Just yesterday, the innovative ERC-404 tokens were riding high, promising to revolutionize the NFT world. In an unexpected twist, the tokens, a blend of ERC-20 and ERC-721 on the Ethereum Blockchain, recently saw a sharp decline in market value. Within just 24 hours, the sector lost over a third of its total market value, a staggering $60 million vanishing into thin air.
What happened? Was it a mere hiccup or a sign of deeper flaws?
ERC-404 Tokens Tumble
The sudden crash in ERC-404 token values, still in the experimental phase awaiting formal adoption as an Ethereum Improvement Proposal (EIP) standard, surprised many. Major projects using ERC-404 faced losses, with noticeable drops in their values.
The well-known ERC-404 token, PANDORA, lost more than 24% of its value. This came after a week of rapid gains, where its price surged from $8,600 to $32,200, showing a significant upswing in a short time.
DEFROG also experienced a 26% decline, while RUG faced a significant drop of 31%. The downturn in these key projects highlighted the volatile nature of ERC-404 tokens.
In total, the cryptocurrency market lost a substantial $60 million, indicating a rush of people selling their tokens in response to the ERC-404 downturn.
But the Marvel Continues
The ERC-404 tokens stand out for their adaptability, combining the trading liquidity of ERC-20 tokens with the unique features of non-fungible tokens (NFTs or ERC-721). This experimental standard aims to make trading NFT portions more accessible and cost-effective, enticing more people into the market.
Tokenization, a groundbreaking concept, allows assets to be split into smaller, more easily traded units. The ERC-404 standard is a forward-thinking initiative, making the trading of parts of an NFT more accessible and cost-effective. This approach aims to encourage more people to get involved in the market.
Overnight Succes Story
Despite its experimental nature and lacking official recognition as an Ethereum Improvement Proposal (EIP), the ERC-404 standard has already spurred the creation of various projects.
PANDORA, the first token using ERC-404, gained a lot of support from platforms like OKX, Blur, and OpenSea marketplaces.
DEFROGS is another project thriving under the ERC-404 standard, attracting attention with substantial growth. Recently, Coinpedia reported a fascinating overnight success story where a trader pocketed an impressive $166,000 in just two days by investing 0.258 ETH ($613) in the DeFrogs token.
These instances underscore the potential impact of the ERC-404 standard, showcasing its ability to create wealth in the dynamic world of cryptocurrencies. Despite recent setbacks, the experimental nature of ERC-404 tokens continues to fuel innovation and intrigue.
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