NFT Glossary & Slang

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To help you better understand the world of NFTs, we’ve put together a glossary of the most commonly used terms and slang expressions from the sphere.

NFT Glossary:

1

1/1 or 1×1 signifies the scarcity and uniqueness of the token. The number on the right means the total number of issues of this token, and if it’s 1/1, it’s completely unique (as opposed to 1/50, for example, meaning it’s one of the fifty tokens in the issue). 

A

An Airdrop is a way of promoting a startup or collection project. During an airdrop, NFTs or (sometimes cryptocurrency) are sent to the participants’ wallets free of charge to spread the word about the collection and its authors and kick off the initial sales. 

Altcoins are all cryptocurrencies that aren’t Bitcoin.

AMA stands for “ask me anything” and is used to show that the author of a project is up for an open chat with their audience. 

Ape in – invest in or buy a crypto project without prior research or due diligence. Typically used in connection with FOMO and hype. Those prone to FOMO will eagerly ape into any project that promises instant 100x. 

Art Blocks is an NFT marketplace that deals primarily in generative art. 

An Asset is any piece of media you can own that has value and, therefore, can be exchanged or traded. It could be an artwork, a music track, a tweet, or anything else you can buy as an NFT.

Async Art (Asynchronous art) is an NFT marketplace that claims to take NFTs one step further by tokenizing not just whole artworks but also individual elements (layers) of them.

Axie Infinity is one of the most popular NFT games that allows users to breed, trade, and battle their digital pets called Axies. It also has its own metaverse with purchasable NFT land plots. 

B

Bears are traders whose goal is to bring down the price of a crypto asset. 

Binance is one of the leading crypto exchanges sporting a vast and comprehensible crypto trading ecosystem, including an NFT marketplace where you can mint and list your own tokens. 

Bitcoin is the first decentralized digital currency that can be sent between users on a peer-to-peer network without intermediaries.

Blockchain is an open-source digital ledger wherein all transactions are broadcasted across a global network that is public and immutable. It’s is used in cryptocurrencies as a way to ensure secure transactions. 

BTD/BTFD stands for Buy The (F*cking) Dip and means buying an asset when its price drops down to a relative low but is expected to bounce back before long. 

Bulls are traders who buy currencies to sell them at their peak later. They’re the force pushing the market higher. 

To Burn an NFT is to permanently delete it from the blockchain. 

Cardano is a proof-of-stake blockchain platform and the first to be based on peer-reviewed research and developed through evidence-based methods.

Crypto Art is a term for digital or NFT-art that can be regarded as the equivalent to physical due to the ability to prove its ownership on the blockchain.

CryptoPunks is one of the world’s most popular and expensive NFT collections. It represents 24×24 8-bit portraits of “Punks” – moody characters of different genders, races, facial features etc. 

A Crypto Wallet is a virtual wallet allowing users to transact on a blockchain. There are numerous types of crypto wallets, and they usually come as mobile apps or browser extensions. There are also hardware wallets, such as Ledger or Trezor. These are thought to provide the highest security of your digital assets. 

D

A dApp is a Decentralized App, i.e., any app, such as a wallet or a mobile game, that runs on a blockchain and is not governed by any centralized entity.

DAO stands for Decentralized Autonomous Organization and is a platform, such as an exchange or NFT marketplace, whose ecosystem runs on a blockchain and is governed entirely by the community of users via governance tokens kept in the platform’s own treasury. Mintable, for instance, is a DAO. 

Decentralized storage is an online data storage running on a decentralized network and maintained by users interested in storing and accessing the data. Some of the most prominent examples include IPFS, FileCoin, Sia, Storj, and Swarm.

DeFi (Decentralized Finance) is a form of finance that doesn’t rely on central financial intermediaries such as brokerage houses, exchanges, or banks sticking to traditional financial instruments. Instead, the DeFI sphere runs on smart contracts to perform transactions on a blockchain, such as Bitcoin or Ethereum. 

Degen (short for Degenerate) is a crypto trader or investor who exhibits extreme risk tolerance and is prone to making bad and risky decisions as standard. 

Delisting is the process of removing non-fungible tokens from trading (opposite of Listing).

A DEX (Decentralized Exchange) is a crypto trading platform where funds are kept directly on the users’ wallets as opposed to being locked up on the service’s own account in centralized exchanges. dYdX is a DEX, whereas Binance is a centralized, or custodial, exchange. 

Diamond Hands is what you call an investor ready to HODL (see below) their assets regardless of the price drops or volatility, however high. Often used sarcastically. 

