(27 May 2024, 14:30 PM IST):
In the wild world of cryptocurrency, there’s always something happening. The recent hack of Normie (NORMIE), a meme coin built on Ethereum’s Layer 2 network Base, serves as a stark reminder of the risks and vulnerabilities that lurk within this memecoin market.
The Normie token, once hailed as a potential path to riches, suffered a devastating blow after a smart contract exploit triggered a catastrophic 99% drop in its value. This exploit capitalized on a weakness within the token’s tax function, allowing the attacker to manipulate Normie’s total supply and drain its liquidity pools.
One unfortunate investor’s experience exemplifies the immense damage caused by the exploit. Data from on-chain provider Lookonchain reveals that between March 25th and April 9th, the individual invested a significant sum ($1.16 million) to acquire 11.23 million NORMIE tokens at a price of $0.1035 each. However, in the wake of the exploit, the value of this investment plummeted to a mere $150. Remarkably, the investor held onto these tokens, witnessing their value evaporate before their eyes.
Since $NORMIE was exploited, the 11.23M $NORMIE that this trader spent $1.16M to buy is now worth less than $150.
— Lookonchain (@lookonchain) May 26, 2024
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.https://t.co/za6YaldkoZ pic.twitter.com/6lJRJsU2mq
In an unexpected twist, the hacker behind the exploit offered to return a staggering 90% of the stolen funds on the condition that the Normie team relaunch the project. This proposal outlined a plan to utilize the returned funds, along with the 600 ETH held in the project’s development wallet (approximately $2.3 million), to compensate affected NORMIE token holders through the issuance of a new token.
The attacker’s criticism of Normie’s smart contract code, labeled a “copy-paste” job, brings to light a wider problem within the cryptocurrency space. It exposes the prevalence of vulnerabilities stemming from poorly reviewed code and the potential consequences that follow.
Furthermore, the attacker emphasized that Normie’s flawed tax logic is not an isolated incident, but rather a characteristic prevalent across numerous token contracts, many predating Normie. This revelation underscores the urgent need for rigorous code audits and proactive measures to address vulnerabilities within cryptocurrency projects.
The Normie team, in response to the attacker’s offer, opted to accept, demonstrating their commitment to rectifying the situation and reviving the project. They pledged to dedicate all resources within their development wallet to address the exploit’s fallout and support the project’s relaunch.