A Memecoin trader lost over $1 million following the Normy exploit.
An unlucky trader has lost over a million dollars worth of digital assets following Normy's Memecoin exploit.
A memecoin trader spent more than $1.16 million to buy 11.23 million Normie (NORMIE) memecoins, but his initial investment dropped more than 99% to $150 on May 26 X posted on Lookonchain.
From March 25 to April 9, he spent $1.16M to buy $11.23M NORMIE at $0.1035 and has remained unsold until now.
Normy is a base-native memecoin that suffered a modern contract exploit that wiped more than $41.7 million from its token's market capitalization in three hours. Lookonchain was the first to point out the exploit in a May 26 X post.
Normi's price fell more than 96 percent following the exploit, as its market cap fell to $200,000 before starting a small recovery, according to CoinGecko data.
Earlier on May 27, the Normie team reportedly agreed to the hacker's offer to return 90% of the stolen NORMIE tokens. The deal was contingent on Normie launching a new token that would repay NORMIE owners using the returned funds, along with $2.3 million from the group's development portfolio.
The hacker demanded that the token launch should happen before they could return the stolen funds.
“Dave's wallet has done more than I did during this exploit, and I have no other way to make sure those funds are put to good use.”
After the hacker's offer, X was flooded with a wave of fake normie posts, announcing the relaunch of the new token. These posts are meant to trick people into clicking on scam links.
More than 72,000 Normi owners have been affected by the smart contract exploit, which was first discovered in March, in a May 26 X post by Chain Analytics Fast Intel.
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The Memecoin season continues by sending Pepe to a new all-time high
Despite the tragic incident, memecoin traders did not pay attention as they continued to buy animal-oriented cryptocurrencies.
Frog-themed memecoin Pepe (PEPE) reached a high of $0.00001718 on May 27 after surging more than 75% in the past week, CoinMarketCap data shows.
Because memecoins have no intrinsic utility, they are among the most volatile digital assets. Despite the inherent risks, some traders are making millions by successfully navigating this high-risk market segment.
Two weeks ago, a savvy Pepe trader turned $3,000 into $46 million by trading memecoin. The return of the GameStop saga boosted Pepe's value, and the retailer made a return of more than 15,718 times its original investment.
Magazine: Trader Turns $3K to $46M in PEPE, Ethereum Gas Shift, Tornado dev Guilty: Hodler Digest, May 12-18
