The Pond0x protocol, spearheaded by Jeremy Cahen (known as @Pauly0x) and closely associated with the pseudonymous developer @hWonderofWorld Ryan Hickman, has been at the center of significant controversy in the cryptocurrencymarket.
Launched in July 2023, Pond0x, a decentralized exchange (DEX) a router from uniswap, and its associated tokens $PNDX, $PORK, $PNDC, $WPOND, and $PONDSOL have been accused of facilitating substantial financial losses for investors, with some estimates suggesting millions of dollars in damages. Posts on X by the blockchain analyst @RootkitAlpha (Dominium), alongside various web reports, paint a troubling picture of alleged rug pulls, market manipulation, and deceptive practices.
This article compiles and analyzes these allegations to provide a clear, evidence-based narrative for legal and regulatory scrutiny, detailing the mechanisms of the alleged scams and their impact on the crypto community.
The scale of the financial harm is staggering, with reports of individual investors losing hundreds of thousands of dollars and many experiencing drawdowns exceeding 90% on their holdings. The following sections outline the history of Pond0x, the roles of Pauly0x and hWonderofWorld, the mechanics of the alleged scams, and the community’s response, supported by @RootkitAlpha’s timeline and other credible sources.
The goal is to provide a professional and actionable case for law firms and regulatory bodies, such as the Securities and Exchange Commission (SEC), to investigate potential violations of securities laws, fraud, and consumer protection regulations.
The Pond0x Protocol and Its Tokens
Pond0x was introduced on July 28, 2023, as a decentralized exchange operating on Ethereum, later on Solana, and the Magma blockchain that was never launched, with a stated mission of pioneering “Crypto 2.0” by redistributing protocol revenue to users rather than venture capitalists. The ecosystem includes several tokens:
$PNDX: The initial token launched with Pond0x.
$PORK: A fork of the Pepe memecoin, created in response to alleged misconduct by Pepe’s original developers (according Jeremy Cahen and Ryan Hickman narratives).
$PNDC: The native token of the Pond0x DEX, tied to the “Pond Water” system for Ethereum-based rewards and latter but never launch until the date of this article,
“Pond Water” system for Solana-based rewards.$WPOND: A Solana-based token introduced later, enabling users to lock tokens for daily Solana rewards, to be seen, never happened.
$PONDSOL: A newer token introduced in 2025, allegedly part of a new narrative following significant losses in earlier tokens and a simple Liquid Staking Token using Clearsol Network, nothing even built or created natively on the protocol.
The protocol was founded by Jeremy Cahen, a controversial figure known for his involvement in CryptoPhunks and Not Larva Labs, and promoted heavily by @hWonderofWorld (Ryan Hickman), a developer. Despite initial hype, the project quickly faced accusations of being a rug pull due to its unorthodox token mechanics and significant investor losses.
Allegations of Deceptive Practices
1. The $PNDX Launch: A Flawed Smart Contract and Immediate Losses
The launch of $PNDX on July 28, 2023, set the stage for the controversies surrounding Pond0x. Pauly0x announced the token’s contract address and an official web app, encouraging users to deposit Ether (ETH) to mint $PNDX at a fixed rate.
Simultaneously, the token was traded on Uniswap, where its price surged to $0.36 before crashing to near zero within minutes, resulting in estimated losses of over $2.2 million for investors.
The primary issue was a critical flaw in the $PNDX smart contract, which included a “directTransfer” function allowing anyone to transfer tokens from any wallet without permission. This vulnerability was exploited rapidly, with some users transferring others’ $PNDX to themselves and dumping them on Uniswap for ETH, causing the price collapse. @RootkitAlpha has highlighted this as a deliberate design flaw, that was pointed also by @ZachXBT .
Noting in a May 26, 2025 @rootkitalpha, post: “He rugged your liquidity, dumped your tokens, and still had time to open VSCode for the screenshot. $PNDC $PORK $WPOND all dead.
