Every industry has its own set of slang. The NFT world is no different.
If you’re new to the world of NFTs, the sheer amount of NFT slangs and jargon can be overwhelming. Here’s a quick guide to some of the most commonly used terms in the NFT community, so you can hit the ground running.
What’s an NFT?
NFT stands for “non-fungible token.” In simple terms, it’s a digital asset that is unique and cannot be replaced by another identical copy. Unlike traditional cryptocurrencies like Bitcoin, which are all interchangeable, each NFT is one-of-a-kind. This makes them perfect for things like digital art, collectibles, and gaming items, which can now be bought, sold, or traded like any other.
There are some crucial NFT slangs every beginner should be familiar with:
NFT –Non-Fungible Token
A digital asset that can be bought and sold using blockchain technology. What makes it unique is the fact that it can not be changed with any other token.
ERC-20 – Ethereum Request for Comments
It’s a protocol that was created to establish standard rules for every digital asset built on the Ethereum network. Currently, there are more than 200,000 digital assets belonging to this category.
FOMO – Fear Of Missing Out
This acronym refers to the fear of missing out on something, especially when it comes to investment opportunities and profit-making. FOMO is one of the reasons why people buy NFTs even though they don’t know what they are or how they work.
FUD – Fear, Uncertainty, and Doubt
This acronym refers to negative or inaccurate information spread by an individual or a group, which may cause serious harm to an investment decision. It can also be used as an act of manipulation in order to influence market prices.
A blockchain is a digital ledger that records all the transactions of a given cryptocurrency. It’s what allows NFTs to be bought, sold, or traded in the first place.
Each NFT has its own blockchain address, which is like a unique identifier.
This address can be used to track the NFT’s ownership and transaction history.
An Ethereum wallet is a digital storage space for your Ethereum-based assets, including NFTs. Think of it as a virtual bank account specifically for Ethereum transactions.
To buy, sell, or trade an NFT, you’ll need to connect your Ethereum wallet to an online marketplace.
This will allow you to view and manage your NFTs in one place.
A smart contract is a piece of code that automatically executes when certain conditions are met. In the context of NFTs, a smart contract can be used to verify and enforce the terms of a sale or trade.
For example, let’s say you’re selling an NFT for 100 ETH. A smart contract can be used to hold onto the ETH until the NFT is delivered to the buyer.
Once the NFT is delivered, the ETH will be released from the smart contract and sent to your wallet.
The above-mentioned terms would probably be something which I am sure you would already have been aware of as they are quite commonplace and find mention in the crypto world as well.
Now for some uncommon NFT terms which I am sure you would not be aware of:
Apeing in or Mimicked in – when one buys into a commodity, and you believe it’s a good deal or that it has potential value.
Buying on secondary – Buying formerly formed NFTs from markets such as OpenSea.
Cop – to get an NFT.
Dapps – An application that is decentralized and runs on Blockchain Technology.
Delist – To remove or delist NFTs from a market such as OpenSea, Axie, or Binance.
Derivative – A NFT design or project which originates from an original design. For illustration OG systems similar to Crypto Punks and BAYC have a lot of derivations.
Diamond handing – abstains from dealing which involves either buying or selling an NFT.
Down Only – When NFT prices move downwards, this phrase is used to express the general market sentiment.
Few –Understood by Few Investors.
Bottom price – the smallest priced NFTs available in the market.
Gas – the brokerage that most NFT marketplaces charge. It’s determined by the quantum of business on the network and the calculation power taken to execute a sale.
Gas limit – a set number of brokerages that a person wants to spend on a sale.
Gas wars – drastic increase in gas prices.
Generative Art – algorithmically generated art.
GMI/ WAGMI – Gonna Make It/ We All Gonna Make It. The Joy that good times bring to the NFT community due to a successful transaction.
LL – Larva Labs (John Watkinson and Matt Hall) are the founders of Crypto Punks, Autoglyphs, and Meebits.
LFG – Let’s F *** ing Go. Generally used when one is super agitated.
Looks Rare – frequently used to describe an NFT that actually isn’t rare.
Meatspace – Generally used to describe the actual world.
Mint – the act of originally issuing an NFT on the blockchain. This can be done either by the artist or the collector.
NGMI – Not Gonna Make It. Frequently used in a tone- disapproving way about one’s empty opinions. Especially if it has resulted in a monetary loss.
OpenSea – the biggest NFT trading Platform online marketplace.
Paper handing – transacting in an NFT way too early and thus losing out on potential profit.
PFP – Profile Picture. A digital avatar based on digital art is frequently used as a profile picture on various social platforms.
Rarity – The most critical factor in determining the value of an NFT. The rarer the NFT the more precious it is. The overall rarity of an NFT is calculated based on a variety of the different traits that it’s made up of. Traits could be an icon’s hair, garment, eye shape, and MANY more effects.
Right Click Save As – the act of downloading digital art from the web and setting it as a Profile Picture on social media. Generally done by people that don’t enjoy any NFTs.
Roadmap – the set of goals NFT designers set out to achieve. Roadmaps frequently add value and trust to a design.
Rug pull – when an NFT designer abandons their design and vanishes with the investment. Often related to Fraud.
Snipe – to buy an NFT for lower than its factual worth. Sniping generally occurs when someone is unaware of the true value or rarity of their NFT and is thus asking for a much lower price than it actually is worth.
Sweep the Floor – buying all NFTs listed at the current bottom price.
Szn – Seasonal cycle.
Up Only – When everyone wants the upward movement of NFT prices.
Wen Moon – a term pertaining to the price of an NFT getting so high it practically touches the moon. This expression began on the crypto side of Twitter.
1:1 Art – unique art piece generally 1 of 1 art piece.
1/1 of X – art pieces that belong to a larger collection and are thus owned by you in fractions. So, if a collection consists of 10 000 art pieces and you possessed one of them you could say you enjoy1/1 of 10 000.
Well, that’s all for now. At least presently you are all caught up with the terms of the NFT industry and would be able to have a conversation.
Of course, the way the world moves, we would probably be adding a lot more terms in the future as and when the NFT community comes out with new ones.
We hope you would now feel a bit well versed in the NFT industry.
Feel that we left out a term or slang?
Do let us know and we will surely add it to our list.