The Pond0X decentralized exchange (DEX) has reached more than $100 million in total trading volume, according to a Sept. 28 social media post from its official channel. Investors previously lost over $2 million in the launch of the exchange’s native token, PNDX, when it turned out to have a function that allowed anyone to transfer it without the owner’s permission. But supporters claim these losses were not the fault of the developer.
$108,000,000 Trade Volume ✅
What comes next…?
— Pond Coin (@Pond0x) September 28, 2023
As evidence for the Pond0X’s trading volume, the official channel cited a Dune dashboard created by user Mogie, which shows over $111 million in all-time trading volume as of Sept. 29.
Total volume metric for Pond0X. Source: Mogie/Dune
The PNDX token launched on July 28. At the time, critics accused the project of being a rug pull or exit scam. At issue was the unorthodox way that the project’s founder, Jeremy Cahen (also known as “Pauly”), launched the coin. In the launch post on X (formerly Twitter), Cahen posted the URL to an app that allowed people to deposit a fixed amount of Ether (ETH) to receive a fixed amount of PNDX. He also posted the contract address for the token.
In response, some investors started buying the coin on Uniswap, using its contract address to identify it, while others deposited ETH into the app to receive PNDX. The price on Uniswap quickly rose above that of the ETH needed to mint PNDX, so minters started selling their coins into the market at a profit. Critics claimed that this process transferred over $2 million of wealth from those who bought the coin on Uniswap to those who minted it using the app. The ETH deposited through the app went into a contract that contained no means of reclaiming the funds, leading critics to allege that the whole project was intended to drain funds from investors and send them to Cahen.
In addition, coding experts began claiming that the token lacked a normal transfer function….