Decentralized exchangePond0x is making headlines in the crypto space, impressively exceeding $100 million in trading volume. An eyecatching achievement, yet the project lifts eyebrows due to swirling allegations of scam operations involving its native token, PNDX.
Looking beneath the surface of the achievement, Jeremy Cahen, also known as “Pauly”, spearheaded the project. As the details unravel, an air of unease surrounds the unconventional way the PNDX token was launched. The founder posted a URL to an app on X (formerly Twitter) that allowed users to trade a fixed amount of EthereumETH for a predetermined portion of PNDX. Simultaneously, the contract address for the token was provided.
In response to this, some investors rushed to purchase the coin on Uniswap using the contract address, and others deposited their ETH into the app hoping to acquire PNDX. As a result, when the value of PNDX on Uniswap escalated beyond the value of the required ETH for minting PNDX, minters cashed in their coins on the market for handsome profits. This process resulted in a transfer of over $2 million from Uniswap purchasers to those who minted their coins via the app.
Worryingly, the ETH amassed through the app was directed into a contract that offered no means to retrieve the funds, leading to accusations that Pond0x was skillfully designed to siphon off investments, filling Cahen’s coffers.
Further misgivings arose when coding experts detected that the PNDX token lacked a conventional transfer function. In its place, PNDX permitted anyone to transfer tokens, exposing owners to the risk of unexpected token loss. Any programmer wielding developer tools was capable of swiftly “stealing” PNDX tokens at will. Bloggers even demonstrated this vulnerability by conducting successful tests.
In spite of the storm of skepticism, Pond0x still attracts a substantial following, some of whom express optimistic views about the project. Antony Williams, a crypto trader and blogger, notes that Pond0x at its core is an LP Farm and not entirely a scam.
He goes on to explain that the associated app assigns each user an ID determining their share of a pool of Pepe tokens, with rewards increaseable via depositing 0.26 ETH. The deposited ETH is used to purchase Pepe tokens added to the pool, with potential rewards depicted by each user’s “Score”. Williams concludes the PNDX token itself holds no value and speculates it was created intentionally this way to evade legal issues. Whether Pond0x indeed constitutes an ingenious scam or a misunderstood utility remains to be seen. The question remains, is Pond0x another testament to blockchain’s bright future or an unfortunate consequence of its decentralized nature?
Source: Cryptonews
