10 Best ERC-404 Coins To Buy – What Is The ERC-404 Token Standard?

When Pandora hit the price charts and experienced an uptrend of 12000% within a week, the crypto community started to pay attention to a new experimental token standard, known as ERC-404. Developed by pseudonymous developers “ctrl” and “Acme,” this token standard combines the powers of token mint and burn mechanics to bring about fractional ownership of NFTs.

In this guide, we will present a comprehensive list of the top ERC-404 tokens that have rallied within a short time. Are you interested in learning more about the features and functionalities of this token standard? Feel free to read this guide to the end.

Reviewing the Best ERC-404 Coins

This section provides detailed insights into the leading ERC-404 tokens in the market. These tokens have only recently arrived, so the community is currently bullish about their fundamentals.

Pandora – Overall Best ERC-404 Token to Buy Now

Pandora is the first token created using the ERC-404 standard. The project has been described as a platform delivering an experimental token standard for creators as well as developers.

All the unique attributes that ERC-404 has introduced are encompassed within Pandora. The project delivers utilities such as functionalities, NFT protocol interoperability, native liquidity, ERC-20 protocol interoperability, and non-fungible properties.

Pandora’s launch on Uniswap V3 and Uniswap V2 quickly took the market by storm, and the token moved up by 12000% within a week. The platform has been named a game-changer by the likes of Binance. The project’s innovative fundamentals bring persistent liquidity and semi-fungibility to the crypto ecosystem, which is why it is still making the news.

Pandora’s ecosystem has grown already, and it has integrated into projects such as Metastreet, Floor Protocol, WasabiFinance, Inscribe, Binance Web3 Wallet, Particle, Hyperliquid, Vector Reserve, Teller, and Bitget Wallet.

Pandora has a circulating supply of 10,000, and its market capitalization currently exceeds $200 million. Shortly after its recent rise to its all-time high, the token’s value has retraced. However, due to Pandora being the first token of the standard, it may evolve even further, making it one of the best ERC-404 coins we have right now.

404Blocks – ERC-404 token Catering to Generative Artists 

Showcasing a minimalistic project, 404Blocks has established itself as a unique ERC-404 token for its utility to cater to generative artists. The project has been described as a unique version of ERC-404 that has adopted the DN-404 standard.

Using the novel standard, 404Blocks aims to address the shortfalls of the ERC-404 standard, creating a credible ecosystem for generative artists to monetize their works.

The artworks that 404Blocks hosts are pixelated, reminiscent of the old days of NFTs, and top players like CryptoPunks ruled the price charts.

The token was released on the day this guide was written and peaked at $13.2k before retracing to $5k. The project is currently short on key fundamentals since a significant whitepaper for the project does not exist.

There are 404 404Blocks NFTs in total, and at press time, its market capitalization is hovering above the $2 million mark. The generative NFTs aspect can make 404Blocks one of the top NFTs in the market.

DeFrogs – The First ERC-404 Meme Coin in the Crypto Space

DeFrogs has emerged as the first meme coin in the ERC-404 ecosystem. With the tagline “Reject evolution, return to frog,” this project has the same quirky attributes that made tokens like Pepe a success.

Nothing much has been described about this project, except for the fact that it now has a healthy Twitter account with close to 10k followers.

There are 10,000 DeFrogs in total, and those who want to buy it can do so from OpenSea and Uniswap.

Being the first memecoin on the ERC-404’s ecosystem, DeFrogs can potentially become the Dogecoin of the new standard. Furthermore, being accessible as a crypto and an NFT, it has already gotten a great start.

Monarch – ERC-404 Token Allowing Users to Evolve their NFTs

Monarch has become one of the best ERC-404 tokens to buy in 2024 with its unique, gamified take toward the standard.

At its heart, Monarch features a utility that allows users to evolve their NFTs by participating in competitions. Doing so has allowed it to remove predetermined rarity as a trait that depicts the value of the token. Rather, more on-chain activity enhances the rarity of the NFTs, increasing their value.

There are multiple stages involved with this NFT game. It starts with an egg hatching and then shifts to introducing a gameplay element where each user will be given a Base dragon.

Players need to participate in dungeons in order to level up their dragon type. The more activity a dragon participates in, the faster it will evolve. Evolved dragons are rare, which then determines the value of the token. This attribute can make it one of the best NFT games in the market.

There are 8,888 Monarch (MNRCH) in total, and the token’s current market capitalization stands right below the $1.5 million mark.

404 Bakery – ERC-404 Telegram Bot 

404 Bakery ($BAKE) is an ERC-404 token that powers a Telegram bot through which users can deploy ERC-404 tokens within minutes.

