ERC-404: New Narrative on Horizon
CryptoRankHow Does ERC-404 Works?
The easiest way is to describe it using an example. The first project to use the ERC-404 standard was Pandora, which has an issue of 10,000 tokens and 10,000 NFTs. Each holder of a fungible token also receives an NFT associated with the fungible token. Each time a user buys or sells $PANDORA, the NFT is minted or burned.
So far, Pandora and other ERC-404 tokens have seen huge gains over the past few days and keep growing. It also fits nicely into the current narrative of meme tokens. Follow them on CryptoRank to track their performance!
Pros and Cons of ERC-404
ERC-404 is designed to solve one of the key problems of NFTs, their liquidity, meaning it could be a game-changing solution for the NFT market.
While the new token standard is attracting a lot of attention, it has one significant drawback: ERC-404 is unaudited, which means it may have significant vulnerabilities. Be careful and DYOR!
On CryptoRank you can find all relevant info about ERC-404 projects in our new tag. The tag is updated regularly, stay tuned for updates!
