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Pond0x DEX claims $100M in shopping and selling quantity as critics dispute it’s a scam

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The Pond0X decentralized change (DEX) has reached bigger than $100 million in total shopping and selling quantity, per a Sept. 28 social media put up from its excellent channel. Traders beforehand misplaced over $2 million within the originate of the change’s native token, PNDX, when it grew to change into out to have a honest that allowed any individual to switch it without the proprietor’s permission. But supporters claim these losses were no longer the fault of the developer.

— Pond Coin (@Pond0x) September 28, 2023

As evidence for the Pond0X’s shopping and selling quantity, the excellent channel cited a Dune dashboard created by person Mogie, which shows over $111 million in all-time shopping and selling quantity as of Sept. 29.

Total quantity metric for Pond0X. Source: Mogie/DuneThe PNDX token launched on July 28. At the time, critics accused the mission of being a rug pull or exit scam. At field used to be the unorthodox manner that the mission’s founder, Jeremy Cahen (also identified as “Pauly”), launched the coin. Within the originate put up on X (formerly Twitter), Cahen posted the URL to an app that allowed other folk to deposit a attach quantity of Ether (ETH) to receive a attach quantity of PNDX. He also posted the contract address for the token.

In response, some investors began shopping the coin on Uniswap, the employ of its contract address to title it, while others deposited ETH into the app to receive PNDX. The associated fee on Uniswap immediate rose above that of the ETH wished to mint PNDX, so minters began promoting their coins into the market at a revenue. Critics claimed that this course of transferred over $2 million of wealth from those who offered the coin on Uniswap to those who minted it the employ of the app. The ETH deposited via the app went actual into a contract that contained no approach of reclaiming the funds, main critics to dispute that the total mission used to be supposed to empty funds from investors and send them to Cahen.

As well, coding consultants began claiming that the token lacked a fashioned switch honest. As an different of handiest permitting the token proprietor to switch it, PNDX allowed any individual to switch tokens. This meant that every PNDX proprietor could lose their tokens at any 2nd, since any programmer could “seize” their PNDX the employ of 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.

On the other hand, bigger than two months after the mission’s originate, it continues to garner tons of of supporters on Twitter, with replies to excellent posts routinely announcing such things as “FEELS GOOD MAN” and “Finest DEX, don’t see a motive for oldsters to employ other tbh.”

Finest DEX, don’t see a motive for oldsters to employ other tbh

— Lemur (@OGLemur) September 28, 2023

On July 29, crypto supplier and blogger Antony Williams claimed to have read the app’s natty contract code and clear the contrivance in which it in actual fact works. In step with him, Pond0x is “fundamentally an LP Farm” and no longer a total scam. The app points one and all an ID that determines the person’s share of a pool of Pepe (PEPE) tokens. Customers can expand the Pepe rewards they’re entitled to by calling the “BribeforLevelUp” honest. To name this honest, the person need to deposit 0.26 ETH. This ETH is frail to have interaction Pepe tokens, which then to find deposited into the pool to pay out rewards. The change also points a “Ranking” to one and all. Higher scores signify more doable rewards from shopping and selling funds aloof, all other components being held constant.

Connected: BALD token developer denies rug pull as tag falls 85% put up-originate

Williams did no longer articulate these rewards can even be claimed actual now nonetheless asserted that the developer “possible” intends to pay them out at some level in due course. He also claims that the PNDX token “is principally valueless,” which may have been created in this form “to stay a ways from correct considerations.”

The mission launched its decentralized change on Sept. 1. In step with the Dune dashboard cited above, the DEX has now reached over $100 million in shopping and selling quantity, exhibiting that at the least some merchants are undeterred by Pond0X criticism.

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