The official whitepaper of the project describes it as an ERC-404 factory that can be deployed on the Ethereum mainnet in one to three minutes. With this project, users can benefit from seamless token creation, quick deployment, and staking rewards.

The staking rewards come from staking $BAKE tokens. Furthermore, the platform has integrated an InterPlanetary File System to securely store the tokens and distribute metadata. The project is also keeping the community factor forward. So far, the project has attracted 3000 Telegram members and has 3333 on-chain holders.

Rugged Art – ERC-404 Token Originating from Solana-Based Flippies

Rugged Art (RUG) is an ERC-404 coin that was originally part of a Solana-based collection known as “Flippies.” Flippies was a rug-pull as the founding team disappeared in 2022, 4 months after the project’s initial mint.

The name Rugged Art comes from that. The project has taken cues from Pandora and has created an ecosystem of “NFT as meme”, which has allowed it to grow on the price charts.

The project’s unique, duck-focused artwork has gained traction as evidenced by its close to 7k followers at press time. Furthermore, the project’s unique, meme-focused attributes give it a sense of virality, making it a suitable asset to get behind. As the project progresses and the NFT market gets back on track, Rugged Art may become one of the most promising tokens of 2024.

Anon – ERC-352 Standard Token Giving Liquidity Mechanisms to ERC-404

Anon has been described in its official whitepaper as an ERC-352 standard token that builds upon the foundation of ERC-404. With ERC-352, an enhanced liquidity mechanism is introduced that resolves the rarity-related issues that exist in the current ecosystem.

Anon promises an enhanced liquidity mechanism that streamlines the process of buying and selling NFTs by utilizing whitelist functions. With its enhanced rarity functionality, Anon introduces a new way to track the rarity of an asset. The standard also reportedly strengthens the ability to fractionalize an NFT.

There are 352 ANON tokens in total, and the project’s current market capitalization is just above the $1 million mark.

YES – ERC-404 Memecoin Inspired by NPC

YES is an ERC-404 coin said to be inspired by NPC. The project introduces a new concept known as multi-fungible tokens or MFTs, bringing digital rarity and available liquidity to the ERC-404 ecosystem at the same time.

The entire imagery of this project has been inspired by the “Yes Chad” meme, which, according to the official whitepaper, transcends it from being a traditional meme coin. It is said to bring a new meme economy and will drive multiple products.

YES has a total supply of 100,000, and it currently maintains a market capitalization of just over $1.7 million.

Ethereans – On-Chain Operating System of Ethereum

Ethereans has been described as an on-chain operating system of Ethereum. The official website marks it as Ethereum’s official iPhone moment, capable of launching tokens and NFTs, creating and governing DAOs, managing treasuries, and building DeFi products.

The platform takes a no-code approach, allowing developers to just point, click, and create. Known as EthereanOS, the project has been designed to simplify standard operations on the Ethereum blockchain, making it a more streamlined ecosystem.

Some of its key features include providing a streamlined infrastructure, decentralization, and modularity.

Etherean was able to take these aspects and climb the price charts quickly. It has the biggest supply among the rest of the ERC-404 tokens – 1.17 million, and it currently stands at a market capitalization of just above $11.5 million.

Crystal – Instant Liquidity Market for NFTs

Crystal is a cryptocurrency created by Scattering.io, a blockchain project providing instant liquidity for NFTs. It is the first ERC-404 token on the Arbitrum chain and is the precursor to the upcoming SCR airdrop.

The platform’s community has been described as the most expansive in the ERC-404 ecosystem. Its primary goal is to establish Scattering.io as the premier marketplace for ERC-404 tokens.

There are 4200 CRYSTAL tokens in total, and the project’s current market capitalization stands above the $1.8 million mark.

What is ERC-404?

ERC-404 is the new experimental Ethereum standard for tokens that merges the ERC-20 and ERC-721 standards. ERC-20 standards are for crypto, and ERC-721 is meant for NFTs. By mixing them together, ERC-404 is giving rise to a semi-fungible token.

The standard has not been made official yet. Furthermore, the names of its creators have not been revealed. Currently, they are using pseudonyms ‘ctrl’ and ‘Acme’.

The entire reason behind the creation of this standard is to make the fractionalization of NFTs viable. Even though fractional NFTs exist, they are not completely tied to the assets they represent, and implementing fractionalization on an NFT smart contract is difficult.

ERC-404 addresses this issue by bringing ERC-20 and ERC-721 standards together. ERC-20 standard tokens can be fractionalized. For instance, users can buy a 0.02 ETH if they want to. By amalgamating with the standard NFT standards, non-fungible tokens can also carry these traits as default.

