ERC-404 Tokens Plummet, $60 Million Evaporates in 24-Hour Market Dive

The post ERC-404 Tokens Plummet, $60 Million Evaporates in 24-Hour Market Dive appeared first on Coinpedia Fintech News

The ERC-404 tokens, an innovative hybrid of ERC-20 and ERC-721 on the Ethereum Blockchain, experienced a sudden and substantial decline in market value. Within a mere 24 hours, the sector lost more than a third of its total market value, a whopping $60 million gone.

ERC-404 Tokens Tumble

The sudden crash in the value of ERC-404 tokens, which are still in the trial phase and awaiting formal adoption as an Ethereum Improvement Proposal (EIP) standard, caught many off guard. Many key projects utilizing ERC-404 suffered substantial losses, witnessing notable drops in their values.

PANDORA, a well-known ERC-404 token, lost more than 24% of its value. DEFROG also went down by 26%, and RUG faced a big drop of 31%.

However, PANDORA’s fall came after a week of going up quickly, notably, its price surged from $8,600 to $32,200, showcasing a remarkable gain in a relatively short period.

Altogether, the crypto world lost $60 million in total, showing that a lot of people were selling their tokens.

Decoding ERC-404 Token

The ERC-404 tokens showcase an extraordinary trait, offering incredible adaptability for a wide range of assets and uses. This experimental standard aims to combine the trading liquidity of fungible tokens (ERC-20) with the unique features of non-fungible tokens (NFTs or ERC-721).

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 prowess in creating wealth in the dynamic world of cryptocurrencies.