ERC-404: a next 1000x opportunity or just another pump and dump?
What is ERC-404?
ERC-404 is an experimental token standard that aims to bridge fungible tokens and #NFTs to enable liquidity and fractionalization.
A Simple Explanation of ERC-404
When you combine an ERC-20 Token + NFT, then it's an ERC-404 Token.
If:
You hold <1 ERC-404, then it's an ERC-20 token, and it's tradable on Uniswap.
And if you hold >1 ERC-404, then it's an ERC-20 Token + NFT, and the NFT will be tradable on Opensea.
If you Hold 1 ERC-404 + Sell 0.5 ERC- 404 = Burn NFT
If you Hold 0.5 ERC-404 + Buy 0.5 ERC- 404 = Mint NFT
If you Hold 1 ERC-404 + Sell NFT = Sell 1 ERC-404
Examples of ERC-404 tokens
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PANDORA (Market Cap: $197.5 Million)
DEFROGS (Market Cap: $15.6 Million)
RUG (Market Cap: $2.82 Million)
TADPOLE (Market Cap: $1.49 Million)
A few of you asked about the ERC-404 tokens, and I have shared these 4 tokens.
But as I said earlier, ERC404 is an experimental token standard, and it has not been audited yet.
The market cap of ERC-404 tokens are very small, and it is very risky to invest money in them.
