ERC-404 Token Standard Combines NFT and Fungible Token Features, Surpasses $170M Market Cap
ERC-404, a unique token standard on Ethereum that merges the characteristics of NFTs and cryptocurrencies, has achieved a market capitalization of $170 million, with $87 million in trading volume.
Tokens on the Ethereum network currently fall into two categories – non-fungible ERC-721 tokens and fungible ERC-20 tokens. However, a new token standard called ERC-404 has emerged, combining the features of both NFTs and fungible tokens, generating significant excitement within the Ethereum community.
Introducing the ERC-404 Token Standard
The ERC-404 token standard introduces a groundbreaking approach to projects that aim to combine the tradable nature of ERC-20 tokens with the unique qualities of ERC-721 tokens. One of the first tokens to utilize this standard is Pandora, which has experienced an impressive increase in value, now trading at $16,600 – a 5000% surge since its launch on February 2nd. Pandora’s market capitalization has reached $166 million, and it boasts over 1300 token holders on the Blur marketplace, with a floor price of 7.45 ETH.
Native Liquidity and In-Standard Fractionalization
Pandora’s implementation of the ERC-404 tokens, specifically through the Replicants NFT collection, has attracted great interest from traders. As a result, decentralized exchanges have facilitated around $87 million in volume, while NFT marketplaces have witnessed $1 million in trades. This outstanding performance has placed Pandora and its Replicants collection among the top 15 NFT collections in the market.
Full Audit Pending
Despite generating considerable hype, the ERC-404 token standard has yet to undergo a comprehensive external audit. Token standards establish the rules that smart contracts must adhere to. By combining the ERC-20 and ERC-721 standards, each Replicant token possesses the qualities of both an NFT and a token. This differs from fractionalized NFTs, where a single token is divided into tradable pieces. The introduction of this new token standard significantly enhances liquidity and allows NFT owners to sell their tokens directly on decentralized exchanges, such as Uniswap.
The Rise of Pandora
Amidst this excitement, the PANDORA token has surpassed all expectations, currently trading at $21,344, representing a remarkable 126% surge in the past 24 hours. Traders have been able to achieve staggering profits, with one individual reportedly earning $1.2 million in just two days when the token was priced at $8,600.
“The price of #Pandora, the first token built on the #ERC404 token standard, has now risen to over $8,600. A trader has made a total profit of ~$1.2M on #Pandora in just 2 days! The trader spent 97,484 $USDT to buy 154 #Pandora at $633 2 days ago and sold 25 #Pandora for 188,695 $USDT at $7,548 1 hour ago, realizing a profit of 91,211 $USDT. The trader currently holds 129 #Pandora ($1.1M), and the unrealized profit is $1.1M.”
Source: The Defiant
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