko data.

The Normie team purportedly accepted the hacker’s offer to return 90% of the stolen NORMIE tokens on May 27. This agreement required Normie to introduce a new token to reimburse NORMIE holders using the returned funds and an additional $2.3 million from the team’s development wallet.

An exploiter’s blockchain message observed by Lookonchain indicates that the hacker demanded that the token launch occur before the stolen funds return.

“The dev wallet made significantly more than I did during this exploit, and I have no other way to ensure that those funds are used appropriately.”

X was inundated with a deluge of fraudulent Normie posts that falsely claimed to herald the relaunch of the new token following the hacker’s offer. The purpose of these posts was to entice individuals to click on bogus hyperlinks.

Initially identified in March, the intelligent contract vulnerability affected more than 72,000 Normie holders, per an X post dated May 26 by on-chain analytics firm Quick Intel.

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

Metricoin merchants continue to purchase cryptocurrencies embellished with animals despite the regrettable mishap.

CoinMarketCap data indicates that the frog-themed memecoin Pepe PEPE, denominated at $0.000017, attained a fresh all-time high of $0.00001718 on May 27, following a week-long ascent of more than 75%.

Due to the absence of inherent utility, memecoins rank among the most volatile digital assets. Despite the inherent dangers, specific traders are amassing millions of dollars through the adept navigation of this high-risk market segment.

Two weeks ago, a wise Pepe merchant utilized the memecoin to convert $3,000 into $46 million. The Pepe price increased in response to the return of the GameStop incident, and the trader’s initial investment was returned over 15,718 times.