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The PANDORA that soared 3,600% in five days
What is the new ERC404 protocol and the new project Pandora?
Understanding ERC404 using Pandoro as an example
Will ERC404 create a new hot spot?
The token PANDORA, issued based on the new token standard ERC404, skyrocketed from an opening price of $212 to $7,500 in just five days, with an increase of over 3,600%. Currently, the market value of PANDORA tokens is $74 million, and the liquidity of the liquidity pool has reached $17.3 million.
In the past 24 hours, the trading volume of PANDORA has reached $44 million, making it the token with the highest trading activity on the Ethereum chain. This raises curiosity about the background of this new token and why it can attract market attention.
Unlike other meme coins based on the ERC20 token standard that are subject to market speculation, Pandoro is a new token experimental product issued based on the developing protocol ERC404 (which has not yet passed the review of the ERC standard protocol).
ERC404 is a new token standard built by former Coinbase engineer 0xacme. It combines the token standards of both tokens (ERC20) and non-fungible tokens (NFT, ERC721). Essentially, it is both an NFT and a token, introducing divisible characteristics to digital collectibles and improving their inherent liquidity limitations.
Using Pandoro as an example, when a user buys a complete PANDORA token from the liquidity pool, the token will be automatically converted into a randomly generated Pandora NFT (note that the user must own a complete token to obtain the NFT). Conversely, when a user sells PANDORA tokens, the NFT will be destroyed. This means that the holder of the Pandoro NFT has liquidity of $17 million in the PANDORA token liquidity pool, without worrying about the NFT being unwanted.
In addition, Pandora NFT has five different levels of rarity, and each minting will randomly generate one of these five levels. It is worth emphasizing that when a user transfers PANDORA tokens from Wallet A to Wallet B, the NFT will also be burned and randomly generated. Therefore, the only way to avoid re-randomization when transferring NFT is to directly buy/sell the NFT.
Overall, ERC404 is similar to the recently hyped NUTS based on the Tiny SPL token standard on Solana. Both break the framework of “tokens” and “NFTs” and give NFTs native financial attributes, seamlessly integrating them into DeFi protocols, easily achieving financial applications such as lending, collateral, and leverage.
Whether such a new concept can further develop new narratives in the future remains to be seen. However, it can be confirmed that once ERC404 or similar protocols gain further adoption, Pandora, as the first token issued based on ERC404, will undoubtedly become a market target like ORDI in the Bitcoin ecosystem.
(Authorized reprint from GT Radar)
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