Pond0X DEX Surpasses $100 Million Trade Volume Amid Controversies
Summary:
The decentralized exchange (DEX) Pond0X has crossed $100 million in total trade volume, despite earlier controversy. The launch of its native token, PNDX, resulted in investors losing over $2 million due to a faulty transfer function. There were also claims that the token lacked a standard transfer function but the project continues to attract supporters. The DEX, launched on September 1, shows significant trade volumes suggesting the controversies have not deterred all investors.
The decentralized exchange (DEX) known as Pond0X has recently surpassed $100 million in total trade volume, as declared in a social media update on September 28. The launch of the exchange's own token, PNDX, lead to investors losing over $2 million due to a transfer feature that enabled anyone to move the coin without requiring the owner's consent. However, proponents argue these losses were not a result of the developer's actions.
Exhibiting the trading volume of Pond0X DEX, the official channel referred to a Dune dashboard, assembled by user mogie, which showed an all-time trading volume exceeding $111 million as of September 29. The PNDX token was launched on July 28. The launch was met with criticism, with some alleging it to be a scam or "rug-pull". The controversy revolved around the unconventional method by which the coin's founder, Jeremy Cahen (aka “Pauly”), launched the coin.
In the token's launch announcement, Cahen published a URL for an app that allowed users to deposit a set quantity of Ether (ETH) and receive a predefined amount of PNDX. He also provided the contract address for the token. Consequently, some investors began acquiring the coin on Uniswap via its contract address, while others deposited ETH into the app to receive PNDX. The price on Uniswap quickly escalated above the ETH required to mint PNDX, leading minters to sell their coins on the market at a higher price. Critics argue that this method resulted in wealth transfer of over $2 million from those who purchased the coin on Uniswap to those who minted it using the app. Meanwhile, the ETH submitted through the app was moved to a contract that had no option for refunding the funds, leading critics to accuse the entire project of being a means to extract funds from investors for Cahen's benefit.
The token was marred by further controversy when coding experts found that PNDX lacked the regular transfer functionality. Instead, it granted anyone the capability to transfer tokens, leading every PNDX owner at risk of losing their tokens to any programmer who could “steal” their PNDX utilizing developer tools.
Despite these issues, the project still boasts hundreds of supporters more than two months post-launch, with social media responses frequently expressing sentiments of approval and support of the DEX.
On July 29, crypto trader and blogger Antony Williams shared his review of the app’s smart contract code. He concluded that Pond0x was essentially a 'liquidity pool (LP) Farm' and not entirely a scam. According to him, the app assigns an ID to each user which dictates their share in a pool of Pepe (PEPE) tokens, and users can enhance their Pepe rewards by invoking the "BribeforLevelUp" function. For this, the user has to deposit 0.26 ETH that is then used for buying Pepe tokens. These tokens are then added to the pool to be used as rewards. It also allots a "Score" to each user which indicates potential rewards.
Williams did not guarantee that these rewards would be available immediately, but suggested that the developer may have plans to pay them in the future. He also conjectured that the PNDX token, which he deemed valueless, might have been constructed this way to sidestep legal issues.
Despite the criticism Pond0X has faced, its decentralized exchange that was unveiled on September 1 has seen over $100 million in trading volume, indicating that some traders remain unfazed by the controversy surrounding it.
Published At
9/29/2023 7:57:55 PM
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