Starting out your NFT journey as a newbie can be discouraging and even frustrating sometimes due to the NFT terms and abbreviations used by the nerds in the NFT atmosphere. NFT nerds use a bunch of terms, abbreviations, silly slang, and intentional misspellings that most newcomers will find hard to understand. And as a newbie, this can halt or delay your learning process.
However, it’s very essential for you to understand every possible term and abbreviation to fully participate in the space. With a lot to keep up with we have researched and compiled a list of all relevant terms, definitions, slang, and abbreviations in the NFT space for you.
All that being said, here are the 50 most important terms you need to know. These terms and abbreviations will help you understand and participate in the NFT sphere.
NFT (Non-fungible token)
NFT, also called a “non-fungible token”. NFTs are certificates that show you own a digital item, which can be original versions of videos, tweets, or memes. They can be anything digital but a lot of the excitement is around digital art.
A non-fungible token cannot be traded for another asset because it is unique in design and has a singular identifying token on the Ethereum blockchain. We have explained intensively what NFTs are and how you can buy an NFT.
ETH is the short form of Ether, the currency used to buy and sell NFT assets on the Ethereum blockchain. For example: “I spent 20 ETH on this NFT collection”.
SFT stands for Semi-fungible token. There are some NFT projects that have multiples of the same assets. For example, someone can mint multiple copies of his work as an NFT.
The whole goal of NFTs is to put assets on a blockchain for decentralized ownership and transfer. Don’t get too caught up between SFT and NFT, they are basically the same.
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Decentralization is a big theme in the tech industry, meaning transferring power from governments and big companies into the hands of users.
Tokenization means that each NFT is unique and cannot be replicated or destroyed. There is no central issuer or controller. It is controlled by a decentralized authority called the blockchain, which allows every person to own an identical copy of the same asset.
Web3.0 is the next generation of the internet, the next iteration in the evolution of the World Wide Web. Web3 aims to solve through decentralization (also other ways, but I’m focusing on that part).
Instead of exchanging our data to upload content online, users can become participants and shareholders by earning tokens on the blockchain system, which will allow them to have a say over how their data is run.
When you receive an ‘airdrop’, you automatically get a certain amount of a specific cryptocurrency or a new NFT dropped into your wallet for free.
It’s long been a common practice in the crypto space but has also become a popular way for NFT projects to reward their early adopters with new artworks.
To burn an NFT essentially means to destroy it just like in crypto. If only 500 NFTs are sold in a collection that was intended to consist of 800 for instance, the team may decide to ‘burn’ the remaining 300.
DAO stands for “decentralized autonomous organization”. It broadly refers to an internet community that is completely owned by members and has no central leadership.
NFT from a project like MOON BOYZ, you and all the other owners have voting rights and control over the future actions and overall direction of the project.
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Sales between creator and collector is known as the “Primary NFT Market”, is usually conducted directly on the creator’s own website. Afterward, collectors can trade amongst each other.
Also, note that the secondary market in the NFT industry is much more vibrant than the primary market in terms of the number of buyers and volume.
The ‘floor’ or ‘floor price’ of a project is simply the lowest price at which you can buy an NFT from that project on the secondary market.
It’s the most popular metric for tracking a project’s performance over time and its relative success compared to others.
FOMO stands for “Fear of Missing Out”. You’ll see it when an NFT project you don’t own goes up in price. This abbreviation is also widely used in the crypto space.
FUD stands for “Fear, Uncertainty, and Doubt”. You’ll see it used when someone questions the legitimacy of an NFT project.
However, FUD isn’t bad. It’s good to ask relevant questions and do your research of potential points of failure.
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Minting an NFT refers to the process of turning a digital file into a collectible or digital asset (token), which is mostly done on the Ethereum network. So, you will need to buy some Ethereum if that’s the network you want to use.
Note that some people misuse the term as buying an NFT at a pre-sale price. receives a randomly generated asset.
Hypersonic is an adjective that relates to anything that can travel faster than five times the speed of sound. The term is mostly used on NFTs that is being pumped.
This term describes when an NFT asset is rising in price quickly.
This term describes when a person is promoting an asset they created or bought i.e., any project they’ve invested in.
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To “ape into” means purchasing an NFT in an irresponsible manner, out of FOMO, with too much money relative to your account size, and/or without having done proper research and following due diligence.
Just as you might be familiar with gas fees in crypto trading, the price of a transaction on the blockchain is referred to as ‘gas’. Gas is necessary, especially on the Ethereum network. Check out the gas prices on etherscan powered by Ethereum.
Somewhat important in the NFTs sphere PFP means for Profile Pic. With many new NFTs projects being launched every single day, many use them as their profile picture to show their ownership and possibly increase its popularity depending on one’s clout.
Liquid when there are lots of buyers and sellers of that particular project intending to buy and sell. A liquid NFT project is considered to be a good project because it means the NFT can be converted to Ethereum whenever the owner is ready to buy or sell.
The opposite of liquid. When a project is illiquid then there is not a lot of buying and selling activity. Some projects die out eventually for not having any boy-and-sell activity.
No one expects you to come up with all these terms and abbreviations overnight. But, it’s good to know what they all mean so that you can follow conversations and read white papers. Some of them have been around for a long time, but some are fairly new.
Read Also: How to Mint an NFT