Digital art is any art created, stored, perceived, and distributed with the aid of digital media. 

Digital collectibles are virtual collectibles distributed as non-fungible tokens (NFTs). 

A Drop is the release of an NFT collection. Early investors are usually the first to find out about an upcoming drop and, therefore, are those who reap the most benefits.

A Dump is a rapid drop in the price of a crypto asset. Typically follows a Pump, a rapid spike of its price. Pump & Dump schemes are usually pulled artificially by means of media manipulation and are considered a fraud among users. 

A Dutch Auction is an auction model where the sale of an asset starts at a ceiling price, which then drops gradually over set amounts of time. 

DYOR stands for Do Your Own Research and is, without exaggeration, the most valuable piece of advice you’ll ever get in the crypto world. Study the assets you want to invest in, and don’t do anything out of FOMO or hype.  

E

ERC-20 is a token format for cryptocurrencies and fungible tokens on the Ethereum network.

ERC-721 is the technical standard for NFTs on the Ethereum network.

Ethereum/ETH  is an open-source decentralized blockchain running on smart contracts. ETH is Ether, the native cryptocurrency of the network. 

F

A Farm is a set of tools and devices that help you increase the chance of buying NFT.

Flipping is obtaining and quickly selling small items for small quick profits. 

The Floor price is the lowest price at which an NFT can be bought.

Floor sweeping is buying up several NFTs at floor prices to drive them up later. 

FOMO is the Fear of Missing Out and is the main driver of the cryptocurrency industry. 

Foundation is one of the largest NFT marketplaces that’s known to be fairly selective about the works presented on it. 

Fractional NFTs are non-fungible tokens that belong to several people at once and are broken down into smaller tradeable segments. 

FUD for Fear, Uncertainty, and Doubt, a set of circumstances where investors and traders don’t know what to expect from the market or a given asset and are prone to grow anxious for that. 

Fungibility is the ability of any asset to be equally exchanged for another. For example, Bitcoin is fungible because 1BTC always equals 1BTC. NFTs are non-fungible because their prices are always arbitrary, and therefore, you can’t exchange one for another .

G

Gas is a fee you have to pay to the blockchain (the miners) for performing transactions on it, such as sending cryptos or minting/betting on/buying an NFT. The concept was introduced by the Ethereum network. 

Gasless Mining is a way to mint (create) your NFTs without having to pay for gas. Only presented by some marketplaces, such as Rarible and Mintable. 

A Gas War is an auction-like battle between users of a blockchain who are ready to pay extra gas to have their transactions validated. 

Generative Art is a type of NFT art that is generated at the moment of minting a token. 

Gems are the internal currency used by VeVe for buying and selling collectibles. 

GMI, or “Gonna Make It,” is used to declare that the future looks bright and full of high returns. 

Gwei (Giga + Wei) is a denomination of the cryptocurrency ether (ETH) used on the Ethereum network. 

H

A hash is an alphanumeric string used to identify separate chunks of data. In the blockchain world, any piece of data a blockchain has a hash attached to it.

Hashmask is a form of digital art representing a single NFT portrait created by a globally-distributed team of 70 artists. 

HODL is a misspelling of Hold (as in “hold Bitcoin”). Used to describe the strategy of long-term holding a crypto asset and not selling it no matter what happens. Often interpreted as “Hold On for Dear Life”. 

I

An ID token is a security token that contains information about the end-user and confirms their authentication.

IMX, or Immutable X, is one of the leading blockchains when it comes to NFT trading, not least thanks to the absence of gas fees on it. 

IPFS is a distributed file storage system. Most often used by NFT marketplaces for uploading unlockable content included in newly-minted NFTs. 

K

KnownOrigin is one of the world’s first and largest NFT Marketplaces, built on the Ethereum Blockchain.

A KOL, or Key Opinion Leader, is a social media influencer who does exactly what the name suggests. 

Listing is the process of publishing non-fungible tokens on a marketplace and making them available for trading. 

LL (LarvaLabs) is the company that brought about the CryptoPunks collection.

A Long is the purchase of a cryptocurrency or other asset for the purpose of long-term investment.

“Looks rare” is a common ironic saying about an NFT, meaning the exact opposite. 

M

MakersPlace is an NFT platform for trading rare, authentic & curated digital art. 

A marketplace is an online platform for trading and/or creating and listing NFTs. 

Metadata is the description of the NFT token filled at the time of the minting. It usually includes the name, creator bio, ticker, hashtags, etc. 

Metamask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. Available as a browser extension and a mobile app.

A Metaverse is an immersive virtual universe providing opportunities for socialization, entertainment, and business of any kind. 

