• The launch of the memecoin Pond0x led to millions of dollars in losses for investors.
• Investors bought tokens on Uniswap through bot trading apps, increasing its price.
• Other users minted tokens using the web app and sold them into the market at a profit, leaving some investors with huge losses.
Pond0X Token Launch Leads to Millions of Dollars in Losses
Investors reported they lost up to $2.2 million when the developer of Pond0x allegedly mishandled the token’s launch on July 28th. Data from the Maestro trading app showed that the Pond0x (PNDX) token reached a price of $0.36 before collapsing to near zero in a span of five minutes.
Launch Announcement Confuses Investors
The launch was announced by Jeremy Cahen, founder of Not Larva Labs also known as “Pauly” on Twitter. Not Larva Labs is responsible for developing an NFT trading app for CryptoPunks and CryptoPhunks, though it is not associated with Larva Labs who created CryptoPunks. In his announcement Cahen listed both the contract address and URL for its official web app which contained a Pepe meme graphic similar to successful memecoins like Pepecoin (PEPE).
Web App Led To Profit Selling
The web app allowed users to mint new PNDX tokens in exchange for Ether (ETH), similar to a presale or fundraiser but many users expected it be done through Uniswap instead leading to confusion between buyers. Some users purchased tokens on Uniswap through bots driving up prices while other were able to use the web app and sell them into the market at a profit leaving some investors with huge losses amounting up to millions of dollars according to reports from social media platforms like Reddit and Twitter.
Coin Enthusiast Complaints
In response to initial post one coin enthusiast complained about loosing 4 ETH worth around $7,484 while another stated they had put in $50,000 now worth only $10 dollars provoking yet another collector who said they had aped 2.5 million dollars now worth only 15 cents according to reports from memecoin holders Rune.
It appears that due miscommunication between buyers confusion over where exactly tokens were being purchased combined with lack of security measures taken by developers has lead investors investing sizable amounts crypto assets losing out on their investments due mishandling this token launch by developers behind Pond0x project .