What Makes Pandora, Based on ERC404, Skyrocket 3,600% in Just Five Days?

What Makes Pandora, Based on ERC404, Skyrocket 3,600% in Just Five Days?

What Makes Pandora, Based on ERC404, Skyrocket 3,600% in Just Five Days?

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The 3,600% Surge of PANDORA in Five Days
What is the New Protocol ERC404 and the New Project Pandora?
Understanding ERC404 Using Pandoro as an Example
Will ERC404 Create New Hotspots?

The token PANDORA, issued based on the new token standard ERC404, experienced a price surge of over 3,600% in just five days, soaring from an opening price of $212 to $7,500. Currently, the market value of PANDORA tokens is $74 million, with a liquidity pool of $17.3 million.
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In the past 24 hours, the trading volume of PANDORA reached $44 million, making it the most traded token 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 an experimental token based on the upcoming protocol ERC404 (which has not yet passed the ERC standard protocol review).

ERC404 is a new token standard built by former Coinbase engineer 0xacme. It combines the token standards of both ERC20 and non-fungible tokens (NFTs, ERC721). Essentially, it is both an NFT and a token, introducing divisibility 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 is automatically replaced with 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 is destroyed. This means that the holder of the Pandoro NFT has $17 million in liquidity from the PANDORA token pool, without worrying about finding buyers for the NFT.
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Additionally, Pandora NFTs have five different levels of rarity, and each minting process randomly generates one of these five levels. It should be emphasized that when a user transfers PANDORA tokens from Wallet A to Wallet B, the NFT is also burned and randomly generated. Therefore, the only way to avoid re-randomization while transferring NFTs is to directly buy/sell NFTs.

Overall, ERC404 is similar to the recently hyped Tiny SPL tokens based on Solana, as they both break the framework of “tokens” and “NFTs” and give NFTs native financial attributes, seamlessly integrating them into DeFi protocols to easily achieve financial applications such as lending, collateralization, and leverage.

Whether these new concepts can open up 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 favorite, just like ORDI in the Bitcoin ecosystem.

(This article is authorized for reprinting from GT Radar.)

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