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Emerging amidst significant controversy and without an “official” token standard, ERC-404 has become the center of discussions following the success of Pandora, which recently saw an incredible rise from its $1,000 level to $32,000 in the last 24 hours, marking an increase of over 30%, but then experienced a sharp pullback. The surge in value can be linked to the actions of famous exchanges such as Binance and OKX that have declared support for ERC-404.
ERC-404 Token Standard
According to data provided by CoinGecko, the Pandora token soared to $32,427, recording a 35% increase within 24 hours. However, it then fell below the current trading price of $20,000, with a market value of $306 million.
Developed by creators using the names “ctrl” and “Acme” for a project called Pandora, ERC-404 stands out as an innovative token standard on the Ethereum blockchain, aiming to combine the functionalities of both ERC-20 (fungible tokens) and ERC-721 (non-fungible tokens or NFTs).
The integration is designed to allow ERC-404 tokens to embody the characteristics of both standards.
As stated on GitHub:
Although these two standards were not designed to be mixed, this implementation tries to do so as robustly as possible while minimizing compromise.
Pandora, the shining star of the ERC-404 token standard, offers 10,000 “Replicant” NFTs as well as 10,000 ERC-20 tokens. With the purchase of one Pandora token on an exchange, the buyer’s wallet is credited with one Replicant NFT.
During this process, if a Pandora token is sold, the resulting NFT is removed from the user’s ownership or “burned.”
Despite its innovative potential and having undergone some preliminary tests, Pandora still encompasses a structure that is “entirely experimental and unregulated.” Nevertheless, the development team continues to inform investors that an independent audit is ongoing to enhance the project’s reliability and security.
Community Concerns
The project’s early stage nature continues to foster a skeptical approach among investors and users. Some go further, questioning the necessity of ERC-404’s existence.
A developer known as “Quit” commented on this issue in a post dated February 8, raising questions about potential issues with ERC-404 based NFTs.
In the post, Quit expressed concerns that NFTs with the ERC-404 standard could be vulnerable to theft if sent to credit protocols not properly configured for ERC-404.
Despite all challenges, the ERC-404 standard seems to have found a strong enthusiasm within various cryptocurrency communities. It appears that the frenzy has been joined by a frog-themed version of the well-known DeGods NFT collection.
