In the dynamic DeFi world, the Pond0X decentralized exchange (DEX) has recently surfaced as a noteworthy player, surpassing the $100 million mark in total trading volume. This milestone was achieved on September 29 and was shared through an official social media announcement on September 28. However, the journey of Pond0X has not been without its share of turmoil and criticism.
A Rocky Start for Pond0X: PNDX Token Launch
The saga began on July 28, when the exchange’s native token, PNDX, was launched into the crypto market. Spearheaded by the project’s founder, Jeremy Cahen, the token debuted through a distinctive launch strategy. On X, Cahen shared a link to an app and the contract address for PNDX. This app allowed individuals to deposit a specified amount of Ether (ETH) to receive a predetermined amount of PNDX.
However, the unconventional launch mechanism soon spiraled into a whirlpool of criticism. Some investors purchased the token on Uniswap using its contract address, while others used the app to acquire PNDX. The burgeoning price of PNDX on Uniswap, compared to the ETH needed to mint it, led to a wave of minters selling their tokens on the market for a profit.
This mechanism allegedly orchestrated a wealth transfer exceeding $2 million from Uniswap buyers to the app minters. Moreover, the inability to reclaim the deposited ETH through the app raised eyebrows. It lead many to accuse the project of being a rug pull or an exit scam aimed to channel funds towards Cahen.
Technical Glitches: A Bone of Contention
Adding fuel to the fire, coding aficionados pinpointed a glaring loophole in the Pond0X token’s functionality. Unlike typical tokens, which only permit the owner to transfer them, PNDX had a bug that allowed any individual to transfer tokens, posing a severe security threat. On July 29, a Solidity devotee and blogger named Sm-stack conducted a test in Foundry. It validated this security concern, highlighting the risk of Pond0X token holders losing their tokens to any savvy programmer.
Despite the early adversities, Pond0X DEX set sail and launched its platform on September 1. The exchange has since then experienced a noteworthy uptick in trading activity, with the Dune dashboard showcasing a trading volume exceeding $100 million. It demonstrates a segment of traders undeterred by the initial hiccups and criticisms surrounding Pond0X.
Analyzing the Underbelly: Antony Williams’ Take
In a detailed analysis on July 29, crypto trader and blogger Antony Williams delved into the smart contract code of the app, unraveling its workings. He posited that Pond0X was fundamentally an LP (Liquidity Provider) Farm, as opposed to a scam. Users are assigned an ID that denotes their share in a pool of Pepe tokens.
Users could potentially augment their Pepe rewards by engaging the “BribeforLevelUp” function after a deposit of 0.26 ETH. This ETH was utilized to procure Pepe tokens, which were then deposited into the pool to disburse rewards. Additionally, the exchange attributed a “Score” to each user, with higher scores indicating greater potential rewards from collected trading fees, all else equal.
Though Williams didn’t specify the immediacy of these rewards, he envisaged that they would be disbursed in the foreseeable future. He also contended that the PNDX token was essentially valueless, possibly crafted this way to evade legal intricacies.
Please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. CryptoMode is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.