The launch of memecoin Pond0x (PNDX) has led to tens of millions of {dollars} in losses for buyers, based on a number of reviews on social media on July 28. Knowledge 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.
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 referred to as “CryptoPhunks.” It isn’t related to Larva Labs, the creators of CryptoPunks.
Within the announcement, Pauly listed the contract handle for PNDX and the URL for its official net app.
Welcome To Pond0x https://t.co/iSiwpRDrix • $PNDX
Contract: 0x1d4214081985ad20aa3ca93a2206ae792635cbec
— PAULY (@Pauly0x) July 28, 2023
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 set quantity of Ether (ETH), just like a presale or fundraise. Nevertheless, many customers anticipated the fundraise to be finished on Uniswap, and the itemizing of each the web site and the contract handle in the identical submit triggered confusion, based on social media reviews.
Associated: Meme coin value predictions 2023 in contrast: Pepe Coin, Thug Life, and extra
Some customers bought the token on Uniswap via bot buying and selling apps like Maestrobots or Group Unibot, rising its value. In the meantime, different customers minted tokens utilizing the online app and bought them into the market at a revenue.
Customers who misplaced crypto complained they’d misplaced 1000’s and even tens of millions of {dollars}. In reply to Pauly’s preliminary submit, one PepeCoin fanatic complained “WTH !!!! I simply obtained wrecked !!! 4eth [$7,484] value like $0 !!” One other collector acknowledged, “I put $50,000 and now it’s value $10 {dollars},” which provoked yet one more collector to answer “That’s nothing, I simply aped 2.5 million {dollars} and it’s 169057474215 cents.”
In accordance with a report from memecoin holder RuneCrypto, buyers misplaced over $2.2 million within the launch.
Pauly time rugged for per week, and fucked up so exhausting that close to everybody misplaced cash in $PNDX
He pasted a contract and a web site. On the web site folks may mint tokens, however it was like a presale. Some random dude added liquidity proper after minting, and everybody began shopping for… pic.twitter.com/iETfmRpVXn
— Rune (@RuneCrypto_) July 28, 2023
One other consumer reported that PNDX has a defective switch perform that permits customers to switch cash from another consumer. Blockchain information exhibits that the switch perform for the coin is uncommon. As an alternative of containing a line of code that updates the consumer’s steadiness, 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 submit, RuneCrypto supplied an up to date report that acknowledged a brand new model of PNDX is being created by the one who initially drained the cash from buyers. In accordance with them, the brand new venture will present a “dashboard” to compensate victims via 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 right this moment.
On June 7, a number of U.S. Securities and Alternate Fee (SEC)-themed memecoins surged in value 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.
