ERC404 is officially the hottest new narrative
Here is everything you need to know about this new meta 👇
• What exactly is this new standard?
• Where do you trade these tokens?
• What are some projects to keep an eye on?
• Should you be aping in?
What is ERC404?
This is an Ethereum standard developed by the team Pandora_ERC404. It is not an official standard as they skipped the formal EIP (Ethereum Improvement Proposal) and ERC (Ethereum Request for Comments) processes.
How does it work?
Essentially, the standard combines the ERC20 and ERC721 standards.
ERC20 is your normal token standard (the tokens you trade on Uniswap conform to this standard).
ERC721 is your normal NFT standard (the NFTs you trade on blur.io & opensea conform to this standard).
ERC404 allows these two standards to interact in ways they were never able to before. Every 1 token has an associated NFT.
Buy 1 token/NFT - automatically get NFT/token
Sell 1 token/NFT - automatically lose NFT/token
Where can you trade these tokens?
Uniswap is the place to trade the tokens, as per usual. blur.io and opensea have listed a few collections already and will continue to do so.
What are some projects to keep an eye on?
1. Pandora_ERC404, the pioneering team launched the first collection. These have gone pretty parabolic already.
2. DeFrogsToken followed soon after and have also performed well.
3. Wuxi_ERC404 is launching today and looks like an interesting project - a Telegram deployment bot for ERC404s.
Should you ape?
With any new meta like this, bad actors are quick to pounce and take advantage of those looking for exposure.
Its always safest, imo, to invest in the first-movers and those that have proven to be legit so far. The downside there is that they have probably already pumped.
Make sure you are researching properly and not just throwing money at everything and anything.
This is an interesting new standard and certainly innovative. Because the standard was created without the official processes, there may be some exploitation potential.
