{"id":67141,"date":"2023-09-30T05:17:23","date_gmt":"2023-09-30T09:17:23","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/pond0x-dex-touts-100m-volume-amidst-scam-allegations\/"},"modified":"2023-09-30T05:17:26","modified_gmt":"2023-09-30T09:17:26","slug":"pond0x-dex-touts-100m-volume-amidst-scam-allegations","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=67141","title":{"rendered":"Pond0x DEX Touts $100M Volume Amidst Scam Allegations"},"content":{"rendered":"
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Decentralized exchange (DEX)\u00a0Pond0x<\/strong>\u00a0has reportedly achieved a total trading volume exceeding $100 million despite scam allegations.<\/p>\n

In a recent post on X (formerly Twitter), the project’s official channel referred to a\u00a0Dune<\/strong>\u00a0dashboard that displayed over $111 million in all-time trading volume as of September 29.<\/p>\n

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As of now, the dashboard shows a total trading volume of\u00a0$112.4 million.\u00a0<\/p>\n

Pond0x’s latest milestone comes despite concerns and allegations of scams surrounding the launch of the exchange’s native token,\u00a0PNDX<\/strong>.<\/p>\n

The controversy began when the project launched the PNDX token on July 28.\u00a0<\/p>\n

Critics accused the project, led by founder\u00a0Jeremy Cahen<\/strong>\u00a0(also known as “Pauly”), of being a rug pull or exit scam.\u00a0<\/p>\n

The concerns centered around the unconventional manner in which Cahen launched the coin.\u00a0<\/p>\n

In a post on X (formerly Twitter), Cahen shared the URL to an app that allowed users to deposit a fixed amount of\u00a0Ethereum (ETH)\u00a0in exchange for a fixed amount of PNDX.\u00a0<\/p>\n

He also provided the contract address for the token.<\/p>\n

In response, some investors purchased the coin on Uniswap using its contract address, while others deposited ETH into the app to receive PNDX.\u00a0<\/p>\n

Investors Lose $2M in PNDX<\/h2>\n

The price of PNDX on Uniswap quickly surpassed the value of the ETH required to mint PNDX, prompting minters to sell their coins on the market for a profit.\u00a0<\/p>\n

Critics argued that this process transferred over $2 million from those who bought the coin on Uniswap to those who minted it using the app.\u00a0<\/p>\n

The ETH deposited through the app went into a contract without any means of reclaiming the funds, leading to allegations that the project was designed to drain funds from investors and benefit Cahen.<\/p>\n

Furthermore, coding experts raised concerns about the token’s lack of a normal transfer function.<\/p>\n

Instead of limiting token transfers to the owner, PNDX allowed anyone to transfer tokens.\u00a0<\/p>\n

This meant that PNDX owners were at risk of losing their tokens at any moment, as any programmer could “steal” their PNDX using developer tools.\u00a0<\/p>\n

On July 29, Solidity enthusiast and blogger Sm-stack claimed to have conducted a test in Foundry that proved this vulnerability.<\/p>\n

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Despite these issues, Pond0x continues to attract a significant number of supporters on Twitter, with some expressing positive sentiments about the project.<\/p>\n

For one, crypto trader and blogger Antony Williams<\/strong>, who claimed to have examined the smart contract code of the app, stated that Pond0x is fundamentally an LP Farm and not a complete scam.\u00a0<\/p>\n

The app assigns each user an ID, which determines their share of a pool of Pepe tokens. Users can increase their Pepe rewards by calling the “BribeforLevelUp” function, requiring a deposit of 0.26 ETH.\u00a0<\/p>\n

This ETH is used to purchase Pepe tokens, which are then added to the pool for rewards.\u00a0<\/p>\n

The exchange also assigns a “Score” to each user, representing their potential rewards from trading fees.<\/p>\n

Williams noted that these rewards may not be immediately claimable, but he believes the developer likely intends to distribute them in the future.\u00a0<\/p>\n

He also suggested that the PNDX token itself is essentially valueless, possibly created in this manner to avoid legal complications.<\/p>\n<\/p><\/div>\n