Experimental ERC-404 Token Rockets To $170M Market Cap
The new Ethereum token standard blends features of ERC-20 tokens and ERC-721 NFTs.
By: Pedro Solimano • Loading...DeFi News
The first ERC-404 token to use this standard, Pandora, has spiked in value, currently trading for $16,600, a 5,000% increase since launching on Feb 2. According to DEXscreener, Pandora has a $166M market capitalization.
On Blur, the NFT marketplace, Pandora tokens have a floor price of 7.45 ETH ($17,508), with more than 1,300 holders.
The ERC-404 token standard offers a unique approach for projects interested in combining the easily tradable nature of ERC-20s and the non-fungible aspects of ERC-721s.
According to Pandora’s Github, the experimental standard brings native liquidity and in-standard fractionalization.
Pandora issues 10,000 ERC-20 tokens along with 10,000 “Replicant” NFTs. If a user purchases one full Pandora token, 1 Replicant NFT is automatically minted to their wallet. Conversely, if a user sells their Pandora token, the linked NFT is burned.
Users have the choice of trading the token on decentralized exchanges like Uniswap or trading the NFT on popular marketplaces like Blur and OpenSea.
Interestingly, the standard also includes a rarity component. Each time a Replicant NFT is minted, it appears with a rarity “score,” with green being common and red signifying the rarest.
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