#ERC404 the hot new narrative that's already skyrocketing over 7,000%.- What is ERC-404- How ERC404 works- Airdrops & Strategies to capitalisations- Eco-System Projects with over 100x potentialDon't late, while it's still very early like as in previous years BRC20 (Ordinals), NFTs, Metaverse, Web3, DeFi etc... ! WHAT IS ERC-404? ERC-404 - A new standard that combines the benefits of ERC-20 and NFT ERC-721 tokens, which was introduced just a few days ago.ERC-404 assets have both fungible and non-fungible properties:➜ ERC-20 tokens are fungible units, much like dollars.➜ ERC-721 tokens represent non-fungible properties, such as NFT PFPs.This brings together the best aspects of both assets, overshadowing any negative aspects they may have.Basically, ERC-404 introduces two major functionalities: Liquidity and fractionalization. The fungibility of the bound ERC-20 token acts as a price floor for the NFT and allows shared ownership of the unique asset. This solves liquidity by letting you easily buy and sell fractions of the NFT on a decentralized exchange.HOW ERC-404 WORKS..? It may sound complicated, but here it is super simplified criteria of description is:- Suppose the project's total supply is 5,000 TOKEN, using ERC-404 standard.- If you buy exactly 1 TOKEN (not 0.97 or 0.5), then 1 NFT will be minted to your wallet.- Decide to sell the token? The associated NFT will be burned.✓ It's important to note that NFTs can be traded on NFT platforms, and some of them are already available for purchase on platforms like #Blur or @Opensea As an practical Example-Imagine a scenario where 1000 apartments in a residential area have been tokenized.You understand that the price of these properties will likely increase over time, but purchasing an entire apartment is prohibitively expensive.However, with ERC404, you can now buy just a fraction (1/10000) of a tokenized asset.This means you have the opportunity to invest in a portion of the property and also have the flexibility to sell your share at any time.What are the limitations of current token standards?Existing ERC standards like ERC-20 and ERC-721 cater to either purely fungible assets like currencies or entirely unique collectibles like digital art. This division makes it difficult to enable shared ownership or fluid exchange of distinctive digital items.Understanding ERC-404 through the Pandora projectThe Pandora project represents the first real-world application of the novel ERC-404 token standard. ERC-404 aims to introduce “semi-fungibility” by bundling interchangeable ERC-20 tokens with unique ERC-721 NFTs.Pandora issued 10,000 ERC-404 tokens tied to 10,000 colored box NFTs called Replicants. These NFT boxes appear in one of five colors denoting varying levels of rarity, with common green boxes and rare red boxes. When an ERC-404 PANDORA token is purchased, a random box NFT is generated and bound to that token.Also, PANDORA holders have the odds to receive Airdrops from various other ERC-404 projects. ● PANDORAPrice: $22,500FDV: $220MThe 'X' handler "wehavenohandle" - was the first project to confirm airdrop for holders.What does this actually enable?ERC-404 introduces two major functionalities:Liquidity and fractionalizationThe fungibility of the bound ERC-20 token acts as a price floor for the NFT and allows shared ownership of the unique asset. This solves liquidity by letting you easily buy and sell fractions of the NFT on a decentralized exchange.Dynamic rarityERC-404 allows collectors to influence the rarity of their NFTs post-acquisition. Upon purchasing these tokens, collectors can initially assess the rarity of the NFT they have minted. For enthusiasts aiming to enhance the rarity of their collectibles, there is an innovative option available: transferring the ERC-404 token to a new wallet. This action serves as a mechanism to “re-roll” the NFT’s traits, potentially elevating its rarity.The experimental status of ERC-404While pioneering in its conceptualization, ERC-404 currently remains an experimental token standard. The “ERC” designation implies a standardized protocol that has undergone rigorous peer review and testing through Ethereum’s formal governance processes.However, ERC-404 has not officially passed through the Ethereum Improvement Proposal (EIP) or finalized Ethereum Request for Comments (ERC) stages. Without this formal assessment, the standard lacks the assurance and security auditing of established specifications like ERC-20 and ERC-721.HOW CAPITALIZE ON IT - Currently, ERC-404 is really a degen play.It's important to acknowledge that some projects may result in a total loss.The strategy is straightforward: Invest a portion of your funds into multiple projects, only risking what you're comfortable with.Statistically, 1-2 out of every 10 projects gain incredible results, outweighing any losses incurred.Ideally, if you can withdraw your initial investment after any growth, you eliminate further risk and have the opportunity to benefit from significant growth while weathering potential downturns.ERC-404 Eco-System Projects-Some of the best projects, those already given too much growth and many many are undergoing for projection this year 2024 to boost up market into new style Likewise previously year into Ordinals growth. PANDORA RUG SWPRSDEFROGSNPCYESCOSMICANONSGHOSTERC-404 Benefits-Instead of focusing solely on NFTs, the use of ERC404 allows for the creation of a wide range of unique digital assets, such as:◦ Tokenized RWAs◦ GameFi◦ Collectibles◦ and much moreThis approach ensures access to high-value assets without being solely reliant on the sometimes less liquid NFT market.What's the Risks.? It's important to note that ERC-404 has not undergone the formal Ethereum Improvement Proposal (EIP) and Ethereum Request for Comments (ERC) processes.This lack of community vetting raises concerns about potential security flaws. Therefore, adopting ERC-404 could establish a risky precedent and potentially expose users to unforeseen exploits.DISCLAIMER-All Contents & images are collected from Internet to educate people's about latest projects with educational materials and not intend to breakout anyone's copyright laws, so keep it as an education purpose. Also Investments & Trade in Crypto with self assessment of your funds after Do Your Own Research Completely. #TrendingTopic #TrendingArticle #Write2Earn

