ERC-404 is an emerging Ethereum token standard that originated from the "Pandora project" launched by an anonymous team on February 2nd. Upon its launch, it immediately garnered widespread attention and discussion in the crypto market. The term "404" is inspired by the web error code "404 Not Found," implying an element of the unknown. This suggests that the team aims to create a novel token standard with an exploratory nature, unafraid of future challenges.
However, ERC-404 is not officially recognized by Ethereum as a token standard, which increases the risk since this standard has not undergone the rigorous review process of the EIP (Ethereum Improvement Proposal) process. This process provides security, practicality, and compatibility guarantees through community discussion and review. Additionally, the experimental label attached to ERC-404 itself poses a risk. This status signifies that the standard is still in the development phase and may undergo significant changes. Projects adopting ERC-404 may face challenges in adapting to these changes, leading to instability or compatibility issues. On the other hand, there are also risks associated with ERC-404 transaction methods. Its emergence has raised concerns among investors about "rug pulling" and high gas fees. With the increasing number of projects and market participants, there is a possibility of malicious market manipulation by project teams or sudden exits. So why is this concept so popular right now?
However, ERC-404 is not officially recognized by Ethereum as a token standard, which increases the risk since this standard has not undergone the rigorous review process of the EIP (Ethereum Improvement Proposal) process. This process provides security, practicality, and compatibility guarantees through community discussion and review. Additionally, the experimental label attached to ERC-404 itself poses a risk. This status signifies that the standard is still in the development phase and may undergo significant changes. Projects adopting ERC-404 may face challenges in adapting to these changes, leading to instability or compatibility issues. On the other hand, there are also risks associated with ERC-404 transaction methods. Its emergence has raised concerns among investors about "rug pulling" and high gas fees. With the increasing number of projects and market participants, there is a possibility of malicious market manipulation by project teams or sudden exits. So why is this concept so popular right now?
