Pond0x Token Launch Snafu Costs Investors Millions in Losses

• Pond0X Token Launch Snafu Leads to Millions of Dollars in Losses
• Investors reported losses up to $2.2 million when the developer allegedly mishandled the token’s launch.
• Investors complained that they had lost thousands or even millions of dollars.

Pond0x Token Launch Fiasco

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

Confusion and Bot Trading

The launch was announced by Jeremy Cahen, founder of Not Larva Labs who goes by his Twitter handle “Pauly”. The announcement included both the contract address for PNDX and a URL for its official web app, leading to confusion among users expecting it to be launched on Uniswap instead. This confusion was furthered by bot traders who increased prices with automated purchases, while other users benefited from minting tokens through the web app and selling them into the market at a profit.

Investor Losses

Users who lost crypto complained they had lost thousands or even millions of dollars in response to Cahen’s initial post. One Pepecoin enthusiast reported having lost $7,484 worth almost nothing, while another stated they put in $50,000 only for it now to be worth $10 dollars and yet another reported losing 2.5 million dollars with it now being valued at 15 cents.

Cause of Losses

It is not clear what caused this snafu but many analysts believe that not properly separating out the web address and contract address in separate posts could have been a factor in creating confusion amongst investors as well as making it easier for bots to purchase PNDX tokens without understanding what was actually available for sale through the web app.

Lessons Learned

This incident serves as an important reminder that investors should always do their own research prior to investing and never rely solely on automated bot traders or social media posts when making investment decisions related to cryptocurrencies or digital assets