The memecoin market experienced notable gains recently, yet Normie (NORMIE) encountered a severe hack that obliterated over 99% of its value in just one day. Post-hack, NORMIE’s market capitalization nosedived from $182 million to a mere $110,000 within moments.
Investor’s $1.16 Million Turns to $150
On-chain data revealed by Lookonchain highlighted the staggering loss faced by a significant investor. This individual had invested $1.16 million to acquire 11.23 million NORMIE tokens at $0.1035 each between March 25 and April 9. Following the hack, the value of these holdings plunged to less than $150. The investor did not sell any tokens, leading to an enormous financial blow.
Recovery Efforts Underway
Normie’s development team commenced negotiations with the hacker, aiming to reclaim 90% of the stolen funds. An exploit in a smart contract triggered the sharp $41.7 million decline in NORMIE’s market value within just three hours. Despite the token’s price dropping by 96%, the hacker agreed to return 90% of the stolen tokens. A recovery plan involves using both the returned funds and $2.3 million from the development wallet to issue a new token intended to compensate the affected investors.
Concrete Measures for Investors
- Immediate negotiations with the hacker to recover stolen funds show proactive crisis management.
- The plan to launch a new token aims to offer compensation, indicating a commitment to investor restitution.
- No retaliation clause in the agreement signifies the delicate nature of such negotiations.
The Normie team acknowledged the necessity for a fresh start after regaining control of their primary X accounts and securing the agreed-upon funds from the hacker. The insistence on a token relaunch by the hacker adds another layer of complexity to their recovery strategy.
Launched in March 2024, NORMIE has seen significant turmoil. Developers of the blockchain fraud detection tool Quick Intel estimate about 72,000 NORMIE holders were impacted by the identified smart contract vulnerability, stressing the critical need for robust recovery plans.