Detailed explanation of Pandora’s value and valuation

Author: BTCdayu Source: X, @BTCdayu

This article is a speech I made when I participated in @followin_io_zh Free Mai a few days ago. It was compiled with the help of group friends:

At In April, I opened a temporary SPACE, where I suddenly launched a SPACE to talk about ORDI. At that time, more than a thousand people were listening. It was the most popular space that day. At that time, the price outside the market should be 1-2U. After hearing this, many people rushed in and bought ORDI. Shortly after the purchase, the price of ORDI rose rapidly.

When the price dropped, the whole Twitter was discussing, saying "Daewoo is SB", and spreading some rumors that I called everyone stud in 20U And so on, completely ignoring what I said in 5U that I would no longer have any purchase advice.

True fans can make money, but negative fans can only troll people.

Followin posted an article about this protocol today, and I happened to be working on this free mic at noon. I came up to talk about the 404 protocol,

I feel that this agreement is very similar to the ORDI at the end of April, and may even be stronger than the ORDI at that time. You may find it strange that it is such an exaggeration? But you'll understand when I explain why later.

Look at the data on the chain, starting from last night, when our group asked everyone to get on the bus, the price was 3,000, and now it is 6,900 (as of this article The issuance is 14,000). The key is that its liquidity pool is 16 million US dollars. How long have you not seen such a large pool?

Now its market value is 55 million, which many people may think is too high, but this market value is almost more than 2U of ORDI. Do you think 2U of ORDI is expensive? ?

Of course, this is just my personal opinion and is not intended as investment advice. Otherwise, our science popularization meeting today will become a call for everyone to buy, and if you buy it, you won’t give me any money, right? If you give me money, you can blame me.

Why is it rising while talking? The Yang line is pulling very hard. Did many people buy it directly after listening to it?

1. What is ERC404

ERC404 protocol, it is also a natural diamond.

Judging from the current situation of the Bitcoin ecosystem, there are very few natural diamonds, only a few like ODI and Astro Boy. That’s not to say that artificial diamonds are bad, but you need to know the difference between artificial diamonds and natural diamonds.

For example, ODI, whether you buy it, spread it, or participate in Bitcoin, everyone is equal, and Satoshi Nakamoto is not You will benefit from it because you bought Bitcoin. This is called natural, and it is difficult to be promoted artificially.

However, if I issue a coin now called Dayu Coin, and I have strong capital strength behind me, for example, I have 100 million US dollars to promote the market, then the price It will definitely rise like crazy.

But I also have to control the market to 90%. The purpose of this is definitely not for charity. In the end, it still has to be cut, so artificial diamonds have a short lifespan and natural diamonds have a short life. It will become more and more valuable as time and space ferment.

So, I have been looking for natural diamonds in the market. For example, Bitcoin 15 years ago was a natural diamond. Whoever discovered it early will understand it thoroughly. Whoever benefits from it. By the time ODI came along, it was a natural diamond.

And today’s ERC404 protocol is also a natural diamond.

It came about accidentally, just like when V God brought a bug to World of Warcraft, Blizzard ignored it, and then V God was angry and created Ethereum. The 404 protocol here was also created because a bug in another protocol was discovered and the problem raised was ignored, so I created my own 404 protocol. Its birth was dramatic.

Simply put, the 404 protocol is a protocol for currency and NFT exchange. In other words, all NFTs issued on this protocol in the future will have native on-chain liquidity.

The so-called native means that it does not need to be promoted by projects like Blur, and it has its own liquidity.

In the past, when you bought BAYC and other NFTs, it would be embarrassing if there was no liquidity, but now you can trade your NFTs directly on Uniswap. This is just the beginning. - For more interesting things, you have to think a few more steps, but you may not understand this first step alone. Let me talk about it first.

1\The significance of trading NFT on Uniswap

In fact, when NFT has After native liquidity, it can be integrated with all infrastructure on the chain, whether it is DeFi lending or other innovations.

