Don’t worry about whether 404 is Ponzi or not. Liquidity is justice.

This Spring Festival, basically people in all industries are anxious, only people in the crypto circle are excited~

Someone harvested 7000 times during the inscription cycle Great God, on the last day of the Spring Festival holiday, I also lamented that it felt like a lifetime ago.

For those of you who did not pay attention to the crypto community during the Spring Festival, I would like to sort out what happened in the past few days.

One ​​week before the 01 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 also Just trade NFT.

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 the holder buys tokens, an NFT will be minted for every integer.

The low liquidity problem that NFT has been criticized for in the past has been solved so simply.

pandora is the first token of ERC404. When I knew 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.

2002, the native dog is not celebrating the New Year, and projects are intensively launched

I don’t know why, maybe it is 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:

In the list, except The first Pandora is easy to understand as Dragon One, and the other tokens are small plates.

Defrogs can barely be regarded as a second-tier 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 go:

This even includes YuMe, the "escape project" that caused a lot of noise during the Spring Festival.

03Gamefi start volume application scenario

Follow my previous "Six Circle Theory "Many people who are engaged in NFT belong to the picture circle. In addition to those engaged in collections, there are also those engaged in Gamefi.

Just a few days after the launch of ERC404, the battlefield quickly moved from digital collections to open blind boxes to fighting games.

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.

EGGX is an anonymous project. One NFT corresponds to 10,000 coins, and it increased 50 times on the day of issuance! It ignited the enthusiasm of local dogs~

When this project was first promoted, it looked like this:

Just so simple, always The advertised egg hatching function is actually not online yet:

Afterwards, various roulette/poker/various game projects came out.

At present, this project may be the most tiring to rely on the project party to work on:

It should have cost some money when announcing the project , published an article on Binance News:

I was lucky enough to participate in the initial mint, and all 500 boxes were snatched up in one minute.

However, there was no follow-up call for orders from the community. After the pool was released, the highest price was only twice mint, and then it kept falling. I don’t know if there will be any big tricks in the future~

04 The so-called fairness is all about deceiving leeks

In this 404 craze, many shadows of the previous inscription community have also appeared. Of course, there are also projects that refer to inscriptions for fair launch.

Many projects mint only a few hundred copies, but there is a project that mints thousands of copies and decisively overturns:

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:

So 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. Square address, it would be very embarrassing to do this~

But as far as I know, the quality of the Yume series pictures is pretty good, and the official promotion is still going on. The project is also on the official support list of OKX, so it should not run away:

To be honest, the projects that had a good price in the past 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?

Is meme still king in 05?

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. Since I entered the market yesterday afternoon, 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 mice. This 9527 may be the first time that a large-scale inscription community has moved to EVM. Even a well-known inscription V Let’s 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.

But the chart has not been released so far, 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 well-known local dogs, and the participants are mainly They are all 10U God of War.

Because the gas on the Ethereum main chain is high, the amount of most participants is okay.

As far as I know, many Inscription projects are also leveraging the efficiency of the second layer of bits to realize the 404 model, which is: linkage of assets and liquidity!

Theoretically, all kinds of assets on the chain can build pools in this way to achieve liquidity. 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, hooligans 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 the return to zero of the less successful projects is obviously accelerated, while the high-quality projects are not afraid of high liquidity.

I hope this situation will appear in the encryption ecosystem in the future~