devastating exploit hit the Normie token on the Base blockchain. Blockchain analysts discovered that attackers had manipulated NORMIE's total supply by exploiting a "tax function" in its smart contract. This allowed them to issue far more tokens than the intended 1 billion circulating supply. With the extra tokens in hand, the attackers promptly traded them for ether, causing NORMIE's price to plummet around 99%.
From a high of over $40 million in market cap with nearly 90,000 holders, NORMIE crashed to just $700 in minutes as liquidity pools were completely emptied. Panicked investors watched helplessly as their portfolios were wrecked. The exploit marked another grim reminder of the risks involved with projects utilizing copy-paste code without thorough auditing.
A Message from the Attacker
In a surprising twist, the anonymous attacker later posted an on-chain message offering developers a chance to recover funds. They proposed returning 90% of the stolen ether worth around $2.3 million, keeping 10% as a "bug bounty". However, there was one major condition - the funds must be used to fairly relaunch NORMIE as a new token to reimburse original holders. Developers accepted the unconventional deal, hoping it could help rebuild shattered trust.
The attacker's message criticizced NORMIE's contract as a "copy-paste job" likely re-used from other projects without proper review. They believed developers simply copied code without understanding, making the eventual exploit inevitable. This incident highlighted the risks of copy-pasting without knowing what the code precisely does or whether known issues exist.
$1.6 Million Vanishes in Seconds
One NORMIE investor faced astronomical losses from the attack. Data shows they had spent over $1.16 million between March and April to accumulate a bag of 11.23 million tokens. However within moments, that entire position was wiped out - the remaining tokens were just $150. A sobering $1.6 million vanished in the blink of an eye.
While extreme, this case wasn't isolated. Many smaller holders also found their portfolios devastated, their trust in the coin broken. It is a brutal lesson that even million-dollar positions are vulnerable if underlying contracts aren't carefully scrutinized. Relying on copy-paste code is a gamble that sometimes ends in complete ruin.
A Call for Improved Smart Contract Security
The Normie incident reaffirms the need for stronger security practices in the decentralized finance sector. While copying code can speed development, it frequently propagates existing vulnerabilities with disastrous outcomes. Projects must implement comprehensive auditing and testing of all contract functionality instead. Where copies are made, any differences from the original also require the same treatment.
Attackers will continue exploiting poorly-designed contracts for profit if the status quo persists. Investors too must demand evidence that protocols have undergone rigorous review by independent auditors before risking capital. Only through improved individual and systemic diligence can the unnecessary losses seen with Normie be avoided going forward.