Another advantage that ERC-404 brings is NFT staking, through which NFTs can be staked as standard crypto assets for APY rewards.

How Does ERC-404 Work?

ERC-404 uses a burn and mint mechanism. The user must first link issued tokens to NFTs. If someone buys a full token, the NFT it is tied to is linked to the purchasing wallet. During this transaction, the crypto representing the NFT is burned.

Here are the points that will help you to fully understand how ERC-404 operates.

1. If an investor buys a whole ERC-404 token, they automatically get the NFT associated with the crypto.
2. If an investor buys a part of an ERC-404, for instance, a $0.5 PANDORA, they will get the cryptocurrency. Partial tokens don’t allow ownership of the NFT.
3. When the same investor sells the token, the NFT is burned, and the value of the token – in terms of ERC-20 – is transferred to the investor’s wallet.
4. However, the same investor can also sell the NFT associated with the token on an NFT marketplace.
5. When an ERC-404 is transferred to a wallet, the NFT is burned, and a new NFT is minted with a random level of rarity.

ERC-404 essentially gamifies the concept of asset ownership. Every transaction changes the rarity of the NFT, altering its value.

What are the Features of ERC-404 Tokens?

Listed below are some of the key features of an ERC-404 token:

Enhanced Interoperability 

ERC-404 tokens can work across various platforms because they are tied to both ERC-20 and ERC-721 standards. Their interoperability can lead to a wider adoption rate.

More Security

The makers of ERC-404 tokens have implemented better security protocols to prevent risks like fraud.

Flexible Asset Ownership

ERC-404 introduces a more flexible approach to ownership, such as fractional ownership, giving standard NFTs more use cases.

Focus on Sustainability 

ERC-404 standard is set to be designed in order to curb the environment impact of NFTs. This makes ERC-404 a green asset class, making it favorable among seekers of sustainable crypto.

Drawbacks of ERC-404 Standard

After going as high as 12000%, ERC-404’s flagship token, Pandora, dipped by 40%. The risks and drawbacks associated with the ERC-404 standard were attributed to this drop. They are as follows:

Rush Development

The standard has drawn criticism because there are insinuations that it was created in a rush. That is partly because the makers of Pandora were part of a previously rugged project that promised the same functionality but failed.

Expensive Transactions

The burning and re-minting mechanic is very expensive on the Ethereum mainnet. Furthermore, other standards offering the same functionalities, such as ERC-998 and ERC-1155, already exist, which many say are more efficient.

DN 404 Standard – Introducing More Efficiency to ERC-404

Within a few days of the release of ERC-404, another standard known as DN-404 has been released.

The project, developed by developers going by the pseudonyms “cygar” and “quit”, promises to bring the transaction fee related to ERC-404 tokens down by 20%. The key difference between DN-404 and ERC-404 lies in their contractual structure.

While ERC-404 merges ERC-20 and ERC-721 into a single contract, with DN-404, two separate contracts are designed. One is an ERC-20 token standard, and the other is a mirrored ERC-721 NFT.

With this split approach, the developers say that they can reduce the potential security risks associated with established standards.

Are ERC-404 Tokens Good Investments Right Now?

ERC-404 tokens have only just emerged. Even though they took the market by storm by gaining a lot of traction in their initial days, there are drawbacks to it that must be addressed. That being said, the new standard makes utilities like staking more accessible and adds more value to the standard assets.

These aspects can give the standard long-term perks. Furthermore, since most ERC-404 tokens have arrived with meme-based imagery, their virality factor is also high.

However, the standard is still at its starting point. While it has naturally shown a pumping action in the market, it has yet to make a mark. Furthermore, the project is still experimental and better competitive standards have emerged already. Therefore, it would be better to buy crypto assets with similar perks but established fundamentals.

For instance, Sponge V2 or SMOG match this criteria. In addition to being staking tokens, they are meme coins with more virality and have proven themselves to be valuable assets.

Sponge V2 is the second iteration of the Sponge V1 token and it is introducing robust staking and gaming fundamentals. Smog, on the other hand, has introduced a unique ecosystem that gamifies the concept of airdrops.

Our Verdict

In this guide, we have covered the best ERC-404 coins in the market and have given an explanation of what ERC-404 is. This novel standard has the possibility to improve the blockchain adoption rate if it addresses its current shortfalls. That said, the staking attributes and meme-based look of most of the ERC-404 tokens are commendable.

Investors looking for meme coins with staking attributes are better off investing in Sponge V2 and SMOG.

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