In a dramatic turn of events, the team behind the Base memecoin Normie (NORMIE) is currently negotiating with a hacker following a significant exploit that led to a staggering $41.7 million drop in the token’s market cap in under three hours. The incident, which was first detected by blockchain analytics firm Lookonchain on May 26, involved a smart contract vulnerability that the hacker exploited to manipulate the token’s market dynamics drastically.
Hacker’s Offer and Negotiation Dynamics
The hacker initially proposed an offer, communicated through an on-chain message to the Normie deployer address, suggesting the return of 90% of the stolen tokens. The Normie team has reportedly agreed to this proposal, with the condition that the recovered funds, along with an additional $2.3 million from the team’s development wallet, be used to launch a new token. This new token is intended to reimburse NORMIE holders for their losses. Despite the agreement, the token’s price had already plummeted by 96% since the exploit.
- Hacker’s Conditions:
- Return of 90% of stolen tokens.
- Re-launch of the token before funds are returned.
- Assurance of no legal repercussions.
Communication Challenges and Response
Following the hack, Normie’s team faced additional hurdles as their main X account was suspended, prompting them to communicate through a new account, which was also later suspended. The team expressed intentions to re-launch the token contingent on the recovery of their main social media account and the retrieval of funds from the hacker.
Market Impact and Holder Sentiment
The price of NORMIE tokens began to fall dramatically at 3:55 AM UTC on May 26, plummeting over 92% within an hour to a low of $0.0032. Despite a brief spike, the price continued its downward trend. At the time of writing, it stands at $0.0016, marking a 96% fall from its pre-exploit price. The market cap, which initially dropped from $41.9 million to $200,000, has seen only a slight recovery.
This incident casts a spotlight on the broader issues facing the memecoin market on the Base platform. A recent investigation by Cointelegraph revealed that 91% of Base memecoins have vulnerabilities that could lead to substantial losses, underscoring the need for more rigorous security measures and scrutiny in the development of these digital assets.
| Time | Event | Impact |
|---|---|---|
| May 26, 3:55 AM UTC | Initial drop in NORMIE token price | Price fell to $0.0032, down over 92% |
| May 26, Post-Hack | Hacker’s proposal received | Agreement to return 90% of stolen tokens |
| May 27 | Continued price decline | Price at $0.0016, market cap at $200,000 |
The Normie token incident is a stark reminder of the vulnerabilities associated with memecoins and the broader DeFi ecosystem. As negotiations between the Normie team and the hacker continue, the outcome will likely have significant implications for token holders and could set a precedent for how similar situations are handled in the future.
Featured image credit: DALL-E by ChatGPT