This Spring Festival, basically people in all industries are anxious, only people in the crypto circle are excited~
A certain great master who gained 7,000 times in the inscription cycle also lamented that on the last day of the Spring Festival holiday, it felt like he was in another world.
For those of you who didn’t pay attention to the crypto community during the Spring Festival, I’d like to sort out what happened in the past few days.
01. One week before the Spring Festival, Pandora’s box was opened
On February 2, a protocol called ERC404 came out. This protocol is actually super simple. It just does this:
Build a corresponding pool for the collection of NFTs. Trading NFTs means trading coins, and trading coins means trading NFTs.
To make it easier to understand, if each NFT small picture only issues one ERC20 token, this is what it looks like:
When the currency holding address is less than one token, there will only be coins; when the currency holding address is greater than one token, there will be both pictures and coins.
When a holder holds 1 token and chooses to sell part of it, an NFT will be burned randomly.
When a holder buys tokens, an NFT will be minted for each integer.
The low liquidity problem that NFT has been criticized for in the past has been solved so simply.
Pandora is the first ERC404 token. When I learned about it, it was already worth two to three thousand US dollars. It once jumped to 30,000 US dollars, and now it has dropped to more than 10,000 US dollars.
02. The native dog does not celebrate the Chinese New Year, so projects will be intensively developed
I don’t know why, maybe it’s because the protocol is simple. Binance and OKX almost immediately supported the ERC404 protocol in their respective Web3 wallets, and they also launched several strange projects:
Among the list of coins on the list, except for the first Pandora, which is easy to understand as Dragon One, the other tokens are all small plates.
Defrogs can barely be regarded as the second largest company, with a peak market value of 30 million, but now it has fallen below 10 million.
The others are very miserable, with a market value of more than two million. . . To be honest, many projects I know now have stronger liquidity/scale than the following ones, and I don’t know what the selection rules of the exchange are?
But this does not affect the enthusiasm of local dogs. 404 is still popular. OKX officially announced support for 21 projects in one breath:
This even includes YuMe, the "escape project" that caused a lot of noise during the Spring Festival.
03. Gamefi starts volume application scenario
According to my previous "six circles theory", many people who engage in NFT belong to the picture circle. In addition to those engaged in collections, there are also those engaged in Gamefi.
Within a few days of the launch of ERC404, the battlefield quickly switched from digital collection to blind box play to fighting game.
If the first wave of enthusiasm was caused by the coins listed on the exchange, the second wave of enthusiasm should be caused by eggx:
Most of the previous 404s were based on Pandora's issuance of 10,000 NFTs corresponding to 10,000 coins.
One NFT of EGGX, an anonymous project, corresponds to 10,000 coins, and it increased 50 times on the day of issuance! It ignited the enthusiasm of native dogs~
This is what the project looked like when it was initially promoted:
As simple as it is, the egg hatching function that has been promoted has not actually been launched yet:
Then various roulette/poker/various game projects came out.
Currently, this project may be the most tiring to rely on the project party to work on:
It seems that some cost was spent when the project was announced, and a manuscript was published on Binance News:
I was lucky enough to participate in the initial mint, and all 500 boxes were snapped up in one minute.
However, there was no follow-up opportunity to call for orders from the community. After the pool was released, the highest price was only twice mint, and then it continued to fall. I don’t know if there will be any big moves in the future~
04. The so-called fairness is all about deceiving leeks.
In this 404 craze, there are also many shadows of the previous inscription community. Of course, there are also projects that refer to inscriptions for fair launch.
Many projects mint only a few hundred copies, but there was one project that minted several thousand copies and decisively overturned:
When Yume was released, eggx had just hit a record of 50 times, and the market sentiment was very full.
Up to now, the Mint progress of this project has been stuck at the current position for several days, and even the rights protection group has come out:
Therefore, I would like to warn all project parties not to engage in fair launch easily.
In the past, Inscription had a fair launch, and the fees were given to the miners. If the project failed, everyone would admit their losses; now there is a fair launch on EVM, and most of the fees are given to the project party's address. It is very embarrassing~
However, as far as I know, the quality of the Yume series pictures is pretty good, the Official Twitter is still active, and the project is on the OKX official support list, so it should not get lost:
To be honest, the projects that had a good increase in inscriptions before were also operated by bookmakers. The so-called "fairness" was often just a slogan. If it were all held by retail investors and there was no market maker pulling the trigger, retail investors wouldn’t be satisfied, right?
05. Is meme still king?
Just yesterday, on the last day of the Spring Festival holiday, another 9527 suddenly appeared.
Strictly speaking, this coin is not ERC404. At most, it is the manual version 404 of Stephen Chow’s Nobody series NFT.
This coin is promoted by a group of core members of the Mouse community, and the trend is also very violent. From the time I entered the market yesterday afternoon to now, the price has increased tenfold:
But the current market value is only a little over one million US dollars. Now the market value of any local dog 404 on the market is two million US dollars.
The core community is also full of rats. This 9527 may be the first time that a large-scale inscription community has moved to EVM. Even a well-known inscription V has started to change the topic:
06. Will the 404 mode be popularized across the entire network?
As the ERC404 model became popular and the protocol rules were simple, various protocols soon came out.
For example, there is ERC1111. This project issued a coin on the first day of the new year. It is said to have some functional upgrades compared to 404.
However, the chart has not been released yet, and the currency price trend is relatively weak. It is said that there will be no operational action until March.
At the same time, there are also people doing 505 on the BSC chain:
However, although the gas on the BSC chain is low, most of them are famous locals, and the participants are mainly 10U gods of war.
On the Ethereum main chain, because Gas is high, most participants can afford it.
As far as I know, many Inscription projects are also leveraging the efficiency of the second layer of Bit to realize the 404 model, which is: linkage of assets and liquidity!
Theoretically, all assets on the chain can be pooled to achieve liquidity in this way. Including the bit ecosystem that everyone is full of expectations for this year, it is essentially to provide liquidity for cumbersome assets on the bit chain.
It’s just that ERC404 popularized this concept with a simple gameplay.
07. Liquidity forces free competition
I have always been a believer in free competition. In all current financial markets, rogues generally use various methods to restrict liquidity, such as restricting sales/increasing taxes, and even arresting people.
But generally no matter what method is used to restrict liquidity, it will end up in a mess.
On the contrary, there are some markets that encourage liquidity. Although most projects will return to zero, many star projects can always come out.
For example, in the U.S. stock market, 90% of the stocks may lose 90% of their market value in five years, but this will not affect the growth of high-quality projects. Many friends may not know that U.S. stock listings only impose lock-up period restrictions on project parties, and there are no lock-up period requirements for institutional investors before listing.
This time, the 404 project is very obvious. The speed of returning to zero for less successful projects is obviously accelerated, while high-quality projects are not afraid of high liquidity.
I hope this situation will appear in the encryption ecosystem in the future~
