Pond0X token launch snafu results in thousands and thousands of {dollars} in losses

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The launch of memecoin Pond0x (PNDX) has led to thousands and thousands of {dollars} in losses for buyers, in keeping with a number of reviews on social media on July 28. Information from the Maestrobots buying and selling app exhibits that the token reached a value 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 understood 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 known 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 alternate for a hard and fast 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 put up triggered confusion, in keeping with social media reviews.

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Some customers bought the token on Uniswap by way of bot buying and selling apps like Maestrobots or Group Unibot, rising its value. In the meantime, different customers minted tokens utilizing the net app and offered them into the market at a revenue.

Customers who misplaced crypto complained they’d misplaced 1000’s and even thousands and thousands of {dollars}. In reply to Pauly’s preliminary put up, one PepeCoin fanatic complained “WTH !!!! I simply acquired wrecked !!! 4eth [$7,484] price like $0 !!” One other collector stated, “I put $50,000 and now it’s price $10 {dollars},” which provoked one more collector to answer “That’s nothing, I simply aped 2.5 million {dollars} and it’s [now]15 cents.”

Based on a report from memecoin holder RuneCrypto, buyers misplaced over $2.2 million within the launch.

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

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

About two hours after their preliminary put up, RuneCrypto supplied an up to date report that stated a brand new model of PNDX is being created by the one that initially drained the cash from buyers. Based on them, the brand new challenge will present a “dashboard” to compensate victims by way of a “neighborhood 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 fashionable in the present day. 

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