Flash Loan Attack Plunges Meme Crypto “Normie” from $40 Million to Under $200k

**Flash Loan Attack Decimates Meme Cryptocurrency “Normie”**
In a shocking turn of events, the meme cryptocurrency “Normie” saw its market value plummet from $40 million to less than $200,000. This drastic drop was the result of a flash loan attack executed on May 26, 2024, by an unidentified hacker exploiting a vulnerability in the token’s contract.
Flash loan attacks are a notorious issue within the Defi crypto sector. They involve borrowing a large amount of cryptocurrency without collateral, manipulating market prices or exploiting system flaws, and repaying the loan in a single transaction. This process occurs within seconds, leveraging the blockchain’s instantaneous transaction capability.
The attacker targeted Normie’s meme token by exploiting a loophole in the contract’s tax mechanism. By rapidly increasing the token’s supply, the attacker caused its trade price to collapse by over 99% in just a few hours. The aftermath of the attack left the Normie project in ruins, with its value decimated.
However, in a surprising turn of events, the Normie project team announced that the hacker had agreed to return 90% of the stolen funds. The team plans to use these returned funds to relaunch the project, promising compensation for affected token buyers who are urged to register for a snapshot.
The incident highlights the importance of rigorous auditing for meme cryptocurrencies, which often overlook the necessity of checking for smart contract errors due to cost concerns. This vulnerability is exacerbated by the rapid proliferation of meme coins, many of which replicate existing project codes, increasing their susceptibility to such attacks.
This attack not only underscores the challenges within the meme coin sector but also the broader issues of security and vulnerability in the cryptocurrency market.