ERC-404: Next 100X Cryptos?! What You Need To Know!

A brand new asset class is taking crypto By Storm ERC 404 tokens have only been with Us for a few weeks and have already seen Some parabolic gains despite them being Controversial to say the least Controversial overbearing that's why in Today's video we'll be looking at this All new token standard how it could Reshape the nft industry and what it Could mean for the future of the crypto Market market so if you actively trade Nfts or are considering picking some up As the bull market gathers Pace then This is a video you cannot afford to Miss this time we can't afford to Miss now before we get started I'll just Reiterate that ERC 404 tokens are brand New and consequently come with a high Level of risk therefore it's important To point out that I am not a financial Adviser and nothing in this video should Be considered Financial or invest M Advice and given the risk levels Involved here I think I'll just point That out again nothing in this video is Financial advice I'll also point out That there will be a few projects Mentioned throughout this video in order To help illustrate how this all new Asset class works these projects are Only mentioned for the sake of this Illustration none of these are Endorsements and the coin Bureau team is

Not affiliated with any of them in any Way and if you're wondering what cryptos The members of the coin Bureau team are Holding as part of their portfolios then Consider joining the coin Bureau Club There you'll find breakdowns of the Coins and tokens we're holding along With reviews of some of the hottest Small cap altcoins on the market you'll Also be spoiled rotten with the research And insights from the team here and You'll have access to an exclusive Discord where you can chat to us and Your fellow members of the CBC Elite the Link to all all of that is in the Description so with that all cleared up Let's begin shall we now ERC 404 is a Brand new ERC token standard that's been Blowing up over the last few weeks now In case you were wondering ERC stands For ethereum request for comment and is The standard that defines a particular Asset class it's ethereum's version of a Request for comment or RFC which is a Concept introduced by the internet Engineering task force a well-known Example of an ethereum request for Comment is erc20 which is by far Ethereum's most commonly used standard The erc20 standard is used for issuing Fungible tokens on ethereum in case you Weren't already aware fungible means of The same interchangeable value so for Example I could give you one eth in

Exchange for your one eth and by the end Of it we'd each still hold the same eth Value as each eth is worth the same Amount now erc20 tokens can be created For a plethora of different use cases But they all require a specific Collection of code in order to run this Shared framework is the reason why dexes Like Unis swap can detect tokens when You copy and paste just the contract Address into them another widely used Token standard meanwhile is ERC 72 one The non-fungible token or nft standard Unlike erc20 tokens the thing that makes Nfts non-fungible is their uniqueness And individual value an easy metaphor For this would be with paintings each Individual painting is by nature one of A kind with each one having different Unique properties and values you Therefore wouldn't be able to say that One Mona Lisa is worth one of vanov Sunflowers for example and by the the Way if you're enjoying the video so far Be sure to hit that like button to give It a boost anywh who similar to erc20 Tokens the 721 token standard also needs To contain specific code in order to Allow for nfts to be built the Difference here is that erc721 is coded In such a way that the nfts are randomly Generated with each one only being Minted once this is what makes them Unique with each nft having different

Features that gives them their Associated Rarities and values what this Means is that although both erc20 tokens And erc721 nfts are both great uses for Blockchain technology they are each Their own separate asset class but what If they didn't have to be well this is Exactly what the ERC 44 token standard Is all about ERC 404 tokens were created As a means to combine tokens and nfts to Create yep you guessed it tokenized nfts But where did this idea come from and What does it all mean it turns out that The answer to 404s Origins is about as Wild west as you could get so officially The ERC 404 token standard was created By a project called Pandora only it Didn't exactly start there Pandora is a Project spearheaded by two pseudonymous Developers going by the names control And Acme along with another developer Named CERN seal on the 1st of February Control shared a thread on X that Explained just how 404 came into Existence and honestly you couldn't make This up basically control along with Many other degens had aped into a Previous project named Emerald this Project claimed to present a way for Erc20 tokens and ERC 721 nfts to work Together only before it had a chance to Really take off it got rucked as it Turns out Emerald's so-called developer Had actually used chat GPT to create

This mythical token nft hybrid his Motive he was broke the thing is as Problematic as Emerald's code was and as Shady as the so-called developer was the Concept of integrating nfts and ERC 20 Tokens had real promise so as control Explains he reached out to this wannabe Dev and not only did control offer to Help fix Emerald's code he also put him In touch with amme an ex coinbase Developer completely for free that is Not an opportunity that comes around Very often and definitely one you Wouldn't want to turn down well it was Turned down instead emeralds well Honestly it feels wrong to call him a Dev at this stage but anyway suggested That they instead just relaunch Emerald With a few quick bug fixes again for a Quick Buck realizing that this guy was Clearly in over his head control got in Touch with Acme and sun to take the idea And run with it properly they came Together to create Pandora the first Real project to fulfill this Niche According to an announcement thread on Their X page quote Pandora is the first Token built on the ERC for 4 token Standard an experimental token standard That we have open sourced for creators And developers alike as you might have Already guessed Pandora named the token Standard this way as a nod to the error 404 message found when trying to access

