ERC404, discover the technology behind cryptocurrency that appreciated 12,000% in 7 days

Launched on February 2, exactly a week ago, the cryptocurrency Pandora (PANDORA) then attracts the attention of the market value 12,000% in the period. Perhaps more interesting than this is the new standard presented by the project, the ERC404.

Although still cited as “experimental” by the team itself, ERC404 works as a mix of the ERC20 and ERC721 standards. In plain English, this means an amalgamation of the smart contracts behind normal tokens (ERC20) and NFTs (ERC721).

Currently, the main goal of developers is to fractionate NFTs. In other words, thousands of people can share a single NFT, which could be interesting in the case of expensive JPEGs, increasing demand and driving up prices.

This division already existed. The largest example is The Merge, which was divided into 312,686 parts and sold for a total of R$480 million. It was considered the most expensive NFT in history. However, this distribution was dependent on third-party management, something that ERC404 promises to solve.

In a conversation with CoinDesk published on Friday (9), one of Pandora’s developers commented on this while explaining the motivations behind the creation of the ERC404 standard.

“Cryptocurrency investors hate friction.”

“All solutions before ERC404 had a lot of friction and were generally a packaging solution that abstracted the original NFT that people wanted to fractionate or liquefy.”he said ‘ctrl’Pandora developer, told Coindesk. “Collectors hated it and it severely limited adoption. ERC404s have these features as standard and do not rely on confusing protocols and third-party solutions.”

Pandora, the first ERC404, appreciates 12,000% in one week

The biggest example where the ERC404 standard really interests investors is the valuation of Pandora (PANDORA), the first project to test this new technology. In just one trading week, the price increased by 12,000%. In other words, the person who invested R$1,000 last Friday now has R$120,000.

Another detail that draws attention is the price of the coin, which is currently around $25,500 (R$126,500) due to the low number of existing coins, which is only 8,000. For comparison, Bitcoin has 21 million units and Dogecoin has 143 billion.

Regardless, Pandora’s market cap is small at $204 million, still a far cry from BTC’s $925 billion and DOGE’s $11.6 billion.

Pandora (PANDORA), the first cryptocurrency to use the ERC404 standard, increased in value by 12,000% in 7 days.  Source: DexTools/Reproduction.Pandora (PANDORA), the first cryptocurrency to use the ERC404 standard, increased in value by 12,000% in 7 days.  Source: DexTools/Reproduction.
Pandora (PANDORA), the first cryptocurrency to use the ERC404 standard, increased in value by 12,000% in 7 days. Source: DexTools/Reproduction.

Due to the high returns, this is also a risky project. The developers themselves warn about this on Pandora’s GitHub “This standard [ERC404] It is completely experimental and uncontrolled.”. That’s why a simple bug can shake up investments that have been doing very well so far.

New cryptocurrencies copy the ERC404 standard

Due to the success of Pandora (PANDORA), other projects copied its technology. In total, there are already at least 13 cryptocurrencies that use the ERC404 standard, the full list can be found on sites such as CoinMarketCap, which have also been updated on the news.

Largest cryptocurrencies using the new ERC404 standard.  Source: CoinMarketCap.Largest cryptocurrencies using the new ERC404 standard.  Source: CoinMarketCap.
Largest cryptocurrencies using the new ERC404 standard. Source: CoinMarketCap.

However, you should be wary of scams. After all, new trends are always exploited by scammers. Therefore, the investor must thoroughly investigate both the risks of ERC404, which is still considered experimental, and the projects themselves.

Finally, this is an example of how open source culture encourages developers to provide solutions to existing problems in the market, which explains the success of cryptocurrencies in general.

Source: Live Coins

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