The Pond0X decentralized exchange (DEX) has recently achieved a major milestone, surpassing $100 million in total trading volume. This news was announced through Pond0X’s official social media channel on September 28. Despite the impressive growth, it is crucial to note that the DEX is not without its controversies. During the launch of its native token, PNDX, investors incurred losses exceeding $2 million due to a flaw that allowed anyone to transfer the token without the owner’s consent. However, supporters argue that the blame should not be solely attributed to the developer.
To substantiate the claim of Pond0X’s trading volume, the official channel referred to a Dune dashboard created by a user named Mogie. According to the dashboard, the DEX has recorded over $111 million in all-time trading volume as of September 29. This data provides concrete evidence of the platform’s popularity and robust user activity.
The controversy surrounding the PNDX token dates back to its launch on July 28. Critics swiftly accused the project of being a “rug pull” or an exit scam. The primary concern arose from the unconventional manner in which the project’s founder, Jeremy Cahen (also known as “Pauly”), initiated the coin’s release. Cahen posted the URL to an app on X (formerly Twitter), enabling individuals to deposit a fixed amount of Ether (ETH) in exchange for a fixed amount of PNDX. Additionally, he disclosed the contract address for the token.
In response, some investors purchased the coin on Uniswap using the contract address, while others deposited ETH into the app to receive PNDX. The price of PNDX on Uniswap quickly surpassed the value of the ETH required for minting, prompting minters to sell their coins at a profit on the market. Critics argued that this process effectively transferred over $2 million from those who bought PNDX on Uniswap to those who minted it through the app. Furthermore, the ETH deposited through the app was trapped within a contract that lacked any means of reclaiming the funds. This led skeptics to speculate that the project was intentionally designed to drain funds from investors and funnel them to Cahen.
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Adding fuel to the fire, coding experts highlighted a critical flaw in the token’s functionality. Instead of restricting token transfers to the owner alone, PNDX allowed anyone, including programmers with developer tools, to transfer the tokens. This flaw exposed PNDX owners to the risk of losing their tokens without warning. On July 29, Sm-stack, a Solidity enthusiast and blogger, conducted a test in Foundry that affirmed this vulnerability.
Despite these controversies, Pond0X has managed to cultivate a loyal following on Twitter. With hundreds of supporters regularly lauding the DEX’s performance, comments such as “FEELS GOOD MAN” and “Best DEX, don’t see a reason for people to use other tbh” are common responses to official posts.
Antony Williams, a cryptocurrency trader and blogger, delved into the intricacies of the app’s smart contract code on July 29. Williams concluded that Pond0X is fundamentally an LP Farm, asserting that it is not a complete scam. The app assigns each user an ID, determining their share of a pool of Pepe (PEPE) tokens. By invoking the “BribeforLevelUp” function, users can increase their entitlement to Pepe rewards. However, to initiate this function, users are required to deposit 0.26 ETH, which is then used to purchase Pepe tokens that contribute to the rewards pool. The exchange also assigns a “Score” to each user, wherein a higher score denotes greater potential rewards from trading fees.
While Williams did not confirm that these rewards could be immediately claimed, he speculated that the developer likely intends to distribute them in the future. He also suggested that the PNDX token holds minimal value, potentially to avoid legal complications.
On September 1, Pond0X successfully launched its decentralized exchange. The Dune dashboard mentioned earlier confirms that the DEX has notched over $100 million in trading volume, indicating that the Pond0X critics have not deterred traders from using the platform.
In conclusion, Pond0X has achieved a significant milestone by surpassing $100 million in total trading volume on its decentralized exchange. Despite the initial setbacks and controversies surrounding the PNDX token launch, the platform has garnered a substantial user base and maintained an active trading ecosystem. This achievement highlights the resilience and growing popularity of Pond0X in the decentralized finance (DeFi) landscape.
