The Pond0X decentralized change (DEX) has reached greater than $100 million in complete trading volume, in accordance with a Sept. 28 social media submit from its official channel. Traders beforehand misplaced over $2 million in the launch of the change’s native token, PNDX, when it turned out to have a perform that allowed anybody to switch it with out the proprietor’s permission. However supporters declare these losses weren’t the fault of the developer.
$108,000,000 Commerce Volume ✅
And counting.
What comes subsequent…?
— Pond Coin (@Pond0x) September 28, 2023
As proof for the Pond0X’s trading volume, the official channel cited a Dune dashboard created by consumer Mogie, which shows over $111 million in all-time trading volume as of Sept. 29.
The PNDX token launched on July 28. On the time, critics accused the project of being a rug pull or exit scam. At subject was the unorthodox approach that the undertaking’s founder, Jeremy Cahen (additionally identified as “Pauly”), launched the coin. Within the launch submit on X (previously Twitter), Cahen posted the URL to an app that allowed folks to deposit a fastened quantity of Ether (ETH) to obtain a fastened quantity of PNDX. He additionally posted the contract deal with for the token.
In response, some traders began shopping for the coin on Uniswap, utilizing its contract deal with to establish it, whereas others deposited ETH into the app to obtain PNDX. The value on Uniswap rapidly rose above that of the ETH wanted to mint PNDX, so minters began promoting their cash into the market at a revenue. Critics claimed that this course of transferred over $2 million of wealth from those that purchased the coin on Uniswap to those that minted it utilizing the app. The ETH deposited via the app went into a contract that contained no technique of reclaiming the funds, main critics to allege that the entire undertaking was supposed to empty funds from traders and ship them to Cahen.
As well as, coding consultants started claiming that the token lacked a regular switch perform. As an alternative of solely permitting the token proprietor to switch it, PNDX allowed anybody to switch tokens. This meant that every PNDX proprietor might lose their tokens at any second, since any programmer might “steal” their PNDX utilizing developer instruments. On July 29, Solidity fanatic and blogger Sm-stack claimed they ran a take a look at in Foundry that proved this level.
Nevertheless, greater than two months after the undertaking’s launch, it continues to garner tons of of supporters on Twitter, with replies to official posts routinely saying such issues as “FEELS GOOD MAN” and “Greatest DEX, don’t see a cause for folks to make use of different tbh.”
Greatest DEX, don’t see a cause for folks to make use of different tbh
— Lemur (@OGLemur) September 28, 2023
On July 29, crypto dealer and blogger Antony Williams claimed to have learn the app’s sensible contract code and decided the way it works. In accordance with him, Pond0x is “basically an LP Farm” and never a full scam. The app points every consumer an ID that determines the consumer’s share of a pool of Pepe (PEPE) tokens. Customers can improve the Pepe rewards they’re entitled to by calling the “BribeforLevelUp” perform. To name this perform, the consumer should deposit 0.26 ETH. This ETH is used to buy Pepe tokens, which then get deposited into the pool to pay out rewards. The change additionally points a “Rating” to every consumer. Larger scores symbolize extra potential rewards from trading charges collected, all different elements being held fixed.
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Williams didn’t say these rewards may very well be claimed instantly however asserted that the developer “possible” intends to pay them out in some unspecified time in the future in the long run. He additionally claims that the PNDX token “is actually worthless,” which can have been created in this manner “to keep away from authorized problems.”
The undertaking launched its decentralized change on Sept. 1. In accordance with the Dune dashboard cited above, the DEX has now reached over $100 million in trading volume, exhibiting that at the least some merchants are undeterred by Pond0X criticism.
