A user who remained unidentified earned $1.1 million on Pandora, but lost over $100,000 by investing in the new ERC-404 token. The issue was brought to attention by analysts from Lookonchain.
The trader’s profit was achieved by buying the Pandora token for $113,200 and selling it for $1.2 million on February 11. However, things took a turn for the worse on February 13 when the trader purchased an ERC-404 No token worth 10 ETH.
This resulted in a fee of 42.88 ETH ($113,672) being paid. Unfortunately, an error occurred during the transaction and the trader lost all of the invested funds. HAPI experts suggest that the issue could stem from a software bug or the fraudulent nature of the token itself.
The ERC-404 token, which is an experimental implementation of ERC-20/ERC-721, allows users to own both a coin and a fractional non-fungible token automatically in their wallets.
Despite not being officially approved by the Ethereum Foundation or the community, the program code was not verified through audits.
