The Pond0X decentralized exchange (DEX) has recently achieved a significant milestone, surpassing $100 million in total trading volume. This achievement was highlighted in a social media post from the official channel on September 28th. The post shared the news of the milestone and expressed anticipation for what comes next for Pond0X.
This success comes after a rocky start for the exchange’s native token, PNDX. During its initial launch, investors faced losses of over $2 million due to a functionality in PNDX that allowed anyone to transfer the token without the owner’s permission. However, supporters of Pond0X argue that the developer cannot be blamed for these losses.
To validate the reported trading volume, the official channel referenced a Dune dashboard created by a user named Mogie. As of September 29th, the Dune dashboard showed over $111 million in all-time trading volume for Pond0X. This serves as evidence supporting the exchange’s growth and popularity.
The launch of the PNDX token on July 28th faced criticism and allegations of being a rug pull or an exit scam. The controversy stemmed from the unconventional approach taken by Jeremy Cahen, the project’s founder, also known as “Pauly.” Cahen shared the URL to an app that allowed users to deposit a fixed amount of Ether (ETH) and receive a fixed amount of PNDX. Additionally, he revealed the contract address for the token.
Some investors started buying PNDX on Uniswap, using the contract address to identify it, while others deposited ETH into the app to obtain PNDX. The price of PNDX on Uniswap quickly increased beyond the value of the ETH required to mint PNDX, prompting minters to sell their coins for a profit. Critics argued that this process shifted over $2 million from those who bought the coin on Uniswap to those who minted it using the app. They claimed that the project intended to drain funds from investors and redirect them to Cahen.
Another concern raised by coding experts was the absence of a normal transfer function in the PNDX token. Unlike other tokens that only allow the owner to transfer them, PNDX enabled anyone to transfer tokens. Consequently, PNDX owners faced the risk of losing their tokens, as any programmer could “steal” them using developer tools. This flaw was demonstrated by Solidity enthusiast and blogger Sm-stack, who conducted a test in Foundry proving the vulnerability.
Despite these controversies surrounding Pond0X and PNDX, the project has continued to gain supporters on social media, particularly on Twitter. Replies to official posts consistently express positive sentiments, with users praising Pond0X as the best DEX and asserting that there is no reason to use other platforms.
Antony Williams, a crypto trader and blogger, delved into the app’s smart contract code and offered insights into its functionality. According to Williams, Pond0X is fundamentally an LP (liquidity provider) Farm rather than a complete scam. The app assigns each user an ID that determines their share of a pool of Pepe (PEPE) tokens. Users can increase their entitlement to Pepe rewards by executing the “BribeforLevelUp” function, which requires a deposit of 0.26 ETH. This ETH is then used to purchase Pepe tokens and contribute them to the reward pool. Additionally, the exchange assigns a “Score” to each user, with higher scores indicating greater potential rewards from trading fees.
Williams clarified that these rewards may not be immediately claimable but suggested that the developer likely intends to distribute them in the future. He also noted that the PNDX token is essentially valueless, potentially created in this manner to avoid legal complications.
On September 1st, Pond0X launched its decentralized exchange. The Dune dashboard demonstrates that the exchange has gained considerable traction, exceeding $100 million in trading volume. This milestone indicates that despite criticisms, Pond0X has still managed to attract a substantial number of traders.
In conclusion, Pond0X has reached a notable milestone with over $100 million in trading volume on its decentralized exchange. While the launch of its native token, PNDX, faced criticism and controversy, the project has managed to maintain a dedicated following on social media. It will be interesting to see how Pond0X continues to evolve and attract traders in the future.
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