Pond0x DEX: $100 Million in Trading Volume Defends Against Scam Allegations
The Pond0X decentralized exchange (DEX) has made a significant impact in the crypto world, with its total trading volume surpassing $100 million as reported on its official social media channel. While there have been concerns about the platform’s legitimacy, supporters argue that previous losses incurred were not the fault of the developer.
Backing their claims with evidence, Pond0X’s official channel referred to a Dune dashboard created by user Mogie, which displays a total trading volume of over $111 million as of September 29th.
Controversy Surrounding PNDX Token Launch
The launch of the PNDX token on July 28th faced criticism and accusations of being a “rug pull” or exit scam. The main issue arose from the unorthodox launch method employed by the project’s founder, Jeremy Cahen, aka “Pauly.” In a post on X (formerly Twitter), Cahen shared a URL leading to an app, which enabled users to deposit a fixed amount of Ether (ETH) to receive a fixed amount of PNDX. He also disclosed the contract address for the token.
As a response, some investors began buying PNDX on Uniswap, utilizing its contract address for identification, while others deposited ETH into the app to acquire PNDX. The price of PNDX on Uniswap quickly surpassed the value of the ETH required to mint it, resulting in minters selling their coins at a profit. Critics argued that this process transferred over $2 million from those who purchased PNDX on Uniswap to those who minted it using the app. The ETH deposited via the app went into a contract without means of retrieving the funds, leading to allegations that the entire project was a scheme to drain investors’ funds for Cahen’s benefit.
Furthermore, coding experts highlighted that the PNDX token lacked a normal transfer function. Instead of only allowing the token owner to transfer it, PNDX permitted anyone to do so. This meant that PNDX owners were at risk of losing their tokens as any programmer could “steal” them using developer tools. On July 29th, Solidity enthusiast and blogger Sm-stack conducted a test in Foundry to demonstrate this.
However, despite these concerns, Pond0X continues to receive support on Twitter, with numerous replies to their official posts expressing satisfaction with the platform as the “Best DEX” and questioning why people would use any other exchange.
Understanding Pond0X’s Functionality
Crypto trader and blogger Antony Williams claimed to have examined the app’s smart contract code and understood its operation. According to Williams, Pond0X is fundamentally an LP Farm and not a complete scam. The app assigns each user an ID that determines their share of a pool of Pepe (PEPE) tokens. Users can increase their Pepe rewards by utilizing the “BribeforLevelUp” function, which requires a 0.26 ETH deposit. This ETH is then used to purchase Pepe tokens, which are subsequently deposited into the pool for reward distribution. The exchange also assigns a “Score” to each user, representing their potential rewards from trading fees, assuming all other factors remain constant.
Williams clarified that these rewards cannot be claimed immediately but suggested that the developer likely intends to distribute them in the future. He also stated that the PNDX token is essentially valueless, potentially designed this way to avoid legal complications.
On September 1st, Pond0X launched its decentralized exchange. As indicated by the aforementioned Dune dashboard, the DEX has achieved a trading volume of over $100 million, which showcases that many traders are not deterred by the criticisms surrounding Pond0X.
While critics raise concerns about Pond0X being a scam, it’s essential to consider both the positive and negative aspects of the project. With a notable trading volume and a dedicated community of supporters, Pond0X is an exchange that shouldn’t be dismissed outright. If you’re interested in exploring the crypto world and staying updated with the latest news, be sure to visit Uber Crypto News for a comprehensive source of information.