New Crypto Experiment Gains 8,000% In One Week 📈

🐺 Hi pack-mates,

This is Howling Markets, the newsletter experiment that aims to revolutionize the financial information niche! 

Today we will be covering:

• Education: What Are ERC-404 Tokens? 🪙

• S&P 500 Has Room To Run, Experts Say 🔼

• New Crypto Experiment Gains 8,000% In One Week 📈

• Equity and Debt Markets Daily Update ⚖️

• And more!

Market Watch 👀

What Are ERC-404 Tokens?

ERC tokens might seem extremely confusing at first, but let’s start from the basics and slowly understand this new ERC-404 project!

Nowadays, everyone is more or less familiar with the extremely popular term “NFT”, which simply stands for “Non-Fungible Token”. NFTs are used to identify something or someone in a unique way by assigning them a globally unique tokenId.

Once the concept of NFTs was created, the developers filed an “Ethereum Improvement Proposal” (EIP) asking the Ethereum network to introduce a unique standard to protect and regulate these new tokens. Once Ethereum approved the proposal, they created ERC-721 (Ethereum Request for Comments 721) which is the official standard that details the functionalities and prerequisites of each NFT.

Likewise, on the Ethereum network there are also fungible tokens, defined by the standard ERC-20, which are all those tokens that are exactly equal in type and value to any other token.

To summarize the concepts up to this point let’s make a couple of examples. The ERC-20 is the standard for creating fungible tokens on the Ethereum Blockchain, such as Ethereum, USDC, Shiba Inu and many others.

Examples of ERC-721 tokens, instead, are all the pieces in the Bored Ape Yacht Club (BAYC). Despite being part of the same collection, each item is unique and not interchangeable with any other, even from the same collection.

And now, we get to the highly anticipated ERC-404 tokens. This new standard promises to mix both ERC-20 and ERC-721 functionalities and properties to create fractionalized NFTs, allowing multiple wallets to own part of the same NFT.

Essentially, you can imagine fractionalized NFTs as public companies. Each public company, even if listed in the same stock market, is intrinsically different from any other, making them a unique asset. However, each publicly traded company issues shares that carry the same value and properties.

As of today, the developers of the first ever ERC-404 token haven’t yet filed the Ethereum Improvement Proposal to the network, so the actual ERC-404 standard does not yet exist and it is only used as an unofficial name.

OKB Gets Hit By a Flash Crash and Tumbles 50% DownS&P 500 Has Room to Run, Experts Say

The S&P 500 has been on a complete rampage since its low hit at the end of October, however analysts expect this performance to continue throughout 2024.

According to a study that analyzed stock market data since the 50s, Truist Advisory Services discovered that when the stock market hits an all-time high after more than a year since the previous one, on average the index continues to break this record multiple times and achieves +14% returns over the next 12 months.

Additionally, Bank of America added that the great economic data coming from the US has helped to wear off the hard landing fear, propping the market even higher. Now, around 75% of investors believe that the US is headed towards a soft landing.

On the other hand, JP Morgan underlined the role of the Magnificent 7 in the current stock market rally. The bank noticed how these stocks accounted for almost half of the SPX returns in January and that the entire technology sector weighs on the index as it did right before the dotcom bubble burst.

Of course, they are not calling for a similar bubble now, however they are warning that a drawdown of these few stocks could significantly bring the entire market down. How would you describe the current US stock market’s health?

Today’s Howling Question

And now, it is time for our howling question!

Despite ERC-404 tokens being an extremely recent phenomena, Pandora developers decided to make its protocol open source to allow other programmers to take part in this revolution. Because of this, in the past 5 days quite a few new ERC-404 tokens have been created. 

Have you heard the name of any other token aside from Pandora?

1. Polygon

2. DeFrogs

3. TRON

4. Cosmos

5. Stellar

Try to answer the question by yourself, and then check the correct answer after the last interesting news!

New Crypto Experiment Gains 8,000% in One Week

Despite ERC-404 being only an unofficial name, tokens with these characteristics already exist and people really believe in this new standard before it even gets approved.

Pandora, the first ever token built on the experimental ERC-404 standard by a group of developers led by “ctrl”, was launched on the 5^th of February and in less than a week it experienced an extraordinary growth.

From a low of around $400 to a peak of over $32,000 per token, this new crypto experiment gained over 8,000% between Monday and Friday before coming back town to around $20,000 over the weekend. Considering that Pandora only has a supply of 10,000 tokens, all of which are already traded in the markets, the coin currently has a market cap of $200 million!

However, despite the optimism, a developer that goes by the name “quit” highlighted a potential risk of this new token. Since an NFT must be deposited in a lending pool for ERC-404 tokens to be issued, if the lending pool isn’t properly regulated or if there are any issues, it could cause a transfer of the entire NFT, instead of the requested ERC-404 tokens.

On the other hand, major exchanged including Binance and OKX have already embraced this new token prototype and stated that they will support the trade of ERC-404s. What do you think about this new evolution of Ethereum’s blockchain?

Equity and Debt Markets Update

And now, our daily markets update!

Friday has been an exceptional day for the stock market which, after a few days of lower volume, it found the strength to hedge +0.57% higher and close above the sought-after $5000 level.

Additionally, as we have seen in today’s newsletter, experts are saying that they do not expect the rally to stop anytime soon, so let’s enjoy this great stock performance.

On the other hand, bond yields continued to increase with the 10 year US government bond yield gaining +0.55% on Friday. Most likely the increase in yields is a consequence of larger government bond auctions that will take place over the next months in the United States, but it is important to keep an eye on stocks because they usually move opposite to bond yields.

Answer

The correct answer is b) DeFrogs

DeFrogs (Ticker: DEFROGS) was the second ERC-404 token ever created, and it currently is also the second by market capitalization clocking in at around $15 million. The project was officially launched on the 7^th of February and since its inception it has gained around 5.5%.

If you are interested, here is the list of all ERC-404 tokens that have been launched up to today.

Howl-Worthy Memes 😂

🐺 See you next time!

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