The Pond0X decentralized trade (DEX) has reached greater than $100 million in complete trading quantity, in response to a Sept. 28 social media submit from its official channel. Traders beforehand misplaced over $2 million within the launch of the trade’s native token, PNDX, when it turned out to have a perform that allowed anybody to switch it with out the proprietor’s permission. However supporters declare these losses weren’t the fault of the developer.
$108,000,000 Commerce Quantity ✅
And counting.
What comes subsequent…?
pic.twitter.com/lpetFqJAkq
— Pond Coin (@Pond0x) September 28, 2023
As proof for the Pond0X’s trading quantity, the official channel cited a Dune dashboard created by person Mogie, which exhibits over $111 million in all-time trading quantity as of Sept. 29.
Whole quantity metric for Pond0X. Supply: Mogie/Dune
The PNDX token launched on July 28. On the time, critics accused the venture of being a rug pull or exit rip-off. At difficulty was the unorthodox manner that the venture’s founder, Jeremy Cahen (also called “Pauly”), launched the coin. Within the launch submit on X (previously Twitter), Cahen posted the URL to an app that allowed individuals to deposit a hard and fast quantity of Ether (ETH) to obtain a hard and fast quantity of PNDX. He additionally posted the contract handle for the token.
In response, some traders began shopping for the coin on Uniswap, utilizing its contract handle to determine it, whereas others deposited ETH into the app to obtain PNDX. The value on Uniswap shortly rose above that of the ETH wanted to mint PNDX, so minters began promoting their cash into the market at a revenue. Critics claimed that this course of transferred over $2 million of wealth from those that purchased the coin on Uniswap to those that minted it utilizing the app. The ETH deposited by the app went right into a contract that contained no technique of reclaiming the funds, main critics to allege that the entire venture was meant to empty funds from traders and ship them to Cahen.
As well as, coding specialists started claiming that the token lacked a traditional switch perform. As an alternative of solely permitting the token proprietor to switch it, PNDX allowed anybody to switch tokens. This meant that every PNDX proprietor may lose their tokens at any second, since any programmer may “steal” their PNDX utilizing developer instruments. On July 29, Solidity fanatic and blogger Sm-stack claimed they ran a check in Foundry that proved this level.
Nevertheless, greater than two months after the venture’s launch, it continues to garner tons of of supporters on Twitter, with replies to official posts routinely saying things like “FEELS GOOD MAN” and “Finest DEX, don’t see a cause for individuals to make use of different tbh.”
Finest DEX, don’t see a cause for individuals to make use of different tbh
— Lemur (@OGLemur) September 28, 2023
On July 29, crypto dealer and blogger Antony Williams claimed to have learn the app’s sensible contract code and decided the way it works. In line with him, Pond0x is “essentially an LP Farm” and never a whole rip-off. The app points every person an ID that determines the person’s share of a pool of Pepe (PEPE) tokens. Customers can improve the Pepe rewards they’re entitled to by calling the “BribeforLevelUp” perform. To name this perform, the person should deposit 0.26 ETH. This ETH is used to buy Pepe tokens, which then get deposited into the pool to pay out rewards. The trade additionally points a “Rating” to every person. Larger scores characterize extra potential rewards from trading charges collected, all different elements being held fixed.
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Williams didn’t say these rewards could possibly be claimed instantly however asserted that the developer “doubtless” intends to pay them out sooner or later sooner or later. He additionally claims that the PNDX token “is actually worthless,” which can have been created on this manner “to keep away from authorized problems.”
The venture launched its decentralized trade on Sept. 1. In line with the Dune dashboard cited above, the DEX has now reached over $100 million in trading quantity, exhibiting that at the very least some merchants are undeterred by Pond0X criticism.