The launch of memecoin Pond0x has led to millions of dollars in losses for buyers, in accordance to a number of studies on social media on July 28. Information from the Maestro buying and selling app reveals that the Pond0x (PNDX) token reached a worth of $0.36 earlier than collapsing to close to zero in a span of 5 minutes.
The launch of Pond0x was introduced on July 28 by Jeremy Cahen, the founder of Not Larva Labs who is healthier identified by his Twitter username “Pauly.” Not Larva Labs is the developer of a nonfungible token buying and selling app for CryptoPunks and for a separate parody assortment known as CryptoPhunks. It’s not related to Larva Labs, the creators of CryptoPunks.
Within the announcement, Cahen listed the contract handle for PNDX and the URL for its official internet app.
Welcome To Pond0x https://t.co/iSiwpRDrix • $PNDX
Contract: 0x1d4214081985ad20aa3ca93a2206ae792635cbec
— PAULY (@Pauly0x) July 28, 2023
The online app contained a Pepe meme graphic, related to those used in profitable memecoins like Pepecoin (PEPE). The app allowed customers to mint new PNDX tokens in trade for a set quantity of Ether (ETH), related to a presale or fundraiser. Nevertheless, many customers anticipated the fundraiser to be carried out on Uniswap, and the itemizing of each the web site and the contract handle in the identical submit brought about confusion, in accordance to social media studies.
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Some customers bought the token on Uniswap by bot buying and selling apps like Maestro or Unibot, growing its worth. In the meantime, different customers minted tokens utilizing the online app and offered them into the market at a revenue.
Customers who misplaced crypto complained that they had misplaced 1000’s and even millions of dollars. In reply to Cahen’s preliminary submit, one Pepecoin fanatic complained, “WTH !!!! I simply bought wrecked !!! 4eth [$7,484] value like $0 !!” One other collector stated, “I put $50,000 and now it’s value $10 dollars,” which provoked one more collector to reply, “That’s nothing, I simply aped 2.5 million dollars and it’s [now]15 cents.”
In accordance to a report from memecoin holder Rune, buyers misplaced over $2.2 million in the launch.
Pauly time rugged for every week, and fucked up so exhausting that close to everybody misplaced cash in $PNDX
He pasted a contract and an internet site. On the web site folks might mint tokens, nevertheless it was like a presale. Some random dude added liquidity proper after minting, and everybody began shopping for… pic.twitter.com/iETfmRpVXn
— Rune (@RuneCrypto_) July 28, 2023
One other person reported that PNDX has a defective switch operate that permits customers to switch cash from some other person. Blockchain knowledge reveals that the switch operate for the coin is uncommon. As an alternative of containing a line of code that updates the person’s steadiness, it calls a separate “brutalized_” operate.
Cointelegraph couldn’t decide the impact of the brutalized_ operate by the point of publication.
About two hours after the preliminary submit, Rune supplied an up to date report that stated a brand new model of PNDX is being created by the one that initially drained the cash from buyers. In accordance to Rune, the brand new mission will present a “dashboard” to compensate victims by a “neighborhood coin.”
Memecoins, or cash related to a viral web picture or video, first got here to prominence with the launch of Dogecoin (DOGE) in 2013. They continue to be well-liked right now.
On June 7, a number of U.S. Securities and Alternate Fee-themed memecoins surged in price after the company sued crypto exchanges Coinbase and Binance. On July 27, a number of alien-themed memecoins have been created and promoted on social media throughout a U.S. Home of Representatives listening to on unidentified flying objects.
Replace (July 29, 04:32 am UTC): This text has been up to date to disclose the identification of “Pauly” as Jeremy Cahen.
