BingX Academy ERC404 Pandora Coin Price Prediction and Buying Guide

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ERC404 Pandora Coin Price Prediction and Buying Guide

Empowering Traders 2024-02-06 17:40:34

Pandora Coin is the Leading Token of ERC404

 

The biggest issue with NFTs is their liquidity. Currently, there are three ways to address the liquidity problem of NFTs:

 

  • 1. NFT Fragmentation. Using ERC721 protocol.
  • 2. Creating tokens based on NFTs' names. Using ERC20 protocol.
  • 3. NFT Staking. Provided by most major NFT markets, such as NFTB.

 

The most common methods are to either fragment NFTs or directly create tokens based on NFTs' names, using the ERC721 or ERC20 protocols, respectively. The problem with NFT fragmentation via ERC721 is that the fragments are based on a fixed NFT, making the fragments themselves challenging to trade.

 

ERC20 tokens created from NFT names have no direct relationship with the original NFTs and their prices do not affect each other.

 

What's ERC404 Pandora Protocol

 

To address the issues with ERC721 and ERC20, maybectrlfreak and former Coinbase engineer 0xacme created the ERC404 protocol, which fragments NFTs into tokens. Unlike ERC20 and ERC721, the ERC404 protocol allows for the complete or partial fragmentation of NFTs. In theory, a certain quantity of ERC404 tokens can be used to assemble a new NFT. Creating a new NFT leads to the destruction of a corresponding quantity of tokens, and vice versa. This offers tremendous potential for the ERC404 protocol.

 

The ERC404 protocol is considered a significant innovation in the NFT space as it preserves the collectible value of NFTs while enhancing their liquidity. It is expected that many NFTs will adopt the ERC404 approach to increase liquidity. For example, when an investor finds that an NFT they've minted is not what they desired, they can choose to use ERC404 to fragment the NFT and trade tokens in the liquidity pool to create a new NFT. In traditional methods, you would need to exchange NFTs of equivalent value. Alternatively, some investors may find individual NFTs too expensive and choose to hold tokens, effectively owning fragments of NFTs.

 

The ERC404 protocol is essentially a hybrid of ERC721 and ERC20. Pandora is the first token based on the ERC404 protocol and is often referred to as the ERC404 Pandora protocol. The protocol is currently open source, allowing any NFT to adopt it for tokenizing a specific quantity of NFTs.

 

Challenges of ERC404

 

To fragment NFTs into tokens using ERC404, a smart contract needs to be created, and this smart contract is unique. Multiple NFTs cannot create multiple smart contracts. This requires a consensus within the community of NFT holders, where some users must be willing to take their NFTs out for tokenization. The specifics of how tokenization is done can be determined through community consensus. If determined by a voting mechanism where more than half must vote, the time required for this process depends on the final outcome of the community vote.

 

Since NFTs are fragmented into tokens, there is a royalty fee when selling tokens on decentralized exchanges (DEX). Selling NFTs also incurs a royalty fee. This is where holding tokens has a significant advantage when trading on centralized exchanges (CEX) - there are no royalty fees for token trading on CEX.

 

Valuation of Pandora Token

 

A total of 10,000 Pandora NFTs were issued, with over 50% of Pandora being burned to generate Pandora tokens. The token's supply is 8,000 tokens.

 

 

Actual NFTs sold on Opensea and Blur are around 4,000. The floor price of NFTs is 2.68 ETH, 6,200 USD, with the highest price at 40 ETH, 92,000 USD.

 

 

So, if we calculate based on the floor price of 2.6 ETH, the minimum price for Pandora tokens is currently at 4,000 USD, and if we calculate based on the highest price, it's at 57,835 USD.

 

BingX has already listed the token, with a price of 5,835 USD. There is still a potential for roughly a 10x increase in price, but the risk is relatively high. Pandora itself is both a protocol and a token, and other NFTs adopting the ERC404 protocol may not contribute significantly to Pandora's value. Therefore, Pandora's value could be extremely high or practically worthless, similar to the attributes of NFTs themselves. With NFTs gaining popularity recently, as NFTs begin to use ERC404, the price of Pandora, as the leading token of the ERC404 protocol, is expected to rise.

 

How to Buy ERC404 Pandora

 

Pandora is both a token and an NFT. To purchase complete NFTs, you can buy them on NFT trading platforms such as Blur, Opensea, and others. To buy tokens, you can purchase them on the BingX spot market.

 

The advantage of buying and selling tokens on the BingX spot market is that there are no royalties. However, when selling tokens on a DEX, royalties apply because each transaction needs to be recorded on the blockchain. Since royalties can be relatively high, it is recommended that users who have already purchased tokens on a DEX consider transferring the tokens to BingX for selling. Additionally, when transferring Pandora tokens from BingX to a personal wallet, there will be corresponding royalties deducted because transactions require blockchain recording.

 


Disclaimer:

 


The above content does not constitute any investment advice. Investing in cryptocurrencies is risky, and investing in Pandora tokens and NFTs carries higher risks, possibly resulting in the loss of the entire capital. Investors should conduct their own research (DYOR). BingX is not responsible for any losses incurred from purchasing tokens related to ERC404.

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