The official channel provided evidence of Pond0X’s trading activity by sharing a Dune dashboard created by user Mogie. This dashboard displayed a total trading volume of over $111 million as of September 29.
Back on July 28th, the introduction of the PNDX token sparked mixed reactions. Some were skeptical, thinking it might be a hoax or an attempt to evade something. The controversy centered around the unconventional launch of the coin, which was orchestrated by the project’s creator, Jeremy Cahen, also known as “Pauly.” Cahen announced the launch on X (formerly Twitter) and provided a URL for an app that facilitated the exchange of a specific amount of Ether for PNDX. He also shared the token contract address.
As a result, some investors started purchasing PNDX on Uniswap using the coin’s contract address, while others deposited ETH into the app to receive PNDX in return. Minting PNDX became profitable once its price on Uniswap exceeded the cost of ETH required for its creation. Critics argued that the app’s miners gained access to over $2 million in wealth from Uniswap buyers, suggesting that the whole concept was designed to scam investors and channel funds to Cahen since the ETH deposited through the app had no means of retrieval.
Computer programming experts also raised concerns about the token’s lack of a standard transfer function. PNDX tokens could be transferred between users without the owner’s involvement, potentially exposing owners to the risk of losing their tokens. On July 29, blogger and self-proclaimed Solidity expert Sm-stack conducted a test in Foundry that confirmed this vulnerability.
Despite the project being relatively new, it has gained a significant following on Twitter, with hundreds of users regularly retweeting official messages and expressing their satisfaction with comments like “FEELS GOOD MAN” and “Best DEX, don’t see a reason for people to use other tbh.”
Antony Williams, a cryptocurrency dealer and writer, reportedly deciphered the app’s smart contract code on July 29. According to his analysis, Pond0x is fundamentally an LP Farm and not a complete scam. Each user receives a unique ID from the app, which determines the allocation of Pepe tokens. Users can increase their Pepe rewards by using the “BribeforLevelUp” function, which requires a payment of 0.26 ETH. This ETH is used to acquire Pepe tokens for distributing incentives. The trading platform also assigns a “Score” to each user, indicating the potential payoff from trading fees earned.
Additionally, the creator of the BALD token has denied allegations of price manipulation when the token’s value dropped by 85% immediately after its release.
Williams could not provide a specific timeframe for when these incentives would be available to participants, but he suggested that the developer likely intends to do so. He further proposed that the PNDX token was designed to be worthless in order to avoid legal complications.
On September 1st, the project introduced a decentralized currency exchange. The mentioned Dune dashboard confirms that the DEX’s trading volume has exceeded $100 million, demonstrating that some investors remain unaffected by the criticism directed at Pond0X.