A new altcoin called PNDX, launched by a popular crypto influencer named Pauly, turned out to be a scam that cost investors millions of dollars.
Promoted by Pauly on social media, the coin had a malicious function in its smart contract that allowed anyone to transfer someone else's tokens to any address.
As soon as liquidity was added to the PNDX pool on Uniswap, it was emptied by malicious people who were selling the tokens for huge profits. The price of PNDX quickly plummeted to zero, leaving investors with worthless tokens. By some estimates, about $2.2 million was lost in the scam.
Initially claiming to lock up liquidity for a week, Pauly said there was a “problem” with the token launch and argued that he would compensate users who suffered losses.
However, during the event, some crypto wallets were also seen making significant profits. From these people, who are not known to be malicious or not, there were those who bought $ 10,000 tokens and earned up to $ 700,000.
*Not investment advice.