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Pond0x DEX achieves $100M trading volume while facing scam allegations.

On September 28, the official channel of Pond0X decentralized exchange (DEX) announced that it has surpassed $100 million in total trading volume.

However, it’s worth noting that during the launch of the exchange’s native token, PNDX, investors faced losses exceeding $2 million.

This was attributed to the token having a transfer function that enabled anyone to transfer it without the owner’s permission.

Despite these losses, supporters of Pond0X argue that the developer should not be held responsible for the incident.

On September 29, the official channel of Pond0X DEX presented evidence of its trading volume by referencing a Dune dashboard developed by user mogie.

The dashboard reveals an all-time trading volume exceeding $111 million.

This serves as a testament to the market activity and engagement on the platform.

Total volume metric for Pond0X.
Total volume metric for Pond0X.

On July 28, the PNDX token was launched, triggering accusations from critics who claimed it to be a “rug-pull” or exit scam.

The controversy revolved around the unconventional approach taken by the project’s founder, Jeremy Cahen, also known as “Pauly,” during the coin’s launch.

Cahen shared a URL on X (formerly Twitter) that directed users to an app enabling them to deposit a fixed amount of Ether in exchange for a fixed quantity of PNDX.

The contract address for the token was also provided.

In response, some investors began purchasing the coin on Uniswap using the contract address as identification, while others deposited ETH into the app to acquire PNDX.

The price of PNDX on Uniswap quickly surpassed the value of ETH required to mint it, prompting minters to sell their coins at a profit.

Critics alleged that this process resulted in a transfer of over $2 million from buyers on Uniswap to those who minted the coin via the app.

Furthermore, the contract locked the deposited ETH without providing any means for retrieval, which aroused suspicions that the project aimed to drain funds from investors and redirect them to Cahen.

Following its launch, concerns arose among coding experts regarding the unusual transfer function of the PNDX token.

Instead of restricting transfers solely to token owners, PNDX allowed anyone to transfer tokens, leaving each owner vulnerable to potential loss as any programmer could exploit this using developer tools.

On July 29, a Solidity enthusiast and blogger named sm-stack claimed to have conducted a test in Foundry to validate this vulnerability.

Despite these issues, the project has continued to gain support on Twitter, with hundreds of supporters expressing their satisfaction.

Replies to official posts consistently include comments such as “FEELS GOOD MAN” and “Best DEX, don’t see a reason for people to use other tbh.”

This ongoing support indicates that despite the criticisms and concerns, there remains a dedicated and optimistic user base for the project.

Pond0x Analysis: Insights into LP Farm Structure, Pepe Token Rewards, and Trading Volume Milestone

On July 29, Antony Williams, a crypto trader and blogger, analyzed the smart contract code of the Pond0x app and shared his findings.

Williams concluded that Pond0x is primarily an LP Farm rather than a complete scam.

The app assigns each user an ID, determining their share of Pepe (PEPE) tokens in a pool.

Users can enhance their entitlement to Pepe rewards by utilizing the “BribeforLevelUp” function, which requires a deposit of 0.26 ETH.

Users then use this ETH to buy Pepe tokens, which they subsequently deposit into the pool for distributing rewards.

Additionally, the exchange assigns a “Score” to each user, with higher scores indicating greater potential rewards from collected trading fees, all else being equal.

Williams did not explicitly state immediate claimability of these rewards, but he suggested that the developer likely intends to distribute them in the future.

He also noted that the PNDX token holds little value, potentially designed this way to avoid legal complications.

Pond0x project launched its decentralized exchange on September 1.

As indicated by the aforementioned Dune dashboard, the DEX has now surpassed $100 million in trading volume, signifying that certain traders remain undeterred by criticisms surrounding Pond0x.

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