Tag Archives: fad

ERC-404: Fad or Game-Changer?

ERC-404: Fad or Game-Changer?

Ethereum is a platform that enables developers to create decentralized applications (DApps) using smart contracts, which are self-executing code that can enforce rules and logic. One of the most popular types of DApps on Ethereum are those that deal with tokens, which are digital assets that can represent anything from currencies to collectibles.

There are different standards for creating tokens on Ethereum, such as ERC-20 for fungible tokens and ERC-721 for non-fungible tokens (NFTs). Fungible tokens are interchangeable and divisible, meaning that one token of the same type equals another. For example, one ether (ETH) is equal to another ether. NFTs are unique and indivisible, meaning that each token has its own identity and characteristics. For example, one CryptoKitty is different from another CryptoKitty.

However, there are some limitations and challenges with these existing standards. For instance, ERC-20 tokens lack NFTs’ metadata and customization features, while ERC-721 tokens suffer from low liquidity and high transaction costs due to their rarity and indivisibility. Moreover, there is no easy way to bridge the gap between fungible and non-fungible tokens or create hybrid tokens with both properties.

A New Standard

This is where ERC-404 comes in. This is an unofficial token standard proposed by the Pandora team, a group of developers who launched an NFT collection based on this standard. ERC-404 aims to combine the best of both worlds by treating tokens as fungible or non-fungible, depending on the context and the user’s preference. It also enables unique burn and mint mechanics, creating interesting dynamics and incentives for token holders.

One of the main features of ERC-404 is that it allows tokens to be fractionalized and merged. This means a user can buy or sell a fraction of a token instead of buying or selling the whole token. For example, if a user owns one Pandora token, an ERC-404 token, they can sell 0.1 of it to another user and keep the remaining 0.9. The 0.1 token will still have the same metadata and characteristics as the original token but not the corresponding NFT attached to it. The NFT will only be minted when the user owns a full token or merges their fractions to form a full token.

This feature can create more liquidity and accessibility for NFTs, as users can trade them in smaller units at lower prices. It can also create more diversity and variety for fungible tokens, as users can customize them with different metadata and attributes. For example, a user can create a token representing their favorite sports team and add their logo, colors, and stats. They can then trade it with other fans or use it to access exclusive content or rewards.

Another feature of ERC-404 is that it allows tokens to be burned and minted in different ways. This means a user can destroy their token and create a new one with different properties or create a new one from scratch. For example, if a user owns a Pandora token representing a dragon, they can burn it and mint a new one representing a unicorn. They can also mint a new token without burning an existing one, as long as they pay a fee to the Pandora contract.

This feature can create more innovation and experimentation for token creation, as users can explore different possibilities and combinations. It can also create more value and scarcity for tokens, as users can create unique and rare tokens with high demand and low supply. Another example is a user can create a token that represents a celebrity and add their signature, photo, and voice to it. They can then sell it to their fans or use it to access exclusive content or rewards.

Opening Pandora’s NFT

ERC-404 is a novel and exciting token standard that can potentially revolutionize Ethereum’s token economy. It can create more flexibility and functionality for both fungible and non-fungible tokens, and enable new use cases and applications for them. It can also create more opportunities and challenges for token creators and users, as they can experiment with different token designs and dynamics.

Remember that this is also a very experimental and risky token standard that the Ethereum community has not officially approved or adopted. As mentioned in my blog, it has not been thoroughly tested or audited, and it may have security vulnerabilities or technical issues. It may also face legal or regulatory hurdles, as it may violate intellectual property rights or other laws. Moreover, it may not be compatible or interoperable with other token standards or platforms and may face competition or opposition from other token projects.

Pandora is the first and most prominent token that uses ERC-404, and it has been experiencing a massive surge in popularity and price in the past few days. CoinMarketcap has a separate section called ERC-404 on its main page, with other trending categories such as Solana, Gaming, and DePin.

Pandora is a collection of 404 unique NFTs that represent different mythical creatures, such as dragons, unicorns, and phoenixes. Each Pandora token can be fractionalized and merged and can be burned and minted to create new NFTs. Pandora also has a governance system that allows token holders to vote on the future development and direction of the project.

