The memecoin Normie experienced a catastrophic attack that resulted in its price plummeting by over 99% within a single minute. The market value of Normie fell from a robust $40 million to a mere $200,000. This severe decline was triggered by a significant increase in the supply of Normie tokens due to a flash loan attack that exploited a loophole in the contract’s tax mechanism.
Details of the Attack
The attacker utilized a flash loan, a sophisticated financial instrument in the DeFi space, to manipulate the Normie token’s tax mechanism. By exploiting this vulnerability, the attacker was able to flood the market with a massive supply of tokens, leading to an instantaneous crash in the token’s price.
Response from Normie
In response to the attack, the Normie team announced that they had entered into negotiations with the attacker. An agreement was reached where the attacker would return 90% of the stolen Ethereum (ETH) in exchange for being allowed to keep 10% as a reward. This recovered ETH will be used to address the fallout from the incident and assist in relaunching the project.
Despite the severity of the attack, the Normie team remains committed to relaunching the project. The returned funds will be crucial in restoring some level of stability and confidence among the community and investors. The team is likely to implement additional security measures to prevent such incidents in the future.