The cryptocurrency industry has a long and unfortunately well-documented history with hacks and scams. The latest victim? Normie (NORMIE), a memecoin project that took a massive blow after a security exploit triggered a near-total collapse in its value.
On May 26, 2024, a hacker identified a vulnerability in Normie’s smart contract, a critical piece of code governing the token’s functionality. This vulnerability allowed the hacker to manipulate the token’s tax mechanism, leading to a flash loan exploit and a subsequent crash. Normie’s value plummeted a staggering 99% within a few hours, dropping from $0.0427 to a mere $0.00002.
Security firm QuickIntel claims to have identified the exploit back in March, raising questions about the project’s commitment to secure coding practices. This has fueled criticism towards Normie’s developers, who are also facing flak for their perceived lack of transparency and communication with the community.
Normie Hacker Offers Partial Repayment, With Strings Attached
Following the crash, a tense negotiation emerged between the hacker and Normie’s developers. Blockchain security firm Lookonchain highlighted on-chain messages where the hacker offered to return a significant portion, 90%, of the stolen funds. However, these “good intentions” come with a hefty price tag.
The hacker demands a 10% cut, essentially keeping a portion of the stolen money. Additionally, they propose using the returned funds and the 600 ETH (around $2.3 million) currently held in the developer’s wallet to launch a completely new token. This new token, according to the hacker, would serve as a form of compensation for the impacted Normie holders, a group estimated at around 79,000.
Also Read: Cryptocurrency’s Achilles’ Heel: Understanding and Mitigating Address Poisoning Attacks
The developers, eager to salvage the situation, swiftly accepted the offer. However, a new hurdle emerged. The hacker insists that the new token launch must proceed before any reimbursements are issued. This creates a precarious situation, with the community’s trust hanging in the balance.
A Cautionary Tale for the Cryptoverse
The Normie hack serves as a stark reminder of the inherent risks associated with the cryptocurrency space. Investors must exercise caution and thoroughly research projects before investing, particularly those with memecoin status. Additionally, the importance of robust smart contract audits and open communication between developers and their communities cannot be overstated. Only through a commitment to security and transparency can the industry build a foundation for sustainable growth.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
