Pond0X token launch snafu leads to millions of dollars in losses

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The motorboat of memecoin Pond0x (PNDX) has led to millions of dollars successful losses for investors, according to aggregate reports connected societal media connected July 28. Data from the Maestrobots trading app shows that the token reached a terms of $0.36 earlier collapsing to adjacent zero successful a span of 5 minutes.

Maestrobots illustration of PNDX/USD during its launch. Source: Maestrobots.

The motorboat of Pond0x was announced connected July 28 by pseudonymous Not Larva Labs laminitis “Pauly,” who is known lone by his X username. Not Larva Labs is the developer of an NFT trading app for CryptoPunks and for a abstracted parody postulation called “CryptoPhunks.” It is not associated with Larva Labs, the creators of CryptoPunks.

In the announcement, Pauly listed the declaration code for PNDX and the URL for its authoritative web app.

— PAULY (@Pauly0x) July 28, 2023

The web app contained a Pepe meme graphic, akin to the ones utilized successful palmy memecoins similar PepeCoin. The app allowed users to mint caller PNDX tokens successful speech for a fixed magnitude of Ether (ETH), akin to a presale oregon fundraise. However, galore users expected the fundraise to beryllium done connected Uniswap, and the listing of some the website and the declaration code successful the aforesaid station caused confusion, according to societal media reports.

Related: Meme coin terms predictions 2023 compared: Pepe Coin, Thug Life, and more

Some users purchased the token connected Uniswap done bot trading apps similar Maestrobots oregon Team Unibot, expanding its price. Meanwhile, different users minted tokens utilizing the web app and sold them into the marketplace astatine a profit.

Users who mislaid crypto complained they had mislaid thousands oregon adjacent millions of dollars. In reply to Pauly’s archetypal post, 1 PepeCoin enthusiast complained “WTH !!!! I conscionable got wrecked !!! 4eth [$7,484] worthy similar $0 !!” Another collector stated, “I enactment $50,000 and present it’s worthy $10 dollars,” which provoked yet different collector to reply “That’s nothing, I conscionable aped 2.5 cardinal dollars and it’s [now]15 cents.”

According to a study from memecoin holder RuneCrypto, investors mislaid implicit $2.2 cardinal successful the launch.

Pauly clip rugged for a week, and fucked up truthful hard that adjacent everyone mislaid wealth successful $PNDX

He pasted a declaration and a website. On the website radical could mint tokens, but it was similar a presale. Some random dude added liquidity close aft minting, and everyone started buying… pic.twitter.com/iETfmRpVXn

— Rune (@RuneCrypto_) July 28, 2023

Another idiosyncratic reported that PNDX has a faulty transportation relation that allows users to transportation coins from immoderate different user. Blockchain information shows that the transportation relation for the coin is unusual. Instead of containing a enactment of codification that updates the user’s balance, it calls a abstracted “brutalized_” function.

Cointelegraph could not find the effect of the brutalized_ relation by the clip of publication.

About 2 hours aft their archetypal post, RuneCrypto provided an updated study that stated a caller mentation of PNDX is being created by the idiosyncratic who primitively drained the wealth from investors. According to them, the caller task volition supply a “dashboard” to compensate victims done a “community coin.”

Memecoins, oregon coins associated with a viral net representation oregon video, archetypal came to prominence with the motorboat of Dogecoin (DOGE) successful 2013. They stay fashionable today. 

On June 7, respective U.S. Securities and Exchange Commission (SEC)-themed memecoins surged successful price aft the bureau sued crypto exchanges Coinbase and Binance. On July 27, aggregate alien-themed memecoins were created and promoted connected societal media during a U.S. House of Representatives proceeding connected unidentified flying objects.

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