It has attracted much attention and hype from the crypto community as it showcases the potential and innovation of ERC-404. It has also attracted a lot of speculation and investment from the crypto market, as it has seen a huge increase in its value and volume. According to CoinGecko, Pandora has a market cap of over $175 million and a price of over $16,000 per token as of February 7, 2024. It has also seen a growth of over 2000% in the past week, making it one of the best-performing tokens in the crypto space.

However, Pandora is also a volatile and speculative token that has not proven its long-term viability or sustainability. It has not established a clear vision or roadmap or delivered any concrete products or services. It has also faced much criticism and skepticism from the crypto community, as it has been accused of being a scam, a Ponzi scheme, or a copycat of other NFT projects. It has also faced much competition and pressure from other token projects, especially those that use official or more established token standards.

In conclusion, ERC-404 and Pandora are fascinating and controversial token projects that have generated a lot of buzz and debate in the crypto world. They have both demonstrated the power and potential of token innovation and experimentation and exposed token adoption and regulation risks and challenges. They have created much value and opportunity for token creators and users. Still, they have also created a lot of uncertainty and speculation for token investors and traders. They have both been bullish and excited in the short term but also uncertain and unproven in the long term.

My opinion on ERC-404 and Pandora is that they are worth watching and learning from but worth being cautious and critical of. I think they are both game-changers in the token space and both fads in the token market at this point in time. So, do you think it is a game-changer or a fad?

Source: https://www.blockhead.co/2024/02/17/erc-404-a-game-changer-or-a-fad/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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The NFT Crash: How a Crypto Fad Turned Into a Flop and How You Can Survive It

The NFT Crash: How a Crypto Fad Turned Into a Flop and How You Can Survive It

NFTs, or non-fungible tokens, were once hailed as the next big thing in the crypto world. They were supposed to revolutionize the way we create, own, and trade digital assets, from art and music to games and memes. They were supposed to empower artists and creators and democratize the digital economy. They were supposed to make millions for savvy investors and collectors.

But now, it seems that the NFT craze has come to an abrupt end. According to a report by DappGambl, a website that analyzes the crypto gambling industry, 95% of NFT collections have a market cap of zero. That means that the vast majority of NFTs are worthless and that millions of people who bought them have lost their money.

How did this happen? How did a crypto fad turn into a flop? And what does this mean for the future of NFTs and the cryptocurrency industry?

The Rise and Fall of NFTs

NFTs are essentially digital certificates of ownership recorded on a blockchain, usually Ethereum. They can represent any unique digital asset, such as an image, a video, a song, or a tweet. Unlike traditional digital files, which can be copied and shared endlessly, NFTs are supposed to be scarce and verifiable, giving them value and authenticity.

The concept of NFTs is not new. The first NFTs were created in 2017, with projects such as CryptoKitties and CryptoPunks. However, it was not until 2021 that NFTs exploded in popularity and price. Driven by the hype and speculation around crypto assets, NFTs attracted celebrities, artists, influencers, and investors who saw them as a new way to express themselves, support causes or make profits.

Some of the most notable NFT sales in 2021 include:

These astronomical prices created a frenzy in the NFT market, as more and more people wanted to get in on the action. New platforms, projects, and collections emerged every day, offering various types of NFTs, from art and music to sports and gaming. The supply and demand of NFTs skyrocketed, reaching a peak in August 2021, when the monthly trading volume of NFTs hit $2.8 billion.

However, this boom was not sustainable. As more and more NFTs flooded the market, their quality and originality declined. Many NFTs were simply copies or variations of existing works or concepts with little or no artistic or creative value. Many NFTs were also overpriced or overhyped, with unrealistic expectations or promises. Many NFTs were also vulnerable to technical issues or security breaches, such as hacking or minting errors.

As a result, the demand and interest for NFTs plummeted. Many buyers realized they had bought worthless or dubious assets they could not sell or use. Many sellers realized that they had missed the opportunity to cash out or diversify their portfolios. Many platforms realized that they had failed to attract or retain customers or partners.

