Pond0x, a decentralized exchange (DEX) operating on the Ethereum network, touted a volume of more than $100 million despite allegations of being scam. Over the past several weeks, the trading volume of the DEX has grown substantially, likely due to the recent speculation of the Dogecoin (DOGE) cryptocurrency.
Despite the platform’s success, there have been several allegations of fraud against the exchange. One Reddit user noted that token prices are being ‘pumped and dumped’, while another highlighted suspicious behavior when withdrawing funds. With the emergence of these allegations, potential users should use caution when utilizing Pond0x.
The DEX has not made any public statements in response to the allegations. However, Pond0x has noted that the platform utilizes a manual authentication system to institutionally valid user token transfers. It is unclear if this system is enough to protect users from possible scams, but the DEX may need to introduce extra measures to ensure its legitimacy.