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Pond0X token launch snafu results in tens of millions of {dollars} in losses


The launch of memecoin Pond0x (PNDX) has led to tens of millions of {dollars} in losses for traders, in response to a number of stories on social media on July 28. Knowledge from the Maestrobots buying and selling app exhibits that the token reached a worth of $0.36 earlier than collapsing to close zero in a span of 5 minutes.

Maestrobots chart of PNDX/USD throughout its launch. Supply: Maestrobots.

The launch of Pond0x was introduced on July 28 by pseudonymous Not Larva Labs founder “Pauly,” who is thought solely by his X username. Not Larva Labs is the developer of an NFT buying and selling app for CryptoPunks and for a separate parody assortment referred to as “CryptoPhunks.” It’s not related to Larva Labs, the creators of CryptoPunks.

Within the announcement, Pauly listed the contract handle for PNDX and the URL for its official internet app.

The net app contained a Pepe meme graphic, just like those utilized in profitable memecoins like PepeCoin. The app allowed customers to mint new PNDX tokens in trade for a set quantity of Ether (ETH), just like a presale or fundraise. Nevertheless, many customers anticipated the fundraise to be completed on Uniswap, and the itemizing of each the web site and the contract handle in the identical submit prompted confusion, in response to social media stories.

Associated: Meme coin worth predictions 2023 in contrast: Pepe Coin, Thug Life, and extra

Some customers bought the token on Uniswap by bot buying and selling apps like Maestrobots or Crew Unibot, growing its worth. In the meantime, different customers minted tokens utilizing the net app and bought them into the market at a revenue.

Customers who misplaced crypto complained that they had misplaced hundreds and even tens of millions of {dollars}. In reply to Pauly’s preliminary submit, one PepeCoin fanatic complained “WTH !!!! I simply obtained wrecked !!! 4eth [$7,484] value like $0 !!” One other collector said, “I put $50,000 and now it’s value $10 {dollars},” which provoked one more collector to answer “That’s nothing, I simply aped 2.5 million {dollars} and it’s 169057522915 cents.”

In line with a report from memecoin holder RuneCrypto, traders misplaced over $2.2 million within the launch.

One other consumer reported that PNDX has a defective switch operate that enables customers to switch cash from every other consumer. Blockchain knowledge exhibits that the switch operate for the coin is uncommon. As a substitute of containing a line of code that updates the consumer’s steadiness, it calls a separate “brutalized_” operate.

Cointelegraph couldn’t decide the impact of the brutalized_ operate by the point of publication.

About two hours after their preliminary submit, RuneCrypto supplied an up to date report that said a brand new model of PNDX is being created by the one who initially drained the cash from traders. In line with them, the brand new venture will present a “dashboard” to compensate victims by a “group coin.”

Memecoins, or cash related to a viral web picture or video, first got here to prominence with the launch of Dogecoin (DOGE) in 2013. They continue to be common as we speak. 

On June 7, a number of U.S. Securities and Trade Fee (SEC)-themed memecoins surged in worth after the company sued crypto exchanges Coinbase and Binance. On July 27, a number of alien-themed memecoins had been created and promoted on social media throughout a U.S. Home of Representatives listening to on unidentified flying objects.