The decentralized exchange (DEX) Pond0X recently declared that its total trade volume has hit an astounding $100 million. However, this claim has drawn suspicion and criticism from a variety of sources, with some stating that the whole thing is a fraud.
Controversial PNDX Token Launch And Concerns About Investor Funds
PNDX, Pond0X’s native token, was launched on July 28 with much excitement. The launch, nevertheless, was not without controversy. The project’s founder, Jeremy Cahen, popularly known as “Pauly,” approached the launch of the coin in an unusual way. He provided a link to a website where customers can deposit a certain amount of Ether (ETH) in return for a predetermined number of PNDX. He also disclosed the token’s contract address along with this.
This sequence of events triggered a flurry of activity within the cryptocurrency community. Some investors quickly started buying PNDX on Uniswap using the new token’s contract address in an effort to get their hands on it. Others, meanwhile, choose to fund the application with their Ethereum (ETH), hoping to receive PNDX tokens in exchange. As a result, PNDX’s price on Uniswap started to exceed the amount of ETH needed to mint the token as demand for the token grew, creating a noticeable price gap.
This price gap provided an opportunity for individuals who had earned PNDX through the application. They could now profitably sell their tokens on Uniswap. However, the entire procedure generated major concerns and skepticism. According to critics, this approach effectively permitted the transfer of nearly $2 million from Uniswap customers to individuals who had minted the token through the application.
Furthermore, there was growing skepticism about the ETH obtained through the application. It looked to be directed to a contract with no obvious provision for retrieval, prompting allegations that the project’s main goal was to channel funds from unaware investors into Cahen’s hands.
The controversy escalated as coding experts discovered a major fault in the design of the PNDX token. PNDX, unlike traditional tokens, lets anyone transfer them, putting all holders at risk of “theft” by skilled coders. Nonetheless, despite these challenges, Pond0X retained a significant following, with users complimenting the DEX’s performance on Twitter even two months after its launch.
On September 1, Pond0X launched its decentralized exchange despite the debates and objections. The official channel of Pond0X displayed that the DEX had reached over $111 million in all-time trade volume by September 29 by citing a Dune dashboard made by a user by the name of Mogie. This remarkable accomplishment shows that a sizeable segment of the trading community is still undeterred by Pond0X’s detractors.
While controversy and technical difficulties have hampered Pond0X’s progress, we can’t deny that its most recent trading volume achievement demonstrates the project’s resiliency and the sustained confidence of a segment of the cryptocurrency community.