The cryptocurrency market is no stranger to volatility, and the recent case of the Normie (NORMIE) token is a stark reminder of the risks involved in investing in such assets. A smart contract exploit led to a drastic drop in the token’s value, causing significant losses for investors and highlighting the importance of security and due diligence in the blockchain space.
Within a span of three hours, the value of the Normie token plummeted by 99% after falling victim to a smart contract exploit. This resulted in the token’s market cap collapsing from $42 million to a mere $200,000, shocking investors and observers alike. The exploit was first detected by the blockchain analytics firm Lookonchain, which alerted the community and the developers of the Base meme coin, the creators of Normie.
Following the exploit, the hacker responsible for the incident reached out to Normie’s developers with an offer to return 90% of the stolen funds. The hacker proposed that the remaining 10% be kept as a bug bounty, with no repercussions. Additionally, the hacker demanded that the stolen funds, along with 600 ETH from the team’s dev wallet, be used to launch a new token to reimburse Normie holders. Despite the hacker’s terms, the Normie team expressed their intentions to re-launch the token once they recovered their main Twitter account and the funds from the exploiter.
The exploit had a significant impact on Normie holders, with over 72,000 individuals affected by the sharp decline in value. An anonymous trader, who had invested $1.16 million in acquiring NORMIE tokens at the cryptocurrency’s peak, faced substantial losses as the token’s value plummeted. The trader saw their initial investment diminish to less than $150, highlighting the risks associated with investing in volatile assets like meme coins.
Despite the initial shock and losses incurred, Normie has shown signs of recovery in recent days. The token’s price has experienced a 57% increase in the last 24 hours, with its market cap standing at $1,043,837 and a price of $0.001053 at the time of writing. This resurgence comes after a steep decline that saw the token’s price drop by over 90% in the wake of the exploit.
The story of the Normie token serves as a cautionary tale for investors in the cryptocurrency market. The rapid rise and fall of the token, driven by a smart contract exploit, underscore the importance of security measures and due diligence when participating in such markets. While Normie may have faced a challenging period, its road to recovery highlights the resilience of the cryptocurrency community in the face of adversity. As the market continues to evolve, it is essential for investors to remain vigilant and informed to navigate the risks and opportunities presented by blockchain assets.