What is ERC-404? ERC-404 Tokens

Cryptocurrency Exchange

ERC-404 is an experimental hybrid token standard developed within the Ethereum ecosystem. It combines the features of both fungible tokens (like ERC-20) and non-fungible tokens (like ERC-721). This allows users to both trade fractional assets and represent unique NFTs with a single asset. Especially serving as a bridge in decentralized finance (DeFi) and NFT fields, the ERC-404 standard has quickly attracted attention to the market. In Türkiye, investors also closely follow ERC-404-based projects and, thanks to its flexibility, explore various use cases.

What Are the Features of ERC-404?

The most notable feature of ERC-404 tokens is that they make NFTs more accessible by providing liquidity. While traditional NFTs can only be bought and sold as single units, with the ERC-404 standard assets can be fractionalized and traded. This both facilitates price discovery and allows broader user participation. In addition, since the standard maintains Ethereum compatibility, wallet and platform integrations work seamlessly. For users, this means both ERC-20-like trading convenience and the uniqueness of NFTs.

How Does ERC-404 Work?

ERC-404 is essentially built on a structure that combines ERC-20 and ERC-721 smart contracts. When a user purchases an ERC-404 token, they simultaneously own the related NFT. If the token changes hands, the NFT is automatically transferred as well. This mechanism both increases the liquidity of tokenized assets and makes NFTs easier to trade in the market. From a developer’s perspective, since ERC-404 contracts operate on Ethereum with standard smart contract logic, they can be integrated with existing DeFi protocols. This creates new opportunities for both investors and developers.

Popular ERC-404 Tokens

The ERC-404 standard has quickly gained attention in the crypto world and established itself in the market with several pioneering projects. These projects have not only attracted investor interest but also showcased the potential of the standard. Here are some notable ERC-404 token examples:

Pandora: One of the first projects to use the ERC-404 standard. Token holders have access to both ERC-20 style trading and unique NFTs.
DeFrogs: An ERC-404-based NFT collection. Users trading the token also gain access to NFTs within the collection.
Asterix Labs: Stands out with infrastructure solutions supporting the hybrid standard. Provides flexible integration options for developers.
YES (Your Everyday Songbird): One of the new ERC-404-based projects. Offers both liquid token structure and NFT collection access.

Which Platforms Support ERC-404 Tokens?

Although ERC-404 is still experimental, it has quickly started gaining support across many platforms. Ethereum-based wallets and popular DeFi protocols are making updates to adapt to this hybrid structure. Prominent platforms include:

Uniswap : One of the first decentralized exchanges where ERC-404 tokens started trading.
Blur Marketplace: One of the NFT marketplaces experimenting with ERC-404 support.
Metamask and similar wallets: Since ERC-404 contracts operate on Ethereum, wallet compatibility is easily ensured.
Asterix Labs integrations: Stands out with developer solutions supporting ERC-404 infrastructure.

Users can carry out both traditional token transactions and benefit from NFT features on these platforms.

Risks of ERC-404 Tokens

ERC-404 is still an experimental standard, which entails certain risks. Since the security of its smart contracts has not been fully tested, technical vulnerabilities may occur. Indeed, in the past, some ERC-based protocols have experienced exploits due to smart contract vulnerabilities. In addition, as it is a new model, liquidity fluctuations may be high.

One of the main uncertainties for users is regulation. In Türkiye and globally, the legal status of ERC-404 tokens has not yet been clarified. Therefore, it is important for users to choose only reliable exchanges and take risks into account.

Future of ERC-404 Tokens

The future of ERC-404 tokens holds significant innovation for both the DeFi markets and NFT markets. With its hybrid structure, it is expected to provide a permanent solution to the liquidity problem of NFTs. The interest of developer communities and the emergence of new projects are accelerating the adoption rate of the standard. Experts predict that more wallets and exchanges will become ERC-404 compatible in the coming period.

As interest in this area increases in Türkiye as well, the support of reliable platforms will strengthen the accessibility of ERC-404 projects.

FAQ

Are ERC-404 tokens safe?

ERC-404 is still an experimental standard, and its smart contract security has not been fully tested. Therefore, users are advised to transact only through well-known wallets and reliable protocols.

What is the difference between ERC-404 and NFT?

ERC-404 combines the tradability of ERC-20 and the uniqueness of ERC-721. While NFTs represent unique assets, ERC-404 tokens provide liquidity advantages with their fractionalized structure.

On which exchanges are ERC-404 tokens available?

ERC-404-based tokens are currently mainly traded on decentralized exchanges like Uniswap. In Türkiye, users can closely follow various crypto projects via CoinTR.

Will ERC-404 become widespread in the future?

Experts expect the ERC-404 standard to gain more adoption in the NFT and DeFi fields. As the standard matures, the likelihood of its widespread use is projected to increase.

2025-09-29

Legal Notice

The information, comments, and evaluations contained in this content do not constitute investment advice. This content is not intended to be prescriptive in any way and is intended to provide general information. It does not constitute investment advice. CoinTR cannot be held responsible for any transactions made based on this information or any losses that may arise.

Recommended