The Trouble in This Altcoin Caused Millions of Dollars in Loss!

Investors claim that the developer of Pond0x mismanaged the launch of the token. This is why they claim to have lost up to $2.2 million from their altcoin investments.

Altcoin peaked in a short time and then crashed!

The meme-coin Pond0x has caused investors to lose millions of dollars, according to numerous reports on social media. Data from the Maestro trade app shows that Pond0x (PNDX) dropped to near zero within five minutes. However, the altcoin reached a price of $0.36 before the crash.

Maestro chart of PNDX/USD at launch. Source: Maestro

The launch of Pond0x was announced on July 28 by Jeremy Cahen, founder of Not Larva Labs, known by his Twitter username “Pauly.” Note Larva Labs is the developer of the NFT trading app for CryptoPunks and a separate parody collection called CryptoPhunks. So, it is not associated with Larva Labs, the creators of CryptoPunks. In the announcement, Cahen listed the contract address for PNDX and the URL of the official web app.

On Pond0x, which came out with the PEPE image what was the problem?

The web app featured a Pepe meme chart similar to those used in successful meme-coins like Pepecoin (PEPE). The app allowed users to print new PNDX tokens in exchange for a fixed amount of Ether (ETH), similar to a pre-sale or fundraiser. However, according to the news on social media, many users expected the fundraising process to be done through Uniswap. Listing both the website and the contract address in the same post caused confusion.

Some users have increased its price by purchasing tokens on Uniswap through bot trading apps like Maestro or Unibot. Meanwhile, other users minted tokens using the web app. Later, he sold them to the market at a profit.

Altcoin investors rebelled!

Users who lost crypto complained that they lost thousands or even millions of dollars. In response to Cahen’s first post, a Pepecoin enthusiast commented, “WTH!!!! I just got screwed!!! 4 ETH ($7,484) is worth $0!!!” Another collector said, “I put in $50,000. Now it’s worth $10,” he said. Another collector said, “This is nothing. I just put in $2.5 million and now it’s 15 cents,” he replied. According to a report from meme-coin owner Rune, investors lost over $2.2 million at launch.

Another user reported that PNDX has a faulty transfer function that allows users to transfer coins from any other user. Blockchain data shows that the transfer function is unusual for the altcoin. Instead of containing a line of code that updates the user’s balance, it calls a separate “brutalized_” function.

The code of the transfer function in the PNDX token contract. Source: Etherscan

The developer claims to indemnify the damage

About two hours after the initial posting, Rune submitted an updated report stating that a new version of PNDX was created by the person withdrawing money from investors. According to Rune, the new project will provide a “dashboard” for compensating victims through a “community cryptocurrency.”

Meme-coins remain popular in the market

Cryptocurrencies associated with meme-coins or a viral internet image or video first came to the fore with the launch of Dogecoin in 2013. It remains popular today. cryptocoin.com As we reported, on June 7, the price of several US Securities and Exchange Commission-themed meme-coins surged after the US Securities and Exchange Commission sued Coinbase and Binance crypto exchanges. On July 27, the US House of Representatives held a hearing on UFOs. Just at this time, some developers created a lot of alien-themed meme-coins. They then promoted them on social media.