ERC-404 Tokens Experience Sharp Decline, $60 Million Vanishes in 24-Hour Market Plunge
ERC-404 Tokens Experience Significant Market Decline, Losing $60 Million in Value
In a surprising turn of events, the ERC-404 tokens, a hybrid of ERC-20 and ERC-721 on the Ethereum Blockchain, recently suffered a sudden and substantial decline in market value. Within a mere 24 hours, the sector saw a loss of over a third of its total market value, amounting to a staggering $60 million.
The crash in the value of ERC-404 tokens, which are currently in the trial phase and awaiting formal adoption as an Ethereum Improvement Proposal (EIP) standard, took many by surprise. Numerous key projects that utilize ERC-404 experienced significant losses, with noticeable drops in their values.
PANDORA, a well-known ERC-404 token, saw a decrease in value of more than 24%. DEFROG also experienced a decline of 26%, while RUG faced a significant drop of 31%.
It is worth noting that PANDORA’s fall came after a week of rapid growth, during which its price surged from $8,600 to $32,200, showcasing a remarkable gain in a relatively short period.
Overall, the cryptocurrency world lost a total of $60 million, indicating a large number of token holders selling their assets.
Understanding ERC-404 Tokens
ERC-404 tokens possess an extraordinary characteristic, offering incredible adaptability for a wide range of assets and use cases. 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 for assets to be divided into smaller, more easily tradable units. The ERC-404 standard is a forward-thinking initiative that aims to make the trading of parts of an NFT more accessible and cost-effective. This approach seeks to encourage greater participation in the market.
An Overnight Success Story
Despite its experimental nature and lack of official recognition as an Ethereum Improvement Proposal (EIP), the ERC-404 standard has already sparked the creation of various projects.
PANDORA, the first token to utilize ERC-404, has garnered significant support from platforms such as OKX, Blur, and OpenSea marketplaces.
Another project thriving under the ERC-404 standard is DEFROGS, which has gained attention for its substantial growth. Coinpedia recently reported an intriguing overnight success story in which a trader earned an impressive $166,000 in just two days by investing 0.258 ETH ($613) in the DeFrogs token.
These instances highlight the potential impact of the ERC-404 standard and showcase its ability to generate wealth in the dynamic world of cryptocurrencies.