Pauly0x deflected blame, claiming the contract was “designed as such” and that the losses were a lesson for traders who failed to follow instructions to mint via the official website. However, critics, including @RootkitAlpha, argue this was a calculated move to exploit uninformed investors, with seven addresses reportedly minting $PNDX before the public announcement, raising suspicions of insider trading.
https://cryptorank.io/news/feed/e856e-unveiling-the-pndx-fraud
2. $PORK, $PNDC, and $WPOND: A Pattern of Hype and Collapse
Following the $PNDX debacle, Pond0x introduced $PORK, $PNDC, and $WPOND, each accompanied by aggressive marketing from @hWonderofWorld and Pauly0x. Posts on X show hWonder and Pauly promoting $PORK with enthusiasm, urging the community to “Buy $PORK. Mint $PORK. Lock $PORK. Smile while doing it.” However, @RootkitAlpha alleges that these tokens followed a similar pattern of hype, liquidity drainage, and collapse, leaving investors with losses exceeding 90%.
$PORK: Launched as a Pepe fork, $PORK was heavily promoted but crashed to near zero after Pauly0x reportedly calling his followers “retarded.” @RootkitAlpha described the token’s chart as resembling “the heartbeat of erectile dysfunction” with “95% drawdowns.”
https://bdncontent.com/crypto-scams-2024-jeremy-cahen/$PNDC: As the DEX’s native token, $PNDC was tied to the Pond Water system, promising Ethereum rewards for locked tokens. However, @RootkitAlpha claims the rewards were non-existent after only less than a month or insufficient Back on early 2024, and latter on liquidity was drained, rendering the token worthless.
$WPOND: Introduced as a Solana-based token, $WPOND followed the same model of locking for rewards but faced similar allegations of manipulation and value destruction, and Pond Water now supposed to be launched on Solana never seen the light, another promise unfulfilled, just smoke and mirrors once again.
On May 26, 2025, @RootkitAlpha’s post summarizes the outcome: “After draining, off-ramping millions, and nuking $PORK, $PNDC & $WPOND into oblivion… ‘Endgame’ wasn’t a warning it was just the end of Chapter 1.” This suggests a deliberate strategy of hyping tokens, extracting liquidity, and abandoning investors.
3. $PONDSOL: A New Narrative with Familiar Red Flags
In 2025, Pond0x introduced $PONDSOL, which @RootkitAlpha describes as “fresh victims, same playbook.” The token is presented as a continuation of the Pond0x ecosystem, but with “no rewards, no liquidity protection,” and no transparency. This move is seen as an attempt to pivot to a new token after the collapse of previous ones, potentially to attract new investors unaware of the project’s history.
4. Alleged Off-Ramping and Personal Enrichment
@RootkitAlpha point and call out Pauly0x of off-ramping millions in ETH and USDC while investors’ holdings plummeted.
A May 26, 2025, post contrasts Pauly0x’s pre-scam persona (“backpack & sandals”) with his post-scam lifestyle (“jet-setting & off-ramping”), suggesting personal enrichment at the expense of the community.
Some of the TX's:
etherscan.io/tx/0xb933c3889d54b6dc00f2e88ee645e40312aa8494050aa46bceb226d1c12a7fc9
etherscan.io/tx/0x4bdb7db7c4382638023fe208b2f8fbcddee998a66f460f4ad705ee2258512fbf
etherscan.io/tx/0xb753e3e4a1a925c717ad97d7f8ee3857b225de49920a40b9e232db6bc70ec693
etherscan.io/tx/0x904c3bf027d03916a87c605d7ffa31d79f66ce1531c283089bddda0951c28304 etherscan.io/tx/0x4aa40aef9183a8c8dbe8c481bb6521cb6f8e994838719cec16edac6a3db20c23
https://cointelegraph.com/news/pond0x-dex-claims-100-million-trading-volume-critics-allege-scam
Community Impact and Financial Losses
The financial toll on investors has been severe. Web reports estimate initial $PNDX losses at over $2.2 million, with subsequent tokens causing further damage. Reddit threads and X posts document individual losses, with one user reporting thousands in $PNDX vanishing due to liquidity pool issues, and others claiming losses in the hundreds of thousands. @RootkitAlpha notes that “many more” investors experienced drawdowns exceeding 90%, indicating widespread financial devastation.
