If you are active in the cryptocurrency space, you may have stumbled upon ERC-404 over the past few days. But what exactly is it? Well, imagine combining your favorite ice cream flavors into one delicious scoop. ERC-404 performs a similar function and blends the popular ERC-20 and ERC-721 standards into one tasty treat for developers.
What on earth is ERC-404?
So what does this mean in plain English? Let’s analyze it. ERC-20 is like a regular token that can be traded on Ethereum, while ERC-721 is for unique, unique NFTs, which you’ve probably heard of. ERC-404 brings the best of both worlds, allowing developers to create partitioned collections of NFTs. Think of it as dividing pizza into slices that can be freely traded and eaten on an open market.
Now, why is this such a big problem? Well, imagine this. Currently, NFTs are like owning an entire painting, but with ERC-404, you can only own a portion of that masterpiece. It’s like sharing something valuable without buying the whole thing.
But there’s more! ERC-404 allows multiple wallets to directly own a single NFT. Moreover, in the future you can even use your stake as collateral for loans or assert your rights in the cryptocurrency world.
Now let’s talk about the people behind ERC-404. They are like chefs in high-end restaurants cooking delicious food for cryptocurrency enthusiasts. They listened to their users’ complaints and created a solution that minimized the fuss. No more confusing third-party protocols or complex processes, just simple functionality.
But here’s the scoop: ERC-404 is not yet officially recognized. I think it’s a new dish that isn’t on the menu yet. The team is working hard to make it official by submitting an Ethereum Improvement Proposal (EIP). Think of it as getting your recipe right before you serve it to the public.
Meanwhile, the rumors surrounding ERC-404 have become reality. Pandora, the first token based on this new standard, soared in value, creating a whole new sub-asset class in the cryptocurrency market. Other projects are following suit, issuing their own ERC-404 tokens and riding the wave of excitement.
Enter: Pandora
The debut of a pioneering token based on the experimental Ethereum standard has sparked the emergence of a lucrative new sub-asset category within the cryptocurrency market. Pandora, the first player in the “ERC-404” token space, has soared to dizzying heights, starting at $250 a week ago and reaching a whopping $32,000 on Friday morning. With only 8,000 tokens in circulation, Pandora recorded a trading volume of approximately $76 million in just 24 hours.
First ERC-404 airdrop
The excitement surrounding ERC-404 has not gone unnoticed. This is because numerous projects have been quick to embrace this trend by releasing their own versions of ERC-404 tokens. Some have even struck deals by airdropping a portion of their token supply to Pandora holders, sparking additional demand for the tokens and generating buzz around their respective projects. A few have also ventured into alternative blockchains, such as Arbitrum and Solana, with the goal of pioneering new ecosystems.
Adding to the enthusiasm, popular exchanges OKX, Binance and Bybit have thrown their weight behind ERC-404 tokens and announced support for Web3 wallets. This approval not only provides credibility to the standard, but also fosters growing enthusiasm around the standard.
final thoughts
Well, here is a quick guide to ERC-404. It’s like combining your favorite snacks into one irresistible snack. With the potential to revolutionize the way we interact with NFTs, ERC-404 is something to watch out for in the ever-evolving world of cryptocurrency.
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You might also like our recent guide on 15 Dex Airdrops and 7 Wallets Required for Airdrop Farming.