Although the NFT market already has services such as loans, mortgages, and perpetual contracts, these are often difficult to implement. This is because the ERC-721 standard of NFT faces many challenges when solving liquidity problems, including fragmented solutions.

However, after the introduction of the 404 protocol, the situation has changed. NFT is not just a token, it can be more easily integrated into various financial contracts. For example, perpetual contracts have become easier to access.

The key point is that if the 404 protocol can gain as much recognition as ERC-721, especially from organizations like the Ethereum Foundation, it The potential will be huge.

Judging from the current rising trend of popularity across the entire Internet, the possibility of the 404 protocol gaining widespread recognition is very high.

The Ethereum ecosystem needs new things, and the 404 protocol seems to fit this need. The currently popular RWA, LRT, etc. are only meaningful to large investors.

For large currency holders, complex staking strategies and returns may be attractive, but for small currency holders, these complex staking strategies The narrative and action are not engaging. They are not interested in obtaining meager annualized returns, but are more inclined to pursue larger market opportunities.

Thus, a heavily pledged project like eigenlayer may only attract the interest of a small number of users.

The emergence of the 404 protocol may completely change the rules of the game in the NFT market. If the 404 protocol is widely accepted, then all mainstream NFT projects may no longer be limited to platforms like OpenSea, but can be directly listed on other large exchanges such as OKx or Binance.

This means that if an NFT project adopts the 404 protocol, its liquidity and playability will be greatly improved, and it can bring more gameplay and innovation .

As an old player of NFT, when I saw the 404 protocol, I felt unprecedented excitement. It opened up my imagination about the possible ways of playing NFT, and made me look forward to more novel projects appearing in the future. Compared with previous NFT projects that just released some beautiful pictures and stories, the 404 protocol makes NFT transactions and applications more vivid and interesting.

2. The relationship between Pandora and the 404 protocol

Pandora is a software released based on the 404 protocol Coin, Pandora's importance may be that it is the first coin based on a specific protocol, which has its own unique value.

Just like ORDI, the first currency on the Bitcoin chain, it has huge value. But even more exciting than ORDI is the new possibilities that Pandora opens up.

Ordi is a meme. Although its development is driven to a certain extent by the prosperity of the entire ecology, this ecology is not so able to provide benefits due to the attributes of the chain it belongs to. ORDI empowers directly.

However, this impact on Pandora will be much more direct and powerful. For example, consider the following questions:

More airdrops: Will the ecological projects on the 404 protocol airdrop to the protocol's leading projects to complete the cold start?

More projects: When countless ecological projects are under construction, will there be very, very powerful projects among them, which will bring more and more ecological projects? A big wealth effect, which will affect the valuation of PANDORA?

More suspense: Going back to PANDORA itself, if you buy a certain amount of coins, you will have NFTs. These NFTs have different rarities. Can these boxes be opened? There is a lot of suspense about whether there are more ways to play when things come out.

More ways to play: In addition, ecological projects are both coins and NFTs. Will there be more common schemes in the ETH ecosystem in the future? How to play with baby?

Bigger space: Will all NFT and MEME be launched on the 404 protocol in the future?

Third, we should pay special attention to several points

First, whether the agreement can be widely recognized ? [As of the publication of this article, OKX wallet, ELEMENT, UNISWAP, metamask, etc. all support the 404 protocol].

Second, what will Vitalik say about the agreement? Will he pay attention and talk about it? Here I think 99% of him will pay attention.

Because he is a very fair and just person without too much selfishness. He is almost like a god in my heart. Such a person will only look at issues from the perspective of whether it is beneficial to the world and whether it is beneficial to the ETH ecology. So, will he object to the innovations that the 404 protocol may bring about to make ETH more prosperous? No reason, he would just support it.

Third, will each exchange list PANDORA? With such a large transaction volume and popularity, there is no reason not to join, and this is no longer a MEME, but a high-value project.

Generally speaking, we have to believe that where there is money and traffic, the most innovation will break out.

[This is the time for other guests to speak. The project team suddenly parachuted into SPACE and had an English exchange. I will omit some of them here. Please listen. Original text, the project party mainly mentioned some team background, next step plan, etc.]

