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Pond0X token launch snafu leads to millions of dollars in losses

Pond0X token launch snafu leads to millions of dollars in losses

The launch of memecoin Pond0x (PNDX) has led to millions of dollars in losses for investors, according to multiple reports on social media on July 28. Data from the Maestrobots trading app shows that the token reached a price of $0.36 before collapsing to near zero in a span of five minutes.

Maestrobots chart of PNDX/USD during its launch. Source: Maestrobots.

The launch of Pond0x was announced on July 28 by pseudonymous Not Larva Labs founder “Pauly,” who is known only by his X username. Not Larva Labs is the developer of an NFT trading app for CryptoPunks and for a separate parody collection called “CryptoPhunks.” It is not associated with Larva Labs, the creators of CryptoPunks.

In the announcement, Pauly listed the contract address for PNDX and the URL for its official web app.

The web app contained a Pepe meme graphic, similar to the ones used in successful memecoins like PepeCoin. The app allowed users to mint new PNDX tokens in exchange for a fixed amount of Ether (ETH), similar to a presale or fundraise. However, many users expected the fundraise to be done on Uniswap, and the listing of both the website and the contract address in the same post caused confusion, according to social media reports.

Related: Meme coin price predictions 2023 compared: Pepe Coin, Thug Life, and more

Some users purchased the token on Uniswap through bot trading apps like Maestrobots or Team Unibot, increasing its price. Meanwhile, other users minted tokens using the web app and sold them into the market at a profit.

Users who lost crypto complained they had lost thousands or even millions of dollars. In reply to Pauly’s initial post, one PepeCoin enthusiast complained “WTH !!!! I just got wrecked !!! 4eth [$7,484] worth like $0 !!” Another collector stated, “I put $50,000 and now it’s worth $10 dollars,” which provoked yet another collector to reply “That’s nothing, I just aped 2.5 million dollars and it’s [now]15 cents.”

According to a report from memecoin holder RuneCrypto, investors lost over $2.2 million in the launch.

Click Here to Read the Full Original Article at Cointelegraph.com News…