With the launch of Reservoir (VALOR), and now Pond0x (PNDX), one wonders if it is becoming more common for the investors to suffer huge losses when they make fresh capital investments in the memecoin world.
The meme-coin market has been on a roller coaster ride over the last year, leaving many investors with soured feelings towards memecoin token offerings. On July 28, with the launch of Pond0x (PNDX), investors suffered millions in losses after this non-fungible token’s initial surge, soon to expire in spectacular fashion. Data from the Maestro trading app shows that the Pond0x token PNDX shot up to $0.36 before collapsing to near zero in the span of five minutes. Many assumed that the fundraising was to be processed through Uniswap, when instead the token-creator, “Pauly” -the pseudonymous founder of Not Larva Labs – listed both a contract address and a unique web app. The decentralized application enabled users to mint new tokens in exchange for a fixed amount of Ether, similar to popular fundraising tactics in current meme-coin markets.
Meanwhile, many unsuspected users flooded in to buy PNDX through bot trading, presuming quick, uncomplicated investment in the coin. Numerous comments emerged referring to losses in the thousands, to a user that “aped” 2.5 million dollars ending out at being worth 15 cents. According to a report regarding the launch from memecoin holder Rune, a monumental 2.2 million dollars was lost amongst investors. Impressively enough, the now exposed coin contains a transfer line of code attached to a peculiar “brutalized_” function. With details on the effect of the “brutalized” function still hazy, All this moved Pauly into the fast lane to disappear for weeks until to became all clear in this dark episode.
In the wake of Pond0x, the hash of hundreds of investors taking advantage of crypto-incentivized markets, sunk. Getting in close before the upswing and out safely before the descent, these small gains dominated the news, while the heavily handed losses weighed on everyone’s short-term success. This is unfortunately a trend the has been ever-present during Reservoir (VALOR) rise and fall, and alongside this unprecedented amount of losses, the memecoin market including Pepe Coin, Thug life, and its standouts across social media, seem to point to hyperrollercoaster ahead.