According to DappGambl’s report, out of 73,257 NFT collections that it analyzed,

  • 69,795 collections have a market cap of zero ETH.
  • 15% of collections have less than 10 percent ownership.
  • Only 21% of collections have full ownership.
  • 18% of top collections have a floor price of zero.
  • 41% of collections are priced between $5 and $100.
  • Less than 1% of collections are valued above $6,000.

These statistics show that the majority of NFTs are worthless or unsold and that the NFT market is in a state of collapse. The report also predicts that the NFT market will continue to decline, as more and more people lose interest or confidence in NFTs.

The Future of NFTs

Does this mean that NFTs are dead? Not necessarily. While the NFT craze may have been a bubble that burst, the underlying technology and concept of NFTs still have potential and value. NFTs can still offer a novel and innovative way to create, own, and trade digital assets, as well as to support artists and creators and to democratize the digital economy.

Major challenges and limitations

However, for NFTs to survive and thrive, they need to overcome some major challenges and limitations. One of these challenges is the lack of clear and consistent regulation and standards for NFTs. This creates uncertainty and confusion for both creators and consumers, as well as for regulators and policymakers.

NFTs are currently governed by a patchwork of laws and regulations that vary across countries and jurisdictions, making it difficult to determine the legal status, rights, and obligations of NFTs and their owners. Moreover, there is no widely accepted or enforced standard for verifying the authenticity, provenance, and quality of NFTs, which leaves room for fraud, plagiarism, and manipulation.

Another challenge is the low quality and originality of many NFTs. This dilutes the value and appeal of NFTs and undermines their credibility and legitimacy. As the NFT market grows and attracts more participants, there is an influx of low-effort, low-quality, or copied NFTs that flood the market and saturate the demand. These NFTs not only reduce the scarcity and uniqueness of NFTs but also erode the trust and confidence of consumers and collectors who may question the artistic merit and cultural significance of NFTs.

A third challenge is the high volatility and speculation of the NFT market. This exposes investors and collectors to significant risks and losses and discourages long-term appreciation and adoption of NFTs. The NFT market is driven by hype, FOMO (fear of missing out), and celebrity endorsements, which create artificial demand and inflate prices beyond their intrinsic value. The market is also prone to crashes, bubbles, and scams, as seen in the recent decline of NFT sales and prices after a record-breaking peak in March 2023. These factors make the NFT market unpredictable and unstable, deterring potential buyers and sellers who seek more reliable and sustainable returns on their investments.

The last challenge is the limited accessibility and usability of NFTs. This requires technical knowledge and skills, as well as crypto wallets and platforms, to create, buy, sell, or use NFTs. NFTs are not easily accessible or usable for the average person who may not be familiar with the concepts and technologies behind them. To participate in the NFT market, one needs to have a crypto wallet that supports the specific blockchain network that hosts the NFTs, as well as enough cryptocurrency to pay for the transaction fees that can be quite high depending on the network congestion. Moreover, one needs to use specialized platforms or marketplaces that facilitate the creation or exchange of NFTs, which may have different features, functions, and interfaces.

Take proactive and collaborative actions

To address these challenges and limitations, the NFT industry and community need to take some proactive and collaborative actions. These actions include developing and adopting best practices and guidelines for creating, valuing, verifying, and marketing NFTs, as well as for ensuring their security, privacy, and interoperability.

These standards would help to establish a common framework and understanding for NFTs, as well as to protect the rights and interests of both creators and consumers. They would also facilitate the exchange and transfer of NFTs across different platforms and networks, as well as to prevent fraud, theft, or misuse of NFTs.

Another action that is needed is to explore and implement more sustainable and efficient solutions for producing and storing NFTs, such as using renewable energy sources or alternative blockchains. These solutions would help to reduce the environmental impact and cost of NFTs, as well as to improve their performance and scalability. For example, some blockchains use a consensus mechanism called Proof-of-Stake (PoS), which does not require intensive computation or electricity to validate transactions and secure the network.