Something that cannot be retrieved on The internet in their own words quote It's a naming convention that was Designed to make ERC 404 easier to Inuit It as a kind of token with an Experimental design that we knew would Confuse many protocols and daps on Launch as a result of its experimental Nature it's worth pointing out however That whilst this token standard is fresh Out of the gates the concept of Fractionalized nfts has actually been Around for some time in fact we did a Video back in March 2022 that covered Exactly that link below if you're Interested anywh who ERC 404s work by Essentially breaking down an nft into Smaller fractions that take the form of Erc20 tokens similar to how you can Break down one whole BTC into Satoshi Now you may be wondering what the point Of doing this would be so let's pretend For a moment that you hold one nft say a JPEG of a rather sophisticated looking YouTube presenter with laser eyes called I don't know guy with laser this nft Would have a price attached to it which Ideally would be more than what you had Paid for it yourself for the purpose of This example let's say that this nft is Is worth $1 million sounds pretty Reasonable to me if I do say so myself The problem here though is that you then Have to wait for another nft Enthusiast

To have the same level of interest in Guy with laser that you had when you Decided to ape in in the hope that they Are willing to throw that kind of money At it and even in crypto there aren't That many people with a Millie in their Back pockets these days anyway the Result of this situation is that nfts Can quickly become El liquid as they Stay on the market for unpredictable Lengths of time waiting for one of the Very limited number of investors with Enough Capital to come along this IL Liquidity combined with an Oversaturation of the nft space is the Main reason why around 95% of all nft Projects are now dead with many people Holding on to jpegs that are now all but Worthless but let's say that this Million doll nft could be split into 100,000 pieces suddenly a lot more Buying opport opportunities become Available to ordinary retail investors Like you and me as people realize that In order to get exposure to guy whiff Laser they only need to invest $10 it quickly becomes clear then why This concept has gotten so many Investors fired up now it is worth Noting that if you did decide to split Guwi laser into fractions and then sell Off 20% of these erc20 tokens you would Only hold 80% of the overall nft and Unless you own the whole thing you don't

Technically own it at all that's because Once you sell a portion of an ERC 404 Token the nft that's associated with it Gets burned this nft would only be Minted and returned to you once you'd Manage to accumulate the remaining 20% To make the nft whole again to be clear Tokens Can Be huddled and the associated Nft won't change however if an nft is Burned and remitted it will be a Different nft with a new variety of Features and Rarities this makes Rarity Rrolling an exciting thing for some Investors who see it as something like a Game Pandora is looking to alter this Burning and minting mechanism though as Explained in a GitHub repository Highlighting version 2.0 of the ERC 404 Standard the change will see nfts Transferred directly to a wallet instead In any case the ERC 404 standard has Been mired in controversy This is mainly because it's still Completely experimental at this point Having gone through none of the usual Steps of being approved as part of an EIP for reference EIP stands for Ethereum improvement proposal and is the Method whereby developers can suggest Upgrades and features to be implemented On the ethereum network the 404 standard Never actually went through this process Which means it was never verified nor Approved put simply 404 is not yet an an

Official token standard nevertheless Crypto and nft enthusiasts alike have Quickly latched on to the potential that This product can bring in fact within Just 5 days of Pandora's launch the Project had gone up by over 180x however before you let your fomo Get the better of you there are a few Concerns to keep in mind as the 404 Space becomes more and more heated up Bad actors will be looking to take full Advantage there's no doubt that we will See plenty of scams and rug PS popping Up as time goes on those with the Highest levels of fomo will likely be The worst impacted so if you are Planning on picking up some of these Tokens please proceed with caution also Recall that the 404 token standard has Never been officially approved or Authorized this means that nobody can Say for sure exactly what will happen With them in the future put simply the Chances that 404s could suffer an Exploit of some kind are at this point Unknown in case it wasn't already clear An unknown risk is by its very nature a Very high risk in itself it's also worth Reiterating that ERC 404s are brand new And highly speculative the vast majority Of these projects adopting the ERC 404 Token standard have market caps in the Single million dollar range sometimes Not even that this makes the price