The Pond0x community, initially active on X, has fractured. Supporters argue the protocol’s high trading volume ($100 million by September 2023) reflects success, while critics, including @RootkitAlpha, highlight the lack of investor protections and transparency. The absence of anti-money laundering (AML) or sanctions controls in Pond0x’s operations raises additional concerns about its use for illicit activities.
https://cointelegraph.com/news/pond0x-dex-claims-100-million-trading-volume-critics-allege-scam
https://bdncontent.com/crypto-scams-2024-jeremy-cahen/
Legal and Regulatory Implications
The allegations against Pauly0x and hWonderofWorld suggest potential violations of U.S. securities laws and consumer protection regulations, warranting SEC investigation. Key issues include:
Securities Fraud: The promotion of $PNDX, $PORK, $PNDC, $WPOND, and $PONDSOL involved misleading statements about rewards and token value, potentially constituting fraud under Section 10(b) of the Securities Exchange Act of 1934.
Market Manipulation: The deliberate inclusion of a “directTransfer” function and insider minting before public announcements suggest manipulative practices, violating SEC Rule 10b-5.
Unregistered Securities Offerings: If the tokens are deemed securities, their sale without registration violates Section 5 of the Securities Act of 1933.
Consumer Protection Violations: Deceptive marketing and failure to deliver promised rewards may breach state and federal consumer protection laws.
Money Laundering Concerns: The lack of AML controls, as noted in reports, could implicate Pond0x in facilitating illicit financial flows.
Additionally, Pauly0x faces allegations of felony assault related to a confrontation with a scam victim, further escalating the need for legal scrutiny. His prior involvement in a $9 million lawsuit by Yuga Labs for NFT trademark infringement underscores a pattern of controversial behavior.
Community Sentiment and @RootkitAlpha’s Role
@RootkitAlpha, has been instrumental in exposing Pond0x’s practices. Their posts, laden with receipts and sarcastic commentary, aim to educate the crypto community. Examples include:
May 23, 2025: Mocking Pauly0x’s claims of being a “crypto king” while highlighting token drawdowns.
May 26, 2025: Detailing hWonder’s promotion of $PORK followed by Pauly0x’s dismissal of the tokens’ value.
May 26, 2025: Accusing the team of draining liquidity and off-ramping funds, with $PONDSOL as a new scam iteration.
Nonetheless, his timeline provides a critical lens into Pond0x’s operations, supported by on-chain data and community feedback.
The Pond0x protocol, under the leadership of Jeremy Cahen (Pauly0x) and Ryan Hickman (hWonderofWorld) , has left a trail of financial devastation, with investors losing millions due to alleged rug pulls, market manipulation, and deceptive practices. The pattern of hyping tokens, exploiting smart contract flaws, and abandoning investors with worthless assets demands immediate regulatory attention. The SEC, law firms, and other authorities should investigate the following:
Smart Contract Audits: Examine the $PNDX contract’s “directTransfer” function and subsequent tokens for intentional vulnerabilities.
Financial Records: Trace the flow of ETH and USDC to Pauly0x’s wallets and exchanges like Gemini, Kraken, and many other platforms like LIFI, Cowswap, lidofinance,etc that can show the outflow and confirm allegations of off-ramping.
Investor Restitution: Explore mechanisms to compensate victims, potentially through seized assets.
Criminal Charges: Investigate Pauly0x’s alleged assault and broader fraud allegations.
The crypto community deserves transparency and accountability. The evidence compiled from @RootkitAlpha’s timeline and web reports provides a compelling case for action. Investors who have suffered losses are urged to document their experiences and contact legal counsel or regulatory bodies to pursue justice.
Disclaimer: This article is based on publicly available information from X posts and web sources. Allegations are not conclusive proof of wrongdoing, and all parties are presumed innocent until proven guilty. Legal and regulatory bodies should conduct independent investigations to verify claims.
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