Investor Loses $1 Million in Crypto

Investor Loses $1 Million in Crypto

A cryptocurrency investor has suffered a significant financial loss after falling victim to an attack on the memecoin project known as Normie. The individual had invested over $1.16 million in acquiring 11.23 million Normie tokens. However, according to Lookonchain's report dated May 26, the investment's value plummeted by over 99%, reducing it to a mere $150.

Normie Attack: What Happened?

Normie, a memecoin operating on the Base network, experienced a devastating smart contract breach that caused an estimated $41.7 million market value loss within three hours. Lookonchain was the first to report this incident. CoinGecko data later revealed that the value of Normie declined by over 96% in the aftermath, reaching a market cap low of approximately $200,000 before a modest recovery ensued.

Team's Response to the Hacker

On May 27, it was disclosed that the Normie team had agreed to the hacker's proposition to return 90% of the stolen tokens. The hacker stipulated that the launch of a new token to reimburse current NORMIE holders should occur before returning the funds. This agreement, as per the hacker's blockchain message, aims to ensure proper use of the developer wallet, which amassed more than what the hacker obtained during the attack.

Key Insights for Investors

• Always assess the security protocols of a cryptocurrency project before investing.
• Diversification of investments can mitigate risk exposure to any single asset.
• Stay informed about market developments and potential vulnerabilities in the crypto space.

Despite the setback with Normie, the appetite for animal-themed memecoins remains high among investors. CoinMarketCap data shows that the frog-themed memecoin Pepe reached an all-time high of $0.00001718 on May 27, rising by more than 75% in the previous week. Memecoin markets are known for their volatility and lack of inherent utility, making them high-risk investment avenues.

Nonetheless, some investors continue to reap substantial rewards within this volatile sector. For instance, a keen Pepe investor recently turned a $3,000 investment into $46 million, achieving a staggering 15,718% return. This success was partly fueled by the resurgence of the GameStop phenomenon, underscoring the unpredictable yet lucrative nature of memecoin trading.

The post first appeared on BH NEWS: Investor Loses $1 Million in Crypto