An unlucky trader experienced a loss of more than 99% on their initial $1.16 million investment due to a smart contract exploit. The exploit, involving the Normie memecoin, led to the trader losing over $1 million worth of digital assets.
According to a May 26 post by Lookonchain, a memecoin trader invested over $1.16 million to purchase 11.23 million Normie (NORMIE) memecoins at a rate of $0.1035 between March 25 and April 9. However, the value of his initial investment plummeted by more than 99%, leaving him with only $150, as he has held onto the coins without selling them until now.
Normie Memecoin Faces Devastating Exploit and Recovery Efforts
Normie, a Base-native memecoin, experienced a severe smart contract exploit that resulted in a staggering $41.7 million loss from its market capitalization within just three hours. Lookonchain initially flagged this exploit in a post on May 26.
Following the exploit, Normie’s value plummeted by over 96%, causing its market cap to drop to approximately $200,000, as reported by CoinGecko.
Normie/USDT, 1-day chart. Source: Coingecko
In response to the attack, the Normie team reportedly agreed on May 27 to the hacker’s terms, agreeing to return 90% of the stolen NORMIE tokens. This agreement is contingent upon Normie utilizing the recovered funds, along with an additional $2.3 million from the team’s development wallet, to launch a new token aimed at compensating NORMIE holders.
Normie Faces Further Challenges Amid Hacker Demands and Scam Attempts
The hacker responsible for the Normie smart contract exploit has demanded that the token launch a new token before returning the stolen funds, as indicated in a blockchain message reviewed by Lookonchain.
“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.”
Following the hacker’s demands, there was a surge of fake Normie posts across X, falsely claiming the imminent relaunch of a new token. These fraudulent posts aimed to deceive users into clicking on malicious links.
According to on-chain analytics firm Quick Intel, the smart contract exploit, initially detected in March, impacted over 72,000 Normie holders.
Memecoin Traders Thrive Amid Volatility and High Returns
Despite recent setbacks in the memecoin sector, traders remain undeterred, continuing to invest in animal-themed cryptocurrencies.
Pepe, a frog-themed memecoin with ticker PEPE, recently achieved a new all-time high of $0.00001718 on May 27, following a remarkable 75% increase over the past week, according to CoinMarketCap data.
Pepe/USDT, 4-hour chart. Source: CoinMarketCap
Memecoins are known for their extreme volatility and lack of intrinsic utility, making them one of the riskiest digital assets to trade. Despite these risks, some traders are capitalizing on the market’s high volatility, generating substantial profits.
In a notable example, a Pepe trader transformed a $3,000 investment into a staggering $46 million just two weeks ago. This success story was fueled in part by renewed interest in the GameStop saga, which contributed to a surge in Pepe’s price. The trader achieved an extraordinary return of over 15,718 times on their initial investment, showcasing the potential for immense gains in the memecoin market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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