The launch of memecoin Pond0x (PNDX) reportedly led to significant losses for investors, as the token's price soared to $0.36 before plummeting back to almost zero within just five minutes. The announcement of Pond0x's launch came from Jeremy Cahen, also known as "Pauly, " the founder of Not Larva Labs. Not Larva Labs is the developer of the CryptoPhunks collection, a separate copycat of the successful CryptoPhunks non-fungible token trading app. However, it is not affiliated with the original creators, Larva Labs.
In the announcement, Cahen provided the contract address and official web application URL for PNDX. The web app featured Pepe meme graphics, similar to other successful memecoins like Pepecoin. Users were able to mint new PNDX tokens by exchanging a fixed amount of Ether, akin to a presale or fundraiser. The confusion arose when some users expected the fundraising to occur on Uniswap, leading to a mix of trading activities on both the web app and Uniswap.
Some users utilized robo-trading apps like Maestro or Unibot to buy tokens on Uniswap, increasing their price. Meanwhile, others minted tokens through the web app and subsequently sold them on the market for a profit. However, many users expressed grievances over losing significant amounts of money. Complaints on social media revealed losses ranging from thousands to millions of dollars.
Reports indicate that investors lost over $2.2 million in the Pond0x offering, with some noting flaws in the token's transfer function that allowed users to take funds from others. Following the chaos, a new version of PNDX was introduced, offering a "dashboard" to compensate victims through "community coins."
Memecoins, associated with viral internet images or videos, gained popularity with the launch of Dogecoin in 2013 and continue to be prevalent today. Notably, SEC-themed memecoins surged in price after the SEC sued cryptocurrency exchanges Coinbase and Binance, while alien-themed memecoins were created and promoted during a US House of Representatives hearing on UFOs.
