Investors Lose Millions in This Meme Token - COINTURK NEWS
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Investors Lose Millions in This Meme Token

12:18 am (68 days ago)
July 29, 2023

We see that the crypto markets are filled with new risks for investors every day. This time, something even more interesting happened. The mistake during the launch of the Pond0X project confused investors. While a clever group of crypto investors managed to turn the process into profit, others experienced million-dollar losses.

Pond0X Token

With the release of the memecoin Pond0x (PNDX), investors suffered millions of dollars in losses. The token launch was announced by “Pauly,” the founder of Not Larva Labs. Larva Labs is the developer of a NFT trading application for CryptoPunks and a separate parody collection called “CryptoPhunks.” They are not associated with the creators of CryptoPunks, Larva Labs.

In the announcement, Pauly listed the contract address of PNDX and the URL of the official web application. The web application included a Pepe meme graphic similar to those used in successful memecoins like PepeCoin. The application allowed users to mint new PNDX tokens in exchange for a fixed amount of Ether, similar to a presale or donation campaign. However, according to news on social media, many users were expecting the fundraising process to take place through Uniswap, and the listing of both the website and contract address in the same post caused confusion.

Millions of Dollars Lost

Some users purchased tokens using trading bots like Maestrobots on Uniswap to increase the price. Meanwhile, other users minted tokens using the web application and sold them on the market for profit. Users who lost crypto complained about losing thousands, even millions of dollars. In response to Pauly’s initial post, a PepeCoin enthusiast wrote:

“WTH !!!! I just got wrecked, my $7,484 is almost zero now.”

Another user mentioned that their $50,000 dropped below $10. A different investor said that their $2.5 million investment plummeted to 15 cents, equivalent to around 4 Turkish Lira, as the price approached zero. According to a report by RuneCrypto, investors lost over $2.2 million during the launch.

Another user reported that PNDX had a faulty transfer function that allowed users to transfer money from any other user. Blockchain data shows that the transfer function for the coin is unusual. Instead of including a line of code that updates the user’s balance, it calls a separate “brutalized_” function. The team said they plan to compensate the victims’ losses with an airdrop.

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