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New coin listed with smart contract vulnerability, secondary market manipulation leads to liquidation, token issuer PAULY: It's not my responsibility.

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New coin listed with smart contract vulnerability, secondary market manipulation leads to liquidation, token issuer PAULY: It

KOL and NFT market founder PAULY recently announced the launch of the token $PNDX, with early token minters promptly deploying funds on Uniswap. Due to extremely low token liquidity, even a small purchase amount caused the token to surge by tens of times. Some early minters made a profit of 44.5 ETH from 1 ETH. Furthermore, there were reports of a vulnerability in the token contract that "allowed unauthorized transfers." In response, PAULY continuously mocked criticisms from various circles on Twitter, stating that he is not responsible for users' speculation in the secondary market.

Who is PAULY @Pauly0x?

PAULY is the founder of the zero-tax NFT market Not Larva Labs and a well-known KOL in the crypto community with 152,000 followers.

He announced the issuance of the token Pond0x PNDX in the early hours of July 29, with no specific application for the token disclosed.

Users can mint PNDX through ETH on the official website, with half of it being exchanged for the meme coin PEPE.

PNDX Secondary Market Plunge

After the official website opened for minting, early speculators quickly provided liquidity on the decentralized exchange DEX in the secondary market.

The problem lies in the extremely low initial liquidity, where a small number of buyers entering one after another is enough to push up the execution price of PNDX several times.

As a result, early website minters also had significant profit potential to offload the tokens.

Twitter user @0xSunNFT mentioned spending 1 ETH on minting on the official website and selling all PNDX tokens on Uniswap for a total of 44.5 ETH.

The crypto community @Axel_bitblaze69 pointed out that a large number of early minters started selling off after the secondary market price surge.

This led to the low liquidity PNDX briefly plummeting to zero within minutes.

PNDX Trend

Contract Flaw: Users Can Transfer PNDX from Others' Wallets

@Axel_bitblaze69 interestingly had the PNDX contract code reviewed by ChatGPT, revealing that users can directly transfer tokens from one user's wallet to another without authorization.

This led to a coin-grabbing war among holders and was one reason why Ethereum chain transaction fees soared to 400 Gwei last night.

Yearn core developer banteg also confirmed the existence of this vulnerability on Twitter.

Token Issuer PAULY: Not My Problem

PAULY did not mention anything related to the vulnerability on Twitter, but continued to tweet extensively to mock criticisms and emphasized that trading in the secondary market is a personal act and not his fault.

He stated:

Today I posted an address, does that mean I'm forcing you to transfer coins? I released a token contract, does that mean I'm forcing you to buy? Let me clarify, if you trade tokens on an exchange and later don't like your trading decisions, then all responsibility lies with you, that's it.

He also criticized Cointelegraph for their coverage of the incident, suggesting it was a paid article by someone with an agenda, and sarcastically thanked them for the publicity.

Digital artist Beeple released new work, likening PAULY's new project to a piece of poop.