A group of developers shake things up in the Ethereum space with a new token standard.In this system, people can buy and sell NFTs as usual or sell parts of them as tokens. Depending on how a project implements the token standard, the regenerated NFTs could be the same as the burnt one or entirely different.👉 Why is the ERC-404 Token Standard Needed?The ERC-404 standard potentially solves two significant issues with NFTs. First is the issue of liquidity. Traditionally, for users to sell an NFT, they need to have a ready counterparty. With ERC-404 tokens, however, functioning like tokens, holders can sell at any time if there is a liquidity pool. At the same time, the ERC-404 token standard offers native fractionalization of NFTs instead of the status quo, where fractionalization projects have to lock up NFTs and issue shares against them.Despite the promise of this solution, users of the experimental ERC-404 standard may be exposing themselves to significant risk.👉 An Unofficial and Experimental StandardDespite being called an “ERC” token standard by developers, the ERC token standard has yet to undergo the typical vetting process for all ERC standard tokens. This process includes submitting improvement proposals (EIPs) and the request for comment phase (ERC). These are designed to ensure that Ethereum upgrades are thoroughly tested and reviewed by the community.Having yet to undergo these processes and being unaudited, the project may carry many flaws that bad actors can exploit.These risks, however, have not stopped many investors from piling into Pandora, the project created by the ERC-404 founders, and other projects that have moved to jump on the trend.👉 The Pandora Project On February 2, ERC-404 developers launched the Pandora (PANDORA) token project with 10,000 tokens and 10,000 associated “Replicant” NFTs with varying rarity levels. These NFTs are all represented as boxes, with the community anticipating them to reveal something later.PANDORA is already trading for over $29,000 after less than a week of trading and boasting a fully diluted valuation of over $222 million, per CoinGecko data.Following the launch of PANDORA, other tokens using the ERC-404 standard have emerged. An example is DeFrogs, a PFP project that claims to be deflationary.👉 On the Flipside The ERC-404 standard is not the first time an unconventional token standard has captured the imagination of crypto market participants. In early 2023, blockchain inscription tokens took the market by storm.👉 Why This Matters It is necessary to understand what ERC-404 tokens are and the risks associated with the experimental standard as it quickly begins to dominate discussions in the crypto space.🚀 Binance also fit Their eyes on that #ERC404 Project. Follow me for informative post and Airdrop. 🔥Also Have opportunity to earn from Bitrue Exchange by affiliation, Per invite 3 USDT. #Write2Earn #ERC404 #NFTMarketplaceInnovation #TrendingTopic

- Introduction of ERC-404 standard brings forth "semi-fungible" NFTs, adding a new dimension to the NFT landscape.
- Ethereum gas fees experience an 8-month high attributed to the surge in popularity of ERC-404.
- Rapid decline in ERC-404 market cap, witnessing a significant 31% drop within a single day.
- Major tokens associated with ERC-404 also face a downturn, with some plummeting by as much as 31%.
- The sudden market decline raises questions about the potential for recovery in the near future or the possibility of a prolonged downturn.
As time progresses, the Ethereum ecosystem undergoes continuous evolution, marked by various innovations. One such recent addition is the experimental ERC-404 standard, which initially garnered significant attention and investment influx upon its launch. However, the excitement quickly turned into concern as the Ethereum network grappled with soaring gas fees, resulting in a downturn in the ERC-404 market.
So, what exactly is ERC-404, and why is its emergence causing strain on the Ethereum network? ERC-404 stands as a novel token standard, distinct from the popular ERC-20 and ERC-721 standards. While ERC-20 tokens maintain fungibility, and ERC-721 tokens introduce non-fungibility through NFTs, ERC-404 introduces a concept of "semi-fungibility," enabling NFTs to be subdivided into smaller, tradable units. This innovation, spearheaded by developers "ctrl" and "Acme," presents promising possibilities for NFT trading and storage.
However, the introduction of ERC-404 coincided with a surge in Ethereum network congestion, particularly evident in skyrocketing gas fees. This surge, reaching an eight-month high on February 9th, indicated a correlation with the ERC-404's popularity. The influx of traders seeking early access to this new standard likely contributed to the network congestion and subsequent fee escalation.
The rise and subsequent correction of the ERC-404 market exemplify the volatility inherent in cryptocurrency markets. Following its meteoric growth since the launch of the Pandora project, the ERC-404 market experienced a substantial decline, reflected in a 31% drop in total market capitalization. Major tokens within this niche, such as PANDORA, DEFROG, and RUG, also witnessed significant declines, indicative of a shift in investor sentiment towards bearishness.
Despite the current market downturn, there remains optimism within the blockchain community regarding the potential of ERC-404. Visionary founders, like Yash Dahekar of DODAS, highlight groundbreaking developments, such as the world's first Multichain ERC404 Indexer with API. Such advancements underscore the ongoing innovation within the blockchain space, despite the challenges posed by market volatility and network congestion.
It's essential to recognize the inherent risks associated with cryptocurrency investments and conduct thorough research before making financial decisions. While Voice of Crypto strives to provide accurate information, readers should exercise caution and make informed choices in navigating this dynamic and volatile market landscape.

#ERC404 #NFT #Ethereum #ETH #Crypto2024
$ETH