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Bear markets tend to have quieter markets, with less concentration in hot projects. In pursuit of excitement and higher returns, investors sometimes shift their focus to meme coins and even the "Shiba Inu" sector. However, high returns often come with high risks. Recently, there was a gruesome example: the meme coin called PNDX suddenly became the market focus, causing Ethereum's gas fees to skyrocket to over 300 gwei at one point. This meme coin seemed like a massive black hole, causing all participating users to lose their funds, resulting in an estimated loss of several million dollars for the community.
Note: "Shiba Inu" is a reference to meme coins inspired by the Shiba Inu dog breed.
Meme coin PNDX had a "rug pull" as soon as it launched. Notably, the tax-free NFT marketplace Not Larva Labs founder and cryptocurrency influencer PAULY (@Pauly0x), with over 150,000 followers on Twitter (now renamed X), announced the launch of the token Pond0x (PNDX) in the early hours of August 29th.
However, he did not specify the token's exact use case, only stating that users could mint PNDX through ETH on the official website, with half of it being exchanged for the meme coin PEPE. Utilizing his influence as a cryptocurrency influencer, PAULY opened a Twitter Space during the sale, creating FOMO (Fear of Missing Out) among the community, quickly attracting the attention of market investors.
What they did not anticipate was that the PNDX contract itself had vulnerabilities, resulting in different outcomes for purchases made on the official website versus decentralized exchanges (DEXs). Users who minted tokens on the official website initially obtained large quantities of PNDX at very low prices. Combined with low initial liquidity, it didn't take many buyers entering the market to increase the PNDX trading price by several multiples.
Because users who obtained tokens on the official website could directly dump them on Uniswap, they eventually drained the entire liquidity pool. This left those who purchased PNDX on Uniswap as the biggest losers in this incident. In response, Twitter user @0xAmazingChar analyzed the situation afterward: "Basically, anyone who bought on Uniswap got dumped on, and the more you bought, the more you got dumped on."
PAULY, the issuer of PNDX: Secondary market trading is a personal responsibility.
What makes the situation even more controversial is that the PNDX contract vulnerabilities appeared to be deliberate, as PAULY himself was the largest seller in this event, with each "rug pull" exceeding 200 ETH.
After the incident, PAULY received criticism from various communities. However, he remained unapologetic, responding to criticism with taunts. He staunchly asserted that secondary market trading is an individual's own responsibility.
PAULY clarified: "I'll clarify that if you buy and sell tokens on the exchange (Uniswap) and don't like your trading decisions, then all responsibility should be borne by yourself, just like that."
In response, JZ, a well-known Chinese cryptocurrency influencer and trader, shared his perspective on Twitter, cautioning retail investors not to follow the crowd blindly. He mentioned that although PAULY's coin launch was clearly designed to exploit investors, everyone should take responsibility for their own trades.
JZ's interpretation of the incident: "In plain language: if you are rushing to invest in coins like Shiba Inu, and you end up losing money, it's your own problem. 'Rug pulls' may seem natural and cool, but I'm not saying the opposite. It's pretty cool, actually. Real villains > fake gentlemen. It's a textbook case of monetizing your influence. Although I think his operation is impressive, I also don't agree with making others lose money through psychological manipulation. In the end, I hope everyone can take responsibility for their own trades, not rush to invest just because others are making money from meme coins, find a strategy that suits them, wait for the right moment, and don't leave the market due to FOMO before dawn. Walk your own path!"
(Note: "Rug pull" refers to a scam in the cryptocurrency market where the creators of a project suddenly abandon it, taking away all the funds invested by users.) |
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Post time 11-9-2023 11:41:54