Furthermore, the NFT space needs to foster more creativity and diversity by encouraging more original and innovative works or concepts, as well as more representation and inclusion of different voices and perspectives. These efforts would help to enhance the quality and originality of NFTs, as well as to showcase the artistic potential and cultural value of NFTs. They would also attract more audiences and participants to the NFT market, as well as to foster more collaboration and inspiration among creators.

Additionally, the NFT industry and community need to promote more education and awareness about the benefits and risks of NFTs and their legal and ethical implications for both creators and consumers. These initiatives would help to inform and empower both creators and consumers about their rights and responsibilities regarding NFTs, as well as to provide them with the necessary knowledge and skills to create, buy, sell, or use NFTs. They would also help to dispel some of the myths and misconceptions about NFTs, as well as to address some of the social and moral concerns that may arise from NFTs.

Moreover, the NFT industry and community need to enhance more integration and compatibility of NFTs with other platforms and applications, such as social media, gaming, e-commerce, or art. These integrations would help to increase the accessibility and usability of NFTs, as well as to expand their use cases and functionalities. They would also help to create more value and demand for NFTs, as well as to enrich the user experience and engagement with NFTs.

Finally, the NFT industry and community need to work with the right partners who can bring extraordinary results, too. For example, Oracle Red Bull Racing and Bybit launched the Velocity Pass in this quarter, and they have over 1000ETH trading volume on secondary marketplaces, including Bybit NFT, OpenSea, and Blur, since its release. The latest in its series, called Pursuit by Per Kristian Stoveland, launched on 21 September, has more than 125ETH in volume, with floor price of almost five times.

The Bottom Line

The NFT crash is not the end of the story. It is a wake-up call for the NFT industry and community. It is an opportunity to learn from the mistakes and failures of the past. It is a chance to improve and innovate for the future.

NFTs are not just a crypto fad. They are a crypto phenomenon. They have the potential to transform the way we create, own, and trade digital assets. They have the potential to empower artists and creators. They have the potential to democratize the digital economy.

But they also have the potential to fail. They have the potential to harm the environment. They have the potential to deceive investors. They have the potential to disrupt society.

The future of NFTs depends on how we use them. The future of NFTs depends on us. We will survive it.

 

 

Source: https://www.techopedia.com/the-nft-crash-how-a-crypto-fad-turned-into-a-flop-and-how-you-can-survive-it

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Podcast on Spotify: Anndy Lian Talks about “Is crypto a fad or for the future?”

Podcast on Spotify: Anndy Lian Talks about “Is crypto a fad or for the future?”

In Wealth Secrets second episode, we delve into the world of cryptocurrency. Our guest Anndy Lian is an experienced professional in the space. He is an Advisory Board Member of Hyundai DAC Tech (the blockchain arm of Hyundai Motor Group). On this Pocast, we discuss on- “IS CRYPTO A FAD OR FOR THE FUTURE”, where we provide some clarity on cryptocurrency in general and hopefully answer pressing questions on your mind. His impressive resume speaks for itself.

  • Advisory Board Member of Hyundai DAC Technology (Blockchain arm of Hyundai Motor Group)
  • Blockchain Advisor of Asian Productivity Organisation(APO).
  • Member of Gyeongsanguk-do Blockchain Special Committee Government of the Republic of Korea.
  • Book Author of “Blockchain Revolution 2030”
  • Chairman of Chairman of Korea eSports Industry Association (Singapore Chapter)
  • Former Chairman (Asia), DECENT Foundation
  • Former CEO of LINFINITY “World’s First Distributed Supply Chain Platform”
We covered these and some further questions:
1. Is any digital currency a cryptocurrency? What are stable coins?
2. Who are the major players of crypto market?
3. Why the hype about cryptocurrency? Is it worth it?
4. How is cryptocurrency solving the problems associated with fiat?
5. Should crypto be taxed? What are some regulations that you think may not favour cryptocurrencies going forward? How can the government and policymakers help preserve and stabilize the crypto community?
Catch it on Spotify:
Or on Podbeab:

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j