Thursday, June 20, 2024

Normie crypto plummets 90%: What happened and what’s next?

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  • NORMIE has declined by around 90%.
  • Developers have agreed to a relaunch.

Normie crypto recently experienced a significant exploit that caused the value of its token and market cap to plummet dramatically.

“Normie” is a term referring to normal people, and it may have lived up to its name. Investors found themselves facing losses, turning them into “normal people” in terms of their holdings.

Hackers strike Normie crypto

On 26th May, holders of Normie crypto [NORMIE] witnessed a devastating decline in the value of their holdings within minutes.

The cause of this decline was an attack orchestrated by an unidentified hacker. The hacker executed a flash loan attack, exploiting a loophole in NORMIE’s contract tax mechanism.

This enabled them to borrow a significant amount without providing collateral. They went further to manipulate the token’s supply and repay the loan in the same transaction.

The exploiter managed to acquire 5 million tokens, granting themselves the necessary permissions, and then utilized a flash loan to continuously fill up the contract account until they could drain it.

Although the token was originally intended to have a supply of 1 billion, the hackers exploited a tax function in the token’s contract to issue more tokens than intended.

Following the attack, the hacker made some interesting demands.

Normie crypto hacker tables demands

The hacker transmitted an on-chain message to the Normie crypto team, stipulating terms for the return of a portion of the funds. They proposed to return 90% of the funds and retain 10% as a bug bounty, with no reprisals.

However, the condition for returning the funds was that the 600 ETH in the dev wallet must be utilized to fairly launch a new token for reimbursing NORMIE holders. According to reports, the Normie developers agreed to the bounty offer.

At the time of this writing, 600 ETH was worth over $2.3 million based on the current price. 

Additionally, the hacker pointed out that the Normie crypto contract was a copy-and-paste job and felt it had not been adequately reviewed.

They highlighted that many memecoins operated on similar codes. This revelation suggests that a significant portion of memecoins might be vulnerable to similar types of attacks.

Normie sees a sharp fall

An analysis of the Normie crypto price movement revealed a staggering loss of 66.49% on 26th May, coinciding with the occurrence of the hack.

The price plummeted from approximately $0.04 to around $0.014. As of the current writing, the decline has extended by over 23%, resulting in a total decline of around 90% within the last 24 hours.

Normie was trading at approximately $0.011. 

Normie crypto price trend

Source: CoinGecko

Also, this decline in price caused the market cap to plummet to around $2.9 million from its previous value of over $40 million.

 

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