Highlights:
- The Normie Coin market plummeted over 99% in minutes due to a flash loan attack, collapsing its value from $40 million to less than $200k.
- Following the attack, the Normie project team reported that the hacker agreed to return 90% of the stolen funds, planning a project relaunch.
- All affected Normie Coin investors will need to register for a compensation snapshot after the hack caused a severe price drop.
On May 26, 2024, the cryptocurrency Normie Coin suffered a severe price crash following a flash loan attack. Originally valued at $40 million, the memecoin’s market worth plummeted to a mere $200,000 in mere hours, leaving investors reeling from the abrupt loss.
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Memecoin Normie was attacked, and its price plummeted by more than 99% in one minute, with its market value falling from $40 million to less than $200k. The supply of Normie has been significantly increased, and the attacker used a loophole in the contract’s tax mechanism to…
— Wu Blockchain (@WuBlockchain) May 26, 2024
Flash Loan Attack Mechanics
A flash loan attack is an exploit specific to the decentralized finance (DeFi) sector. It involves borrowing large amounts of cryptocurrency with no collateral, manipulating market conditions or contract vulnerabilities, and then repaying the loan within the same transaction block.
In the case of Normie Coin, the assailant took advantage of a loophole in the contract’s tax mechanism, dramatically inflating the supply and effectively draining the liquidity pools, which caused the token’s price to crash. Normie Coin, which was stable around $0.05, plunged, adding several zeros and reducing substantial investments to mere dollars.
Response from Normie Coin Team
Fortunately, the aftermath of the attack saw a glimmer of hope for Normie Coin holders. The Normie Coin project team issued a statement to reassure investors. The team reported that the hacker had contacted them and agreed to return 90% of the stolen funds. The returned funds would be used to relaunch the project and compensate affected investors.
Exploiter, we accept your offer to return 90% of the exploited $ETH. You may keep 10%, no reprisals.
All $ETH from the normie dev wallet will be used to rectify this situation and assist in our relaunch.
— Normie (@NormieBase) May 26, 2024
Additionally, the Normie Coin team requested that they will need to decide on the exact time for all affected token holders to register for a snapshot to facilitate the compensation process. This move aims to restore some confidence among investors and demonstrate the team’s commitment to resolving the situation.
Again, we won’t rush things. we are here & if you need anything check pinned or dm on telegram.
Telegram chat will be muted until we have new updates.
Everyone was caught by surprise. We worked very hard to build normie and we won’t stop anytime soon.
the most likely scenario… https://t.co/iwnWi0NZOn
— Normie (@NormieBase) May 26, 2024
The sudden and severe impact of the hack has left investors reeling, with many seeing their significant investments shrink to a fraction of their former value. This incident serves as a stark reminder of the vulnerabilities inherent in the cryptocurrency market, especially regarding newer and less established tokens like Normie Coin.
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