NFT Terminology

NFT Terminology

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February 22, 2022
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NFT Terminology

Let’s go over some basic NFT / Crypto terminology you may encounter all over Twitter or Discord:

We’ve broken this into themes to help navigate it (and if there’s any we’ve missed let us know!)

Greetings & Community

  • GM - good morning, friendly morning greeting, somewhat unique to NFTs.
  • GN - good night, saying bye for the day, somewhat unique to NFTs.
  • Fren - Friend, fellow nft explorer who you you’re sending best wishes.
  • Degen - Shorthand for Degenerate. Degen trading or Degen mode is when a trader does trading without due diligence and research, aping into signals and FOMO into pumps.
  • Dox(xed)
  • WGMI - We Are Gonna Make It. Used to essentially say the path ahead is bright and the industry is here to stay.
  • NGMI - Opposite of WGMI. Not Gonna Make It. Used commonly when some makes a poor decision. Can be done in a self-deprecating way.
  • FOMO - Fear of missing out, when people ask somewhat irrationally driven by desire to no miss out on something.
  • LFG - Let’s F&*cking Go. A unifying excitement.
  • OG - original gangster, in NFT it just means someone how was the first or has been around since the origin (or a project or tech).
  • IRL - In Real Life, something that many of us forget about during NFT life.
  • Probably Nothing - Probably nothing normally means the opposite this is probably something. It pokes fun at how many discount NFTs and crypto as a legitimate market.
  • Ape In - To take a big leap into a project (coined from the Bored Ape community).
  • Ser/Sur - A greeting of respect, trying to be old timey and fancy.
  • “We like the ___” - Common saying when someone shows confidence in a project or community.
  • Rug - A rug pull, something that starts off fine but then quickly exposes as a scam or a hollow promise where the team has no intention of delivering. Also on Twitter when someone’s phone stops working and they can’t talk. Rugged.
  • Maxi - someone who is only focussed on one blockchain or project and is firm on that opinion.
  • Shill - unsolicited endorsement of a project. Trying to encourage others to invest or buy something.

Crypto Ecosystem terms

  • Blockchain - The technology that NFTs run off. A collection of computer interactions (called blocks) that are checked by many to validate their legitimacy.
  • NFT - Non-fungible Token, a digital representation of an asset or collectible. With provable ownership and uniqueness (something that is fungible means you can swap it with another and not notice the difference, this isn’t the case with NFTs).
  • Eth - Etherium, the main blockchain where a lot of volume of NFTs are traded.
  • Gas - calculated in GWEI, a % of the current load on network. A tax to do transactions on Eth blockchain.
  • WETH - Wrapped Etherium, the form you need to make offers (can be wrapped or unwrapped on Opensea or Metamask), will exist unti ETH2.0 update.
  • Polygon (Eth) - A layer 2 network with no gas, not as common as Eth.
  • SOL - Solano block chain, an alternative to Eth, with high market activity but also lots of scams and volatility.
  • FIAT term for a government issues currency like USD & Japanese yen
  • Smart Contract - The digital agreement or coded contract that when executed holds an agreement that lives on the blockchain. It allows for ownership and trading.
  • ENS/ENS Domain - Etherium Name service, you might have seen the .eth addresses, it’s a way to route payments and NFTs to your wallet but a customised name (which you can purchase like a url)
  • Burner wallet - An intermediate wallet used to buy and mint from. Used to minimise exposure to scams and losing all of your NFTs and tokens.
  • Defi - Decentralised Finance, using blockchain to support financial agreements like loans and banking.
  • DAPP - Decentralised app, any practical application on a blockchain or crypto.
  • Staking - to lock something in, or put a stake in the ground, normally this results in a passive yield for that commitment.
  • DAO - Decentralised Autonomous organisation, a way of using tokens to represent a % share of an organisation. Sharing in profits and decision making.
  • Scam - an intentional activity trying to steal your money or NFTs.
  • Wallet - Referring to the digital place where you store NFTs and crypto. Similar to IRL wallet but digital which relies on keys and ownership.
  • Hot Wallet - On the internet, accessible online, using an extension like Metamask.
  • Cold Wallet - same as a hardware wallet, the way to store your crypto and NFTs offline. We recommend Ledger.
  • Seed Phrase / Secret Phase - NEVER SHARE WITH ANYONE, this is your method to retrieve your wallet. If anyone has access to this they can steal your NFTs & Crypto. Once set up, you will never have to enter this again (unless you lose your device or want to move it to another). No website or project needs this. If they do it’s a scam.

NFT Ecosystem terms

  • PFP - profile picture, basically any NFT someone would use as their profile on say twitter or discord.
  • Metadata - The extra bits of information included in the NFT itself.
  • Mint -The act of putting something onto the blockchain. Either done as part of the initial drop of a project or by and artist in order to sell.
  • Airdrop - Receiving free NFTs into your wallet. Hopefully from holding a project as a gift but often is done maliciously (on OS these are often in your hidden tab).
  • Bag - the collection in your wallet or what you hold
  • Presale, “whitelist” or allowlist All terms for a select group being allowed to purchase early.
  • Snapshot capturing information at a point in time. In most cases wallets holding nfts.
  • Right click Save As - Every non-NFT person’s perspective why NFTs hold no value. They can just save it - though this doesn’t mean there they can prove ownership which you can if you hold the NFT in your wallet on the blockchain.
  • JPGs or JPEGs - a compression format for images, similar to PNG or GIFs it’s a file format but is normally just referring to picture in digital form.

