After the Normie memecoin exploit, an unlucky trader lost more than $1 million in digital assets. According to a Lookonchain article from May 26, X, the memecoin dealer lost almost 99% of his initial investment of over $1.16 million, which he used to purchase 11.23 million Normie (NORMIE) memecoins.
“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.”
A smart contract hack that targeted the Base-native memecoin Normie erased approximately $41.7 million from its market capitalization in just three hours. In an X post from May 26, Lookonchain was the first to report the exploit. According to CoinGecko data, Normie’s value dropped by more than 96% after the exploit, and its market cap peaked at about $200,000 before beginning a little recovery.
The hacker’s offer to refund 90% of the NORMIE tokens that were stolen was apparently accepted by the Normie team earlier on May 27. This deal was conditional on Normie issuing a new token to compensate NORMIE holders with the returned monies and $2.3 million from the team’s development wallet. According to a blockchain message from the exploiter that Lookonchain was able to view, the hacker has insisted that the token launch take place before they refund the monies that were taken.
“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.”
After the hacker’s offer, X was inundated with a wave of fake Normie posts, falsely claiming to announce the relaunch of the new token. These posts aimed to lure people into clicking on fraudulent links.
Over 72,000 Normie holders were impacted by the smart contract exploit, that was first detected in March, according to a May 26 X post by on-chain analytics firm Quick Intel.
The terrible incident hasn’t stopped memecoin traders from purchasing cryptocurrency with animal themes. The frog-themed memecoin Pepe surged almost 75% over the previous week, hitting a new all-time high of $0.00001718 on May 27, according to CoinMarketCap data.
Memes rank among the most volatile digital assets due to their lack of intrinsic value.Some traders are profiting millions from this high-risk market area despite the obvious risks. Through the use of the memecoin, an astute Pepe trader made $46 million out of $3,000 two weeks ago.Pepe’s value increased when the GameStop story came back, and the trader’s original investment was more than 15,718 times profitable.