The price of Normie memecoin (NORMIE) plummeted by 99% in less than three hours after a smart contract breach, temporarily reducing its market capitalization from almost $42 million to $200,000. This dramatic fall was followed by a demand from the hacker to recover 90% of the stolen funds, which led to a negotiation with the team behind the memecoin.
The vulnerability of smart contracts
The smart contract vulnerability was discovered by Blockchain analytics firm Lookonchain, which reported the exploit and the hacker's offer in an online message to Normie's deployment address on May 26. The team behind Normie accepted the hacker's offer to recover 90% of the stolen NORMIE tokens, but on condition that the stolen funds and $2.3 million in the development portfolio be used to launch a new token.
Hacker conditions
However, the hacker doubled down on his conditions, claiming that the launch of a new token must take place before the funds are returned. "The development portfolio earned significantly more than I did during this exploit, and I have no other way to guarantee that these funds are used appropriately." Normie's official community administrator, Dinho, said he could not confirm when NORMIE token holders would be able to recover their stolen funds.
Implications for the future
The implications for the future of Normie memecoin are significant. The smart contract vulnerability has led to a loss of confidence in the platform's security, which could affect the company's future. In addition, negotiating with the hacker to recover the stolen funds could take time and could lead to a further loss of trust in the platform.
