Ethereum-based ERC 404 Tokens on A Free-Fall, MINER Trader Mints $60K In 11 Hours
The ERC 404 sector of crypto tokens has experienced a significant drop, with a 25% decline within the last 24 hours. The entire sector has lost a total of $60 million in market cap, according to data on CoinGecko.
Leading the market fall is the ERC-404 token Pandora, which saw a massive drop of over 24%. DEFROG also experienced a decline of 26%, while RUG plunged by 31%. Pandora, a prominent ERC-404 token, faced this downturn following a week of rapid ascension. Within the past seven days, the coin surged by nearly 800%, reaching $16,198 at the time of reporting.
The ERC-404 token standard stands out from conventional token protocols by offering a dual structure that combines fungible and non-fungible attributes. This characteristic allows ERC-404 tokens to adapt to various asset types and utility scenarios, enhancing their versatility. This innovative approach fosters seamless interoperability among tokens, paving the way for new token economy models and applications.
One key advantage of the ERC-404 standard is its ability to enhance liquidity for non-fungible tokens (NFTs). By enabling fractionalization, ERC-404 allows for the subdivision of NFTs, allowing multiple individuals to own fractions of digital collectibles. This fractional ownership significantly amplifies the liquidity and utility of NFTs, enabling them to be traded on decentralized exchanges like Uniswap, staked, or used as collateral for cryptocurrency loans.
Pandora was the first token to launch under the experimental ERC-404 standard. It gained rapid support from various platforms, including OKX, Blur, and OpenSea marketplaces. Bitget Wallet, Teller, and Wasabi Protocol lending protocols also announced their support for Pandora. Additionally, the centralized exchange LBank listed Pandora.
Similarly, DEFROGS experienced substantial growth, with one trader earning over $166,000 within two days. This impressive profit was achieved by investing 0.258 ETH ($613) to acquire the DeFrogs token.
In another remarkable trading feat, an investor transformed 1 Ethereum (valued at $2,507) into a staggering $59,000 in just 11 hours. The trader bought and sold the ERC 404 token $MINER, leveraging high gas fees to maximize returns.
Starting with 1 Ethereum from Binance, the trader strategically acquired 1073 units of $MINER at a bargain price, utilizing only 0.802 Ethereum worth of gas. Capitalizing on market dynamics, the trader promptly sold 722 $MINER tokens, pocketing 19.11 Ethereum. With 350 $MINER tokens currently valued at $15,000, the trader’s total profit from this lightning-fast trade stands at approximately $59,000.
While ERC-404 tokens face a free-fall, some traders continue to capitalize on market volatility to earn substantial profits. As the cryptocurrency market remains highly dynamic, it is important for investors to carefully research and analyze market trends before making investment decisions.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The author and publication are not responsible for any financial losses incurred. Please do your own research before investing in cryptocurrencies.
Analyst comment
Negative news. The ERC 404 sector has experienced a significant decline, with a 25% drop in the last 24 hours. The sector has lost $60 million in market cap. Market is likely to remain volatile and investors should be cautious in making investment decisions.
