🧰 Pandora's box is open
The biggest event of the past week was the hype around ERC-404, the new unofficial Ethereum token standard developed by the Pandora team.

ERC-404 combines the advantages of both regular tokens (ERC-20) and NFTs (ERC-721).

The basic idea is that ERC-404 allows people to buy and sell NFTs in chunks. And this can be done not only on NFT platforms, where you have to place an order and wait for the buyer, but on ordinary decentralized exchanges with high liquidity.

❓ How does it work? Let's explain in simple words:

• Each token (ERC-404) is tied to an NFT (ERC-404).

• If you buy 1 ERC-404 token, you will receive an NFT along with it. If you sell this token, you will also sell the NFT along with it.

• From this logic it follows that if you buy not the whole token, but only part of it (for example, 0.5), then you will not receive an NFT. To create an NFT, you will have to purchase another 0.5 token.

• If you have 1 token and you sell a portion of it, say 0.1, then your NFT will “burn” because you will have 0.9 tokens left. To restore the NFT, you will have to purchase another 0.1 token.

All this opens up new opportunities for NFT trading and the creation of a bunch of tools around it.

The only problem is that the ERC-404 standard is not approved by the Ethereum Foundation, so it cannot be called completely secure.

According to the developers, getting approval from the Ethereum Foundation is “one of the most bureaucratic things”, so they launched a protocol to bypass all of this.

You can find the first ERC-404 tokens here: https://coinmarketcap.com/view/erc-404/. We don’t recommend buying anything, because the format is still too “raw” and requires improvements.

💼 ETH was added to the experimental portfolio for $10

Channel about Drops | Briefcase | Exchanger
🧰 Pandora's box is open The biggest event of the past week was the hype around ERC-404, the new unofficial Ethereum token standard developed by the Pandora team.

ERC-404 combines the advantages of both regular tokens (ERC-20) and NFTs (ERC-721).

The basic idea is that ERC-404 allows people to buy and sell NFTs in chunks. And this can be done not only on NFT platforms, where you have to place an order and wait for the buyer, but on ordinary decentralized exchanges with high liquidity.

❓ How does it work? Let's explain in simple words:

• Each token (ERC-404) is tied to an NFT (ERC-404).

• If you buy 1 ERC-404 token, you will receive an NFT along with it. If you sell this token, you will also sell the NFT along with it.

• From this logic it follows that if you buy not the whole token, but only part of it (for example, 0.5), then you will not receive an NFT. To create an NFT, you will have to purchase another 0.5 token.

• If you have 1 token and you sell a portion of it, say 0.1, then your NFT will “burn” because you will have 0.9 tokens left. To restore the NFT, you will have to purchase another 0.1 token.

All this opens up new opportunities for NFT trading and the creation of a bunch of tools around it.

The only problem is that the ERC-404 standard is not approved by the Ethereum Foundation, so it cannot be called completely secure.

According to the developers, getting approval from the Ethereum Foundation is “one of the most bureaucratic things”, so they launched a protocol to bypass all of this.

You can find the first ERC-404 tokens here: https://coinmarketcap.com/view/erc-404/. We don’t recommend buying anything, because the format is still too “raw” and requires improvements.

💼 ETH was added to the experimental portfolio for $10

Channel about Drops | Briefcase | Exchanger