General Trading terms

  • Pump - The price of a project or asset jumping up higher in value. Pumped up (normally by mass buy from a whale) quickly
  • Dump - A massive sell off (again normally from a whale) causing price to dip aggressively (or tank).
  • Pump & Dump - A project or asset that goes through a normally hype driven rapid rise with people jumping in while things are going up. Then Dumping even harder because a small group with a high number of tokens selling off.
  • ATH - All time high, the highest point a project has made it to.
  • Wash Trading - where someone sells an NFT and buys it straight away (with another wallet). It’s a form of market manipulation (illegal in normal markets).
  • Cost Basis - How much your NFT collection cost you, can be averaged over your purchasing (or other ways) but gives you an idea of your break even point.
  • Dollar Cost Averaging - a trading strategy for buying at regular intervals to balance your cost basis & also a way to sell out of a project and take profit.
  • Buy the dip - when prices drop to low points (ideally backed by technical analysis) it’s encouraged to buy, so you ‘get a deal’. With long term plays this helps reduce your Cost Basis.

NFT specific trading terms

  • The Floor - Represents the cheapest listed NFT for sale, and is representative of the value of the entire project. If your NFT is more rare or has certain attributes/traits that make it more valuable, then you can comfortably assume that its value is above the floor price.
  • Gas war - when expert traders manually change their gas amount to race each other resulting in high gas being spent to prioritise transactions (and cost everyone more).
  • DYOR - Do your own research - it’s important to understand what you’re investing in. It’s high risk (with sometimes big rewards) but this means being selective is important.
  • NFA - Not Financial Advice - People love helping and there are some really smart people but you are the one responsible for where you spend your money.
  • FUD - Fear, Uncertainty and Doubt. NFTs are an emotional rollercoaster akin to trading options, and there will be massive surges and freefalls in price. People also like to spread FUD, often without evidence to attempt to undermine a project. Sometimes there are legitimate concerns and that’s why DYOR applies.
  • HODL, or HODLers - Hold On For Dear Life. The floor only rises or falls based on what holders are willing to sell them at, and this is where the collective strength and conviction of the community comes into play.
  • Diamond Hands - someone who has high risk tolerance and won’t panic in volatility. In other words, buys a project and holds under ‘pressure’ to sell.
  • Paper Hands - someone who sells quickly when prices start to go against them (or they have a price target on paper and they sell when they meet it).
  • Flip - To buy something at a lower price and then quickly sell it on for a profit.
  • Rarity - Within a collection there might be certain traits that are rare or less common. With rarity tools you can understand where a piece might sit in a collection. Traders generally value rarer pieces higher (though this isn’t alway true as Aesthetics matter).
  • Snipe - to buy something that is a great deal, normally after reveal of price jumps. Picking up a rare
  • Liquidity - Having $ or Eth available to buy things with. When you hold assets, this is illiquid as you need to sell it firm before you could buy. Having liquid is one of the hardest things for many
  • Alpha - term to define getting early information that’ll allow you to beat the market (and hopefully make profits), also has trading roots about better than market (beta).
  • Moon - Rapid rise to high price. Mooning is when the project reaches a crazy high and what all holders hope for, to make lots of $.
  • WEN ‘x’ - When, where ‘x’ could be moon, airdrop, mint. NFTs move fast and people can’t help but asking what’s next.

Project types

  • Generative - Something made by computer algorithm ‘generating’ it. Ideally done at mint time and using the blockchain.
  • 1:1 Art - A unique standalone piece. Something that there is only one of.
  • Editions - When you have a piece that has multiple copies that people can buy.
  • Genesis - An artist or projects first ever release.
  • P2E - Play to earn, name covers it really but rewards likely in their own token.
  • POAP - Proof of attendance protocol, a way to prove you were at an event or space.

Tools to use

  • Rarity.tools - where lots of project have rarity listings and useful to find new projects
  • Opensea.io The biggest NFT trading platform where all Eth & Polygon nfts live
  • Looksrare.org - An alternative marketplace, rewards you with $LOOKS
  • Twitter.com - The second home of NFT, with space and lots of activity
  • discord.gg/FAM - Discord is where NFTS live, our discord is our home base.
  • Poap.xyz - main site for POAPs and their distribution.

Big projects to know about

  • BAYC - Bored Ape Yatch Club & MAYC Mutant Ape Yatch Club. Biggest projectever
  • CryptoPunks & LL - Larvalabs (one of the crypto OGs) and their project.
  • Cryptokitties - an early project that had success but suffered from oversupply.
  • NBATopshot - another big NFT project bubble for basketball moments.
  • Veefriends - A project by Gary Vaynerchuk. A respected but undervalued project.
  • WoW - World of Women, one of the first women lead projects
  • Cool Cats - a blue cat picture PFP project that has continued to build and is held in good esteem.
  • Doodles - a fun art style, the project is new but has a great team and will continue to grow.
  • DeadFellaz - another newly established project making progress backed by a great team.

Influencers to follow

  • GaryVee - behind Veefriends but also a key voice in the space (and marketer)
  • Farokh - great vibes but also behind rugradio a big community initiative
  • Punk6529 - writes really great informative threads
  • NateAlex - A visionary, crass at times but really knowledgable and vocal.

If you want a guide for setting up your Ledger Hardware Wallet