In a surprising turn of events, the decentralized exchange (DEX) Pond0X has announced a remarkable achievement, surpassing a staggering $100 million in total trading volume. This significant milestone, however, is not without its fair share of skepticism and criticism from various quarters within the cryptocurrency community. This article delves into the intricate details of these allegations, the project’s tumultuous history, and the current state of affairs.

The Launch of the PNDX Token

On July 28, Pond0X made waves in the cryptocurrency world with the launch of its native token, PNDX. The launch was met with much fanfare and anticipation. However, it was far from conventional. Jeremy Cahen, also known as “Pauly,” the project’s founder, took an unconventional approach to the token’s debut.

Cahen shared a URL to an application that allowed users to deposit a predetermined amount of Ether (ETH) in exchange for a set amount of PNDX tokens. Simultaneously, he revealed the contract address for the token. This unconventional method ignited a flurry of activity within the cryptocurrency community.

Some investors, eager to acquire the new token, began purchasing PNDX on Uniswap using its contract address. Others opted to deposit their ETH directly into the application to receive their PNDX tokens. As demand surged, the price of PNDX on Uniswap quickly outpaced the ETH required to mint the token. This price discrepancy allowed those who minted PNDX through the app to profit significantly by selling their tokens on Uniswap.

However, this process raised eyebrows and prompted critics to voice their concerns. They argued that this mechanism facilitated a transfer of over $2 million from Uniswap buyers to those who minted the token via the app. Furthermore, the ETH collected through the app was directed to a contract with no provision for retrieval, leading many to speculate that the primary objective of the project was to siphon funds from unsuspecting investors into Cahen’s pockets.

Technical Flaws and Ongoing Support

The controversies surrounding Pond0X did not end there. Shortly after the token’s launch, coding experts began highlighting a glaring flaw in the PNDX token’s design. Unlike standard tokens, which only permit the owner to transfer them, PNDX had a function that allowed any individual to transfer the tokens. This vulnerability meant that any PNDX holder was at risk of losing their tokens, as any developer with the requisite skills could potentially “steal” their holdings. A Solidity enthusiast and blogger named Sm-stack ran tests that substantiated these claims, further fueling concerns.

Despite these setbacks and the negative press, Pond0X continued to enjoy a robust following. Even two months after its launch, the project’s official Twitter posts received hundreds of supportive comments. Many users expressed their satisfaction with the DEX, leaving comments such as “FEELS GOOD MAN” and “Best DEX, don’t see a reason for people to use other tbh.”

Antony Williams, a crypto trader and blogger, added another perspective to the debate. After analyzing the app’s smart contract code, he described Pond0X as “fundamentally an LP Farm” rather than an outright scam. He explained that the app assigns each user an ID, determining their share of a pool of Pepe tokens.

Users can enhance their Pepe rewards by invoking the “BribeforLevelUp” function, which requires a deposit of 0.26 ETH. This deposited ETH is then used to buy Pepe tokens, which are added to the reward pool. Williams, however, was quick to point out that the PNDX token might have been intentionally designed to be “essentially valueless” to sidestep potential legal issues.

Pond0X DEX’s Impressive Milestone

Despite the controversies and criticisms that have surrounded Pond0X, the DEX launched on September 1. Citing a Dune dashboard created by a user named Mogie, the official Pond0X channel showcased that the DEX had achieved over $111 million in all-time trading volume by September 29. This impressive milestone indicates that a significant portion of the trading community remains undeterred by the criticisms surrounding Pond0X.

Conclusion

In conclusion, Pond0X’s journey has been marked by controversies, technical issues, and skepticism. However, the recent achievement of over $100 million in trading volume demonstrates the project’s resilience and the continued trust of a section of the crypto community. Only time will tell if this trust is well-placed or if the concerns raised by critics hold any validity.