Have you ever felt underconfident while conversing with your friends about NFTs? You might be clear with the concept, but there are various terms that might confuse you. If you agree with me then here is the list of the important NFT terms along with the definition that will help you to understand the concept of NFTs better.
If you are new to the NFT world then let us start with What are NFTs? NFTs are the Non Fungible tokens that are associated with digital assets. In simpler words, these tokens carry the ownership of the digital assets known as the NFTs. Well, if you are trying to invest in NFTs and earn money then you must be aware of the basic terms used in the NFT Marketplace.
Further in the post, you will cross all the important terms used in the NFT world. Well, if you don’t want to look noob in front of your friends then you must go through these terms and definitions once. We have explained them in the simplest way possible.
Some Of The Important NFT Terms Are:
So let us begin our guide on the important NFT terms. Well, before beginning let us tell you that we have only mentioned the important and most used terms in the list. The list might not include all the terms.
If you come across any term that is not on the list then do ask us in the comments section we will reply to you ASAP.
10K Project
What Is the 10K Project in NFT?
The 10K Project in the NFT refers to the collection of the 10,000 avatars that can be traded as the NFTs. Well, the only example known to the world for this type of project that contains the collection of approximately 10K avatars is CryptoPunks. The CryptoPunks are largely famous among the celebrities who are buying them for millions of dollars.
The NFT community has decided that they would name the projects like these the 10K projects.
Apeing
What Is Apeing In NFT?
Well, the term may look weird to many but, it has nothing to do with the Board Ape Yacht Club NFTs. Apeing in NFT refers to the unreasonable buying of the NFTs without doing proper research about the future of a certain type of NFT. It is buying the NFT out of FOMO that you need to buy t because others are buying it.
Also Read, How To Mint An NFT And Things You Need To Consider While Minting NFTs!
Burn
What Does Burning Means In NFT?
To burn the NFT means to destroy it. We know what you might be thinking, why would someone destroy their NFTs. Well, here is the example: suppose there is a 10K project that aims for selling the 10,000 NFTs but is able to sell only the 5K. What will he do with the rest of the 5K? The company burns the NFTs this creates a shortage of the NFTs and demand goes up increasing the value of the NFTs.
There are various companies that give the users an option to burn two of their NFTs in return for the more rare NFTs.
Diamond Hands
What Are Diamond Hands In NFTs?
“Diamond Hands’ ‘ is one of the funniest and most used terms in the NFT and the Crypto world. Diamond a Hands refers to a person with diamond hands who holds on to an asset through price volatility, negative news, poor market sentiment, and more.
In simpler words, Diamond Hands are the people who hold their digital assets irrespective of the market fluctuation.
FUD
What Does FUD Stand For In NFT?
FUD in NFTs stands for “Fear, Uncertainty, And Doubt”. The term is used in the crypto world as well and it is used for the news or tweet that is not true. However, it becomes one of the major reasons behind the drop in NFTs and cryptocurrencies.
Also Read, How To Buy NFT Art | A Guide For Beginners
Gas
What Is Gas in NFT?
We know that NFTs work on the blockchain. For making a transaction on blockchains you need to pay the Gas fee. Well, if you are using the Ethereum blockchain then the gas fee is high. If you go for the Solana blockchain then the gas fee to be paid is comparatively low.
The price of the gas also varies on the traffic on the platform. If the traffic is high then the gas fee will also be high. You can say that the gas is directly proportional to the traffic on the platform.
Gas War
What Is a Gas War?
Gas War refers to the hike in the Gas fees by the platform due to the demand. Well, let us explain to you with an example. Suppose an NFT collection of 10K NFTs is launched, and it is hugely in demand. So, what the creators will do, they will increase the Gas fees so that the NFT price remains the same but the Gas fees outbid the people. This is known as the Gas War.
Metadata
What Is NFT Metadata?
Metadata refers to all the important and essential data about the NFT. The Metadata defines how the NFT looks. The NFT Metadata is a document in the JSON format that contains
- NFT’s name
- Description of the NFT
- Link to the hosted image
- Traits
MM
What Is MM In NFT?
MM is the acronym for MetaMask. It is a famous NFT crypto wallet that works efficiently in the Ethereum ecosystem.
Paper Hands
What Does Paper Hands Mean In NFT?
Paper Hands is the opposite of Diamond hands. Although the term is not specifically meant for the NFT world but is used frequently in the NFT market. It refers to someone who sells his digital asset quickly as soon as he sees the price of NFT fluctuating.
Reveal
What Is Reveal In NFT?
In normal English Reveal means to show something, but it means something different with the twist in the NFT world. The NFT that you wish to purchase is not fully revealed to you until you mint it after purchasing. Well, it totally depends upon the creator, whether he wishes to reveal the NFT immediately after the purchase or can also delay the display.
Also Read, How To Sell NFT Art And Become A Millionaire?
Floor (Sweep)
What Does Sweeping Means In NFT?
Sweeping refers to purchasing all the NFTs in the secondary market that are at the lowest prices. The sweeping is usually done by the communities or teams that are interested in certain types of NFT arts.
Whale
What Is a Whale In NFT?
As we said above, there are chances that a community may buy all the NFTs. Well, not necessarily a company will do it. There are various individuals with a lot of cash in their bank account that prefer sweeping. These individuals are known as whales.
Airdrop
What Does Airdrop Refers To NFT?
Airdrop means that you will automatically receive the crypto tokens and NFTs in your crypto wallet. This is the technique used by Crypto wallet companies to give rewards to their users.
Also Read, What Is Metaverse NFT Marketplace? Secure Trading In Virtual Space!!
Wrapping Up
Well, these were some of the important terms that you must be aware of if you are trying your luck in NFTs. If you have come across any other term that you think we might have not included in the list then do tell us in the comments section. Our editorial team will soon update it in the article.
If you find this article interesting then do share it with your friends and help them in understanding the NFT market better.