Action of these tokens extremely Volatile and if you want evidence of This look no further than tracking sites Like coin market cap or coin gecko which Show you that prices can move up or down By as much as 40% in a single day this Makes investing in these tokens Analogous to well memec coin trading and You could even argue that the fear of The unknown actually makes 404 tokens Even more of a Gamble and by the way we Recently did a video dedicated to Spotting meme coins with potential the Link is below I Digress now there's also the possibility That the hype we're seeing could die Down very quickly ERC 404s are highly Speculative at the moment in large part Because well they're the latest shiny Object in the space this makes them Entirely driven by retail investors who Are typically much more emotional and Irrational in their trading than Institutional investors There is a chance that these retail Investors could rotate away from 404s Once the next shiny object comes along And if you're not paying enough Attention you could be left holding the Bag now if none of what we've just gone Over has put you off and you're ready to YOLO yourself into some 404s then you Probably want to know where to find them Well as it happens there are two options

For you to do this the first option is To buy the nft itself outright and this Can be done in the same way as buying Normal erc721 nfts by using marketplaces Like openc blur. magic Eden and others However if you want to buy the Fractionalized erc20 tokens instead this Can be done in the same way that you Would buy other erc20 tokens by using Aex such as uni swap Sushi swap or 1 in And so on searching for the most Promising project within this Niche is Tricky at this stage but here are a few Tips that could help you along the way First take a look at projects listed on Coin market cap and coin gecko this will Immediately help reduce some of the Risks mentioned earlier as tracking Sites will have certain criteria that Need to be met before projects can be Listed from there go through each Project and look at some key metrics Market cap trading volume liquidity Price history all that good stuff pay Extra attention to which Exchange Changes are listing the project as these Would have imposed even more listing Criteria then take a look at the nfts Themselves do they look like they'll Gain any traction or are they similar to Some of the atrocities that we've seen In the past would you be a proud owner Of this artwork and could other people Feel the same way you also want to make

Sure there's only one of each nft in Existence with no options to Mint more In the future and remember Look for anything that you think could Be a red flag bad artwork Shady teams Poorly designed websites basically Anything that looks like a project That's just jumping on the bandwagon for Some quick gains another approach to Take is similar to the memec coin Approach that we highlighted in our Recent video which I'll remind you can Be found Below take a look at already existing Nft projects and see if there are any Signs that indicate plans to use the ERC 404 Tech in the future as this could Bring in a renewed wave of Interest Whichever approach you take though the Risks you're taking on should always be At the front of your mind so it is extra Important to Dy before making any Decisions and of course don't invest More than you can afford to lose now While ERC 404 is an unofficial token Standard at this stage the opportunities It brings to the nft space Are pretty promising consider this There's an nft that you've fallen in Love with but it costs a few thousand And you can only afford to invest a few Hundred every month well 404 means that You could DCA your way into holding that Nft or a significant chunk of it over

Time you might then want to DCA out of The nft if you felt like the price still Had some room to grow but wanted some Extra liquidity in the meantime with With ERC 404 that is entirely possible And if later on you wanted your nft back In its entirety you only need to buy Back a portion of it rather than paying For the whole thing this makes 404 a Very exciting prospect and it's worth Remembering that erc's are only used on Ethereum so it wouldn't be at all Surprising if we see other developers Use the same technology on different Blockchains it is open source after all With the recent hype around Bitcoin Ordinals we can probably expect to see Something like BRC 404 implemented Before too long and of course these Versions will only see the overall 404 Space improve over time developers will Be able to flesh out the concept by Adding to it with their own ideas some Of which maybe won't work so well but Others which could be gamechanging if 404s are accepted as an official token Standard meanwhile we could see a surge In development as more projects adopt This technology and some projects could Even find themselves being listed on Centralized exchanges such as coinbase Or binance so regardless of how Controversial the ERC 404 standard has Become there's no denying that it's a

Fascinating concept and one that's Definitely worth keeping on your radar If you're an avid nft Trader then you'll Probably appreciate more than most just How much more tradable they could become And some might even argue that the nft Space has been sleeping while it waits For something like this to appear this Makes 404s perhaps one of the most Important developments in the entire nft Ecosystem could they be the Catalyst to Finally wake it Up and that's all for today's video Folks but we want to hear now from you What do you think the future of ERC 404s Will look like do you think this Niche Has potential or is it just another Shiny object to distract us until the Next one comes along drop your thoughts In the comment section below now if you Found this video informative then smash That like button to let us know if you Want more educational crypto content Then be sure to hit that subscribe Button and ping that notification Bell So you don't miss our next video if you Want to help others learn then take a Second to share this video with them and If you want some of the hottest crypto Info delivered straight to your inbox Why not sign up to our free Weekly Newsletter plus if you're looking to Maximize your crypto gains then check Out the coin Bureau deals page because

It's got trading fee discounts of up to 60% and sign up bonuses of up to $50,000 on the best crypto exchanges as Well as the biggest discounts on the Best hardware wallets too the link will Be in the description okay thank you all So much for watching and I'll see you in The next one this is Guy signing off

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