The Ultimate NFT Glossary
|— NFTs have given rise to a range of new terminology, some of which is technical or slang originating from within the community itself|
— For newcomers, Discord and other community forums are a great way of getting started with NFTs – but with so much strange jargon, you might struggle to enter the dialogue and start learning
— If Project, Mint, Gas, etc., or other NFT-specific terms sound confusing, read on to learn what they are, as well as, their cultural meaning – here is your trusty NFT glossary.
If the latest crypto trend seems like a foreign language, this NFT glossary is your best friend.
There’s a lot going on in the blockchain space right now, and NFTs are one of the biggest buzzwords. For a newcomer, the jargon can be a lot to absorb. If you’re just getting into NFTs and wondering what on earth this new language is, this is the article for you.
But, Hold on! What are NFTs?
NFTs are digital assets on a blockchain network, which are unique and distinguishable.They can be absolutely anything: a video, a pic, a gaming character’s vector file. But, if we already have these things on the internet, easily accessible, why do we need NFTs?
Because NFTs allow for digital ownership and act as a proof of authenticity of more or less anything; so instead of simply looking at your digital world, you can actively own and change parts of it, collaborate with communities and collectively build projects. NFTs have had an enormous impact on the creator economy and people are pretty excited about them.
But as an emerging technology with a young and very engaged online community, the NFT ecosystem is shrouded in its own weird lingo and jargon – this can make it intimidating and hard to approach. If you’re new to the party and the music is too loud, here we give you an NFT glossary tht will make you feel right at home in your nex space. So as our friends say: LFG (Let’s F****g Go).
Your NFT Glossary
Here are some key terms for NFT newcomers – enjoy the ride!
“So, what projects are you into?”, you’ll be asked at some point.
Normally the artist or creators share a “Roadmap” for their idea, which is designed to help you understand the scope, purpose and direction of the underlying project. Once you have understood a project, you can decide if you’re interested in being part of it. Always, do your own research (DYOR) before you invest in a project.
Speaking of which…pronounced as DIOR, the brand, it reiterates that before you give in to FOMO, you must Do Your Own Research. NFTs are sensitive and nascent, you shouldn’t give in to Twitter roars and chants of LFG (Lets Fing Go!), which aren’t so uncommon when an NFT starts picking up on valuations.
NFT enthusiasts everywhere follow their favourite projects on Discord, figuring out when the latest batch of NFTs will be released. It’s important to note, though, that drops and air drops are different things.
Airdrops are free collectibles or bonus NFTs offered by creators to either generate interest in their project or reward existing users. An airdrop may be a reward to a project’s existing community, for example, or it may be in return for writing a post on social media talking about the project. Either way, the effect is always the same – you receive NFTs for free by meeting certain criteria.
A drop, on the other hand, is the initial launch of a new collection or project. For example, RTFKT Studios, recently launched a collectible called CloneX in a drop. But it is not free; its floor price is set for 2.67 ETH. Floor Price, huh?
In the NFT market, the floor is the lowest current market price you are able to spend to acquire an NFT within a particular project.In other words, the lowest point of entry. It is often used as a short-hand gauge of the value of an NFT project. For example, one very successful NFT collection, the Bored Ape Yacht Club, has a current floor price of 44.89 ETH (at the time of writing of course, these things change fast), and this will change over time depending on how the project evolves.
So you might find yourself saying “I wish I’d got in on that project months ago, when the floor was more reasonable.” Which brings us to another important concept
A common emotion: Fear Of Missing Out! When you hoard a specific token anticipating returns or to gain exclusivity, you FOMO into buying it. In the NFT space, you might also FOMO into buying an expensive NFT artwork, fearing that you might miss out on the next big thing. Keep that FOMO in check!
“No, I don’t really buy NFTs. I will mint my own!”. So, about that!
Say you are an artist or someone with a digital asset you’d like to have ownership of, or sell. You can put it into circulation on the (usually Ethereum) blockchain as an ERC720 Token, so that it can be digitally “owned” and traded like an asset thereafter- this is known as minting. When the digital asset is in circulation, it can now be bought, sold, or collected. The minting process can be confusing for creators unifamiliar with the space, but can be done relatively easily on platforms like OpenSea and Rarible. And what do you need in order to do that? Regardless of the platform, you’ll need some “gas money” to mint an NFT.
Gas is the tax you’ll pay to mint, buy, or sell your digital assets on a blockchain network. Now, depending upon the supply and demand part, gas prices can vary! For example, minting or buying an NFT on the Ethereum chain can be pricey, largely due to the popularity and congestion of the network, while networks like Solana and Tezos networks often provide a cheaper alternative.
WAGMI is short for We’re All Gonna Make It! which is expressed when there is good news..
Based on the asset we have, its price, and supply-demand picture, we are either gonna make it or not. However, the term isn’t specific to a particular NFT. It can also represent the whole community of NFT.
A flip is exactly what it sounds like: A quick switch! When you flip an NFT, you buy and sell it quickly, within a few days, rather than holding it, to try to make immediate profits. Flippers might make moolah in the shorter run, but in the NFT community, holders are the real OGs (Original Gangstas).
When you pull the rug on someone, you lure them in, then deceive them! In the NFT space too, “I got rugged” or “they pulled the rug” means the same. Usually when developers market a project to generate sales and then abandon it, taking the existing profits, the project value (and that of its NFTs, which you, the user, paid for) goes to zero. So DYOR – you don’t want to be caught up in a rug pull!
Hey – have you seen JayZ’s twitter handle? It’s got his CryptoPunk PFP, a Profile Picture that is algorithmically generated and unique for each owner. Be careful, it’s not the same thing as an avatar – it’s strictly designed to act as a unique, owned profile picture, but you can’t necessarily use it beyond that.
Within the NFT space, Alpha-ing means having access to important insider information that is not known by everyone. For example, I work with Ledger, and I know that they’ll be publishing the NFT lexicon shortly – so I have Alpha on this month’s Ledger Academy plans! OK maybe it’s not the intel the world’s been waiting for, but you get the picture…
When you know, you know…
NFTs have their own culture and community, which is just one of the many reasons why they are so interesting.
Their emergence is not only about art and culture – it’s part of a wider move toward decentralization that allows for the formation of communities with a collaborative spirit instead of giving away control to a single person or entity at the top of the pyramid. Like its community, the lingo is pretty cool and creative; now you’re armed and dangerous with your NFT glossary, go forth and enjoy your own exploration!