Afterwards, some audience members exchanged some questions with @BTCdayu, including the project party’s roadmap wait.

@BTCdayu: Everyone is concerned about what the project side will do next, but I think this agreement does not require the project side to have a strong presence.

That is to say, for example, the road map, official website, community, etc. can actually be done by the community, just like ERC-721. Who is managing it now? Everyone doesn’t care and doesn’t need to know.

Take Azuki, the first NFT on ERC-721, as an example. We all know why Azuki was so popular at the time. Isn’t it because of its protocol level? Attractive? They even said that they could change the agreement, which seemed very cool and powerful.

So, I think for the PanDora project, its value lies more in the community than in what the project side has done. It may even be that the project side doesn’t need to do much.

Of course, the project team has strong technical strength and is also very open. We can give them some good feedback.

However, from an investment perspective, I think the role of the project team is like a rough diamond, and we don’t need to care too much about them. .

4. Bit's silly talk about valuation: it will surpass BAYC by hundreds of times

This paragraph is for guest @bitfool1 to share some of his views:

This project is different, it has advantages that cannot be copied. I think 80% of the project side's work has been completed. Even if the project side does not do the remaining 20% ​​of operations and development, someone will do it.

This project activates the maximum liquidity of NFT with minimal changes. I guess the project party itself is not fully aware of this. Many NFTs have encountered great difficulties in the past, including the lack of liquidity of NFTs in the current Ethereum ecosystem, and many hard measures have not solved the essential problems.

But this project gave us the answer. An exquisite part solved what seemed to be a complicated problem before. It takes advantage of the existing technical facilities of the smart contract ecosystem, so the next thing should fall into place.

In the future, there will be more DeFi protocols to cooperate with, and these are all foreseeable.

Let’s talk about valuation, I think this project will beat BAYC, because one of its tokens or NFTs is currently in the price range of 3 to 4, while Bored Compared with Ape, it was 20 times when I looked at it in the morning and 10 times when I wrote the article. Now the valuation gap may only be 7 to 8 times.

This gap may be closed within 24 hours. This is an ideal situation, but whether it's 24 hours, a week, or a few months, this project has a better foundation than Bored Ape.

Bored Ape represents an outdated way of thinking, constantly playing games around a few small pictures to attract celebrities, which is outdated.

The 404 protocol is moving on the right path. Although it is small, its valuation is rising fast because there are many smart people in the market. They have a deep understanding of these protocols and understand them as soon as they see them.

Of course, there are many people who came in and out early and they couldn't hold it, so compared to BAYC, it has a valuation of 7 to 8 times. But this 7 to 8 times itself is the currency standard, and the currency standard still has room for growth several times.

In addition, the valuation of the currency will exceed the valuation of the NFT, because BAYC is just a pure image without a currency. This is inspired by the Bitcoin ecosystem protocol BRC420. Its foundation is actually worse than ATOMICal, but because of the coexistence of NFT and TOKEN, its market value can significantly exceed ATOM. This means that the market cap of the coin should exceed that of pure graph.

In the 404 protocol, currency plus graph, in principle, the liquidity of both parties can be obtained, which may produce the effect of 1 plus 1 being greater than 2.

So, 7 to 8 times the market value of Bored Ape, plus the coexistence of NFT and TOKEN, the currency will be several times larger than the picture, then this is dozens of times market value.

Plus the currency standard itself will grow several times in a bull market. That adds up to a valuation increase of hundreds of times. In addition, if benchmarked against BAYC, it itself will grow several times in the bull market.

After all, this project actually has hundreds of times of potential for growth!

Of course, various problems may arise in the future. It may be problems with the agreement, or some heavyweights including Vitalik think this project is not feasible. Either key issues cannot be solved, or problems arise at the team level or partner level, there will be setbacks.

The worst case scenario is that it returns to zero, and the money you invested may be gone. But if you follow the path I described, there will continue to be new splits in the future, and the top targets will be strengthened, then there will be hundreds of times of income. This is the most ideal situation.