Mining is the process of forging blocks of cryptocurrencies and adding them to the blockchain network.

To Mint/Minting is the process of creating a non-fungible token and adding it to the blockchain. 

The Moon/To the Moon! is one of the key memes in the crypto sphere and describes the excitement and positivity about the prospect of the prices of your assets skyrocketing very soon, making you instantly rich.

A Moonboy is someone with a lot of irrational faith in their assets. Typically someone who never does DYOR. 

A Multisig or Multi-Signature Wallet is a wallet that requires several signatures from different users to complete a transaction. Typically used in DAOs to ensure safety and fairness of governance and other types of operations. 

N

NFA stands for Not Financial Advice and is used as a warning to liberate yourself from responsibility for other people’s missteps in finance. 

NFT (Non-Fungible Token) is a digital receipt stored on the blockchain. It represents ownership rights to a piece of the piece of digital media linked to it, be it a painting, a video, a game item, or a discount coupon. NFTs can be minted (created) and traded for cryptocurrency. One NFT cannot be exchanged for another because each token is unique (non-fungible).

NFT games (aka Blockchain games) are videogames based on or utilizing NFTs as part of their core mechanics or monetization schemes. In an NFT game, in-game items such as weapons, characters, and cosmetics, are stored as NFTs and, therefore, can be traded outside the game itself. 

NFT Protocol is a decentralized protocol to serve the non-fungible token asset class.

An NFT auction is an auction where non-fungible tokens are offered and sold in the form of art, music, GIFs. In an auction is run by a digital NFT marketplace, bids are usually accepted in ETH or WETH (Wrapped ether).

NGMI (Not Gonna Make It) is the opposite of GMI and is used to express low morale and lack of belief in the bright future. 

Nifty is an NFT digital marketplace where people can buy and sell unique digital art collections. 

O

OpenSea is the first and largest NFT marketplace. 

P

P2E stands for “Play to Earn” and is a gaming model that allows players to earn real cryptocurrency and/or NFTs by simply playing a game. Axie Infinity is the leading example at this point. 

Paper Hands is the opposite of Diamond Hands. Means someone who screws up with their crypto big time without even trying. Typically, someone prone to impulsive thinking and FOMO-driven decision making. 

A Pre-sale is a closed sale of tokens only available to whitelisted users. 

A Private Key is a cryptographic key that allows users to access funds from their wallets. It’s known exclusively to its owner and, once lost, can lead to theft of all the digital assets held by them. 

Probably Nothing means the exact opposite and is used to signalize that an NFT might be of interest. 

A Public sale is the sale of tokens to the general audience. 

A Pump is a rapid spike in the price of a crypto asset. Typically precedes a Dump, a rapid drop of its price. Pump & Dump schemes are usually pulled artificially by means of media manipulation and are considered a fraud among users. 

R

Rarible is one of the key NFT marketplaces, which, among other benefits, offers free/gasless minting. 

Royalties (much like in music) are a percentage of the sales of an NFT allotted to its original owner/creator. In the NFT field, royalties are set by the author at the moment of minting a token. They are built into the NFT and are calculated and allotted automatically with each subsequent sale. 

A Rug pull is a scheme in which developers suddenly abandon a project taking all the investors’ money (run off with the cash). Most often set up intentionally, can be VERY deceptive and convincing, and can only be spotted and avoided through a fair amount of DYOR.

S

A Short is the purchase of a cryptocurrency or other asset for the purpose of a short-term investment.

A Smart Contract is a conditional algorithm that performs a requested operation if the required terms are met. It’s the cornerstone of DeFi and the core mechanism of any blockchain.

SuperRare is an ‘elite’ marketplace where you can sell or buy NFTs. The platform is known to be very selective about who it works with, and therefore, all items listed on it are often perceived to be more valuable than those of other platforms. 

T

A Token is an entry (asset) on the blockchain giving its holder the right to a certain amount of digital currency or the right to perform certain actions using it. 

V

VeVe is an app for trading digital collectibles from the world’s top brands, such as Disney, Marvel, Nike, etc. VeVe has its own isolated ecosystem that runs exclusively on an internal currency called Gems, which can be bought but not withdrawn. 

W

Wen Lambo – a butchered version of “When Lamborghini?” Expresses the wondering about when one will be rich enough to afford a Lamborghini. 

Wen Moon — same as Wen Lambo. 

Whales are the biggest holders of crypto assets who have the power to control market movements.

Whitelist is a list of people who have completed an application and are eligible for early purchase of cryptocurrency and/or non-fungible tokens.

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