Normie, a meme coin based on the Ethereum layer 2 network, has been subjected to a severe exploit, causing the value of its token to drop by 99%.
The project team acknowledged the breach and agreed to the attacker’s proposal to return the stolen assets.
Free fall of Normie’s market value
An attacker exploited a vulnerability in Normie’s contract tax mechanism and conducted a flash loan attack that dramatically increased the supply of meme tokens. This exploit caused a 99% drop in the value of the token while the market cap rose from approximately $41 million to approximately $1.3 million.
Lookonchain highlighted the severe impact on traders. The analyst noted that a trader whose $1.16 million investment in NORMIE is now worth less than $150. Likewise, many other token holders expressed their significant losses on the project’s official Telegram channel.
Meanwhile, cryptocurrency exchange LBank reported an influx of Normie token deposits, suggesting a link to the exploit.
“We have noticed a large number of unusual NORMIE token deposits, potentially related to the exploit. We urge the project team to contact us with details about the addresses in question and potential solutions,” LBank stated.
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Interestingly, the attacker offered to return 90% of the stolen assets if the project releases a new token to compensate affected coin holders.
In response, Nurmi’s team accepted the proposal and assured that there would be no retaliation. Additionally, the project stated that all ETH tokens in its development wallet will be committed to the recovery effort. On-chain data shows that Normie’s developer wallet currently contains about 736 ETH, worth approximately $11.7 million.
“Scalper, we accept your offer to return 90% of the exploited ETH. You can keep 10%, without any retaliation. Every $ETH from Normie’s dev wallet will be used to rectify this situation and help with our relaunch,” Normie’s team stated.
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Normie is a memecoin that was launched on Base in March during the meme coin craze that swept the blockchain network after the introduction of the Dencun Upgrade, which significantly reduced fees for Ethereum’s layer 2 networks. The project achieved some early successes, with its market value reaching more than $100 million before this incident.
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