NFT (Non Fungible token) are digital irreplaceable tokens on a blockchain, and they can be represented as pictures, documents, videos, and more. NFTs are a major part of the blockchain ecosystem. For the past few years, the industry has seen many innovations such as NFT marketplace, NFT fractionalization, NFT sniping, and more.
These innovations have come with new terminologies that describe how fast the space is changing. To better understand the industry, users need to know some of these terms – old and new. Here is a list of 60 terms used in the NFT industry:
> 1:1 (pronounced “one of one”): describes an NFT that is unique and stands alone. It is not like other NFTs that are part of a collection. “Everydays – The First 5000 Days” by Beeple is a 1:1 NFT, while the 1989 Sisters collection is made up several unique NFTs.
10k project: describes a collection of 10,000 NFTs. Sometimes, the world is used to refer to collections that have almost 10k NFTs in the collection, for instance a collection with 9950 NFTs.
Ape in: Ape in happens when a person invests into a new NFT project without conducting due diligence due to FOMO (fear of missing out).
Airdrops: are NFTs given by NFT creators to create more interest in a project or reward / incentivise community members.
Alpha: is a secret or insider information about an NFT project.
Bag: It’s used to denote a user’s wallet.
Burst: signifies a popular NFT project that is common amongst collectors.
Bridge: is used to move NFTs from one blockchain to another by the holder.
Blue chip: NFTs are NFTs that are considered so valuable and with so many utilities. An example is Bored Ape Yacht Club
Burning: means to make an NFT useless by sending it to an unspendable or inaccessible address. The process cannot be reversed.
Community Designated Seller (CDS): is a person that creates a private address to help people sell their NFTs.
Crowdsale: occurs when a public offering is initiated to allow anyone to invest in a new NFT project.
Delist: means to remove an NFT from the marketplace (like an exchange).
DYOR: stands for Do Your Own Research, which implies that those who want to participate in any NFT project should take decisions based on their personal research.
DAPPS: means Decentralized Application, which is an application built on a decentralized network like the blockchain.
DEGEN: is a style of investing that involves a lot of speculation and little research. It is also used to describe a person that is involved in such activities.
Diamond Hands: shows that an NFT holder is keen on holding an NFT for as long as it will take to make profits. It is the opposite of Paper Hand. Discord: is a social media platform that is dedicated to developing communities around games and NFTs. ERC-721 (Ethereum Request for Comment 721): is a standard that allows creators to build NFTs on the EVM (Ethereum Virtual Machine). It outlines a set of rules used while creating NFTs. Ether: is the native token on the Ethereum network. Transaction fees for transacting NFTs built on Ethereum blockchain are paid in Ether. Etherscan: is an Ethereum blockchain explorer that shows transactions, blocks, wallet addresses, smart contracts, and more about assets on the Ethereum blockchain, including NFTs. FOMO (Fear Of Missing Out): happens when users think they will lose if they don’t invest in an NFT. FUD (Fear, Uncertainty and Doubt): is created when certain people spread negative news about a crypto project like an NFT. Fudder: is someone who spreads FUD. Farming: occurs when a holder stakes an NFT to get rewarded. Flipping: follows the process of buying an NFT at a lower price to quickly sell it at a higher price for profit. Floor price: is the lowest current market price of an NFT project or the price of the cheapest NFT in a collection. Free to mint NFTs: These are NFTs that can be minted without cost or with gas fees alone. Fractional NFTs: are NFTs that are broken down or splits into multiple parts allowing for multiple people to own a piece of the NFT. An example is The Doge NFT. Fractioal NFTs are also called F-NFTs. Fractional ownership: is a form of ownership initiated for fractional NFTs. Here, a holder owns part of the NFT and not the whole. Gas war: A gas war is happens the demand to mint an […]
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