ERC-404 Gains Momentum: Inaugural Token Skyrockets by 12,000% in Just Days
The emergence of ERC-404 is causing a stir in the Ethereum community as it aims to blend the functionalities of cryptocurrency and NFTs. However, there are concerns among Ethereum observers regarding gas optimization and the potential for rug pulls associated with this new standard.
Pandora, the pioneer asset under ERC-404, experienced an astonishing surge of 12,000% in value within just a week, fueled by hype and speculation surrounding the innovative development. Starting at around $250 on February 3rd, Pandora’s price skyrocketed to over $30,000 per token by February 9th, according to data from Dextools. With $80 million in trading volume within 24 hours and a supply of 8,000 coins, Pandora has garnered significant attention.
The rapid success of Pandora prompted leading exchanges like Binance and OKX to extend support for ERC-404 assets on their web3 wallet platforms, further amplifying interest in this nascent standard. Additionally, other token projects such as Monarch and DeFrogs have jumped on the bandwagon, launching tokens built on ERC-404 and even allocating a portion of their supply to Pandora holders.
So, what exactly is ERC-404?
It represents an intersection between ERC-20, the widely-used standard for Ethereum-based cryptocurrencies, and ERC-721, the standard for non-fungible tokens (NFTs). This experimental standard aims to combine features from both sectors, enabling developers to mint fractionalized NFT collections that users can freely trade on platforms like Uniswap.
Unlike existing fractionalized NFTs, which often face liquidity issues and price disparities, ERC-404 seeks to address these challenges by injecting additional liquidity into NFTs and allowing multiple users to collectively own a single NFT. While the standard is currently unofficial and lacks recognition from Ethereum foundations, there are murmurs about a proposal to legitimize it, potentially unlocking additional functionalities like staking.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.