Multi-Million Dollar Losses Reported as Memecoin Pond0x (PNDX) Launch Ends in Chaos

Multi-Million Dollar Losses Reported as Memecoin Pond0x (PNDX) Launch Ends in Chaos

The debut of Pond0x (PNDX), a memecoin, has resulted in substantial financial losses for investors, with numerous reports surfacing on social media on July 28. According to data from the Maestro trading app, the PNDX token initially surged to $0.36 before experiencing a catastrophic collapse to near worthlessness within just five minutes.

On July 28, Jeremy Cahen, widely recognized by his Twitter handle “Pauly,” and the founder of Not Larva Labs (unaffiliated with CryptoPunks’ creators, Larva Labs), announced the launch of Pond0x. Cahen disclosed the contract address for PNDX and the URL of its official web app in the announcement.

The web app featured a Pepe meme graphic, reminiscent of successful memecoins like Pepecoin. It offered users the opportunity to mint new PNDX tokens in exchange for a fixed amount of Ether, similar to a presale or fundraiser. However, confusion ensued as many users anticipated the fundraiser to take place on Uniswap. This confusion arose due to both the website and contract address being listed together in the same post, as reported on social media.

Some users utilized bot trading apps like Maestro or Unibot to purchase the token on Uniswap, thereby driving up its price. Simultaneously, other users minted PNDX tokens via the web app and swiftly sold them on the market for a profit.

Numerous investors expressed dismay over significant losses, some even claiming to have lost thousands or millions of dollars. One disappointed Pepecoin enthusiast lamented, “WTH !!!! I just got wrecked !!! 4eth [$7,484] worth like $0 !!” Another collector reported, “I put $50,000 and now it’s worth $10 dollars,” prompting yet another collector to respond, “That’s nothing, I just aped 2.5 million dollars and it’s [now]15 cents.”

A report by memecoin holder Rune suggested that investors suffered losses exceeding $2.2 million during the launch.

In addition to these issues, a user discovered a flaw in PNDX’s transfer function, enabling users to transfer coins from any other user. Notably, blockchain data indicated an unusual transfer function for the coin, as it invoked a separate “brutalized_” function instead of updating the user’s balance through standard code.

As of the time of publication, Cointelegraph was unable to ascertain the implications of the “brutalized_” function.

Approximately two hours after Cahen’s initial post, Rune provided an update stating that the individual responsible for draining funds from investors was working on a new version of PNDX. This new iteration aims to introduce a “dashboard” to compensate victims through a “community coin.”

Memecoins, connected to viral internet images or videos, first gained prominence with the introduction of Dogecoin in 2013 and remain popular to this day.

Recently, on June 7, several U.S. Securities and Exchange Commission-themed memecoins experienced price surges following the agency’s lawsuit against crypto exchanges Coinbase and Binance. Similarly, on July 27, numerous alien-themed memecoins emerged and gained traction on social media during a U.S. House of Representatives hearing on unidentified flying objects.