Decentralized Exchange Pond0x Surpasses $100 Million in Trading Volume Despite Scam Allegations
The decentralized exchange (DEX) Pond0x has achieved a significant milestone by surpassing $100 million in total trading volume, according to reports. This achievement is notable considering the scam allegations surrounding the exchange’s native token, PNDX.
The controversy began when Pond0x launched the PNDX token on July 28. Founder Jeremy Cahen, also known as “Pauly,” faced accusations of conducting a rug pull or exit scam. Critics were concerned about the unconventional method of launching the coin and accused Cahen of draining funds from investors for personal gain.
Pond0x’s Unconventional Launch Process Raises Concerns
Cahen shared an app URL on X (formerly Twitter), allowing users to deposit a fixed amount of Ethereum (ETH) in exchange for a fixed amount of PNDX. The contract address for the token was also provided. Some investors purchased PNDX on Uniswap using its contract address, while others deposited ETH into the app to receive PNDX.
However, critics argued that the price of PNDX on Uniswap quickly exceeded the value of the ETH required to mint PNDX. Minters took advantage of this and sold their coins on the market for a profit, resulting in over $2 million being transferred from Uniswap buyers to those who minted it using the app.
Concerns About PNDX Token Vulnerabilities
Coding experts raised concerns about the lack of a normal transfer function in the PNDX token. Instead of restricting transfers to the owner, anyone could transfer tokens, making PNDX owners vulnerable to potential theft by programmers using developer tools.
In a test conducted by Solidity enthusiast Sm-stack, a vulnerability in the token was identified. Despite these issues, Pond0x continues to attract supporters on Twitter, with some defending the project’s legitimacy.
Positive Sentiments and LP Farming
Antony Williams, a crypto trader and blogger, examined the smart contract code of the app and concluded that Pond0x is fundamentally an LP Farm rather than a complete scam. The app assigns users an ID, determining their share of a pool of Pepe tokens. Users can increase their rewards by depositing ETH and purchasing Pepe tokens.
Williams believes that the developer intends to distribute rewards in the future and suggests that the PNDX token may have been created to avoid legal complications.
Hot Take: Pond0x Overcomes Controversy to Reach Impressive Trading Milestone
Pond0x’s achievement of surpassing $100 million in trading volume despite scam allegations demonstrates resilience and growing support for the decentralized exchange. Despite concerns about the launch process and vulnerabilities in the PNDX token, there are still individuals who believe in the project’s legitimacy.
While caution is advised when dealing with any investment, it is essential to conduct thorough research and understand the risks involved before participating in decentralized exchanges like Pond0x.
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