Traders Make Millions on ERC-404 Tokens
ERC-404 tokens have become the latest shiny things among traders with many making millions from early investments.
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ERC-404 tokens have become the new money printers, with traders making profits on early investments. One trader turned 1 ETH worth $2,507 into $59,000 in 11 hours by trading an ERC-404 token called MINER.
The ERC-404 is a new token standard that allows for the creation of semi-fungible tokens. It combines the features of ERC-20 and ERC-721 token standards. However, it is still experimental and unofficial and has not been added to the Ethereum Improvement Proposals (EIP) standard.
According to Lookonchain, the trader spent 0.065 ETH to buy 1073 MINER tokens soon after its launch while spending 0.802 ETH on gas fees. They later sold 722 MINER for 19.11 ETH using 0.5 ETH as gas fees.
At the time of the trade, realized and unrealized profits were around $59,000. However, the MINER value has dropped significantly since then, and the 200 MINER remaining in the address is now worth $1,530.
Pandora Enjoys More Success
MINER isn’t the only ERC-404 token that has enjoyed success in the past week. In fact, the best performer has been the first ERC-404 token, Pandora. Since its launch, Pandora has seen meteoric success, with several traders aping in and making profits.
One trader spent 97,484 USDT to buy 154 Pandora soon after it started trading. They later sold 25 Pandora tokens at $7,548, making a profit of 91,211 USDT. At the time, they held 129 Pandora tokens, meaning the total profit was around $1.2 million. The trader has sold off all their PANDORA holdings.
A trader also made $1.04 million in profits on Pandora within three days. After buying 50 PANDORA at $2,228 each, he sold all the tokens for $1.15 million when the price reached $23,028.
With all the sell-offs and profit-taking, PANDORA has seen its value drop over the last few days. The digital asset peaked at $32,854. It is now down to $19,538. It is down 8% in the last 24 hours and has fallen almost 16% in the past seven days.
Despite this drop, the token is still in a very good position, and those who bought it early are still making profits. Its high price is mostly due to its limited supply of just 10,000 tokens.
Gas Fees High on Ethereum
Meanwhile, the trading frenzy surrounding ERC-404 tokens has caused gas fees on Ethereum to increase significantly. Most of those trading the tokens spent substantial amounts on gas fees just to get an early buyer advantage.
One trader spent $613 on DEFROGS tokens, buying 100 DEFROG for $190 while spending $423 on gas fees. They ended up with profits of $166k within two days.
However, the ERC-404 tokens look to have seen a drop in their value over the last few days. This is mostly because of the developments in the token standard. Despite that, gas fees are still high at around 130 gwei.
