Memecoin Normie experienced a drastic price drop after a hacker attack, resulting in a loss exceeding 99% within a minute. Such incidents, though not uncommon, highlight the vulnerabilities in the cryptocurrency world. Hackers often exploit weaknesses in smart contracts, inflating the supply and selling newly created tokens, which depletes liquidity and crashes prices. In this instance, Normie’s market value plummeted from $40 million to just $200,000 due to a flash loan attack.
What Triggered the Hack?
Reports indicate that the attacker exploited a loophole in Normie’s contract tax mechanism, drastically increasing the token’s supply. WuBlockchain confirmed the attack, revealing the massive drop in market value and the sudden price collapse from $0.05 to nearly zero. Investors who held substantial amounts saw their investments reduced to mere cents, causing widespread financial distress.
Why Are Meme Coins Risky?
The lack of rigorous code auditing in meme coins often leaves them susceptible to such attacks. Developers, avoiding high auditing costs, miss vulnerabilities in smart contracts, leading to significant financial losses. Meme coins, known for their quick circulation, commonly reuse smart contracts from other projects, lacking thorough technical scrutiny. This negligence can lead to repeated issues, necessitating investor awareness about these inherent risks.
Practical Tips for Investors
- Prioritize investments in cryptocurrencies with audited and certified smart contracts.
- Be wary of meme coins that lack comprehensive code auditing.
- Understand the risks associated with rapid circulation and reused smart contracts.
- Stay updated with credible blockchain security reports and alerts.
By following these guidelines, investors can mitigate potential losses, although the risk can never be entirely eliminated.
Bitcoin remains stable at $69,000, while altcoins continue to show positive trends overall.