Understanding the terminology within web3 can be challenging, especially for newcomers.
Specifically when it comes to NFTs, it’s a subculture that has its own language.
We believe it’s important to educate and inform to onboard the next generation of adopters using the technology we all know and love.
Below is an outline of some phrases and terms you may come across in your journey:
1/1 Art
An artist that creates work usually works within specific releases including 1-of-1 pieces or editions.
Airdrop
Sending coins or tokens to wallets often for free based on criteria such as ownership to provide value as a way of retaining and thanking supporters.
Alpha
Generally considered chasing the next hot thing, alpha callers predict what might increase in price based on instinct and track record. Much like astrology and horoscopes, they are often inaccurate and unreliable sources of information. This leads large groups of people to follow and often temporarily inflate the price of something. If you are here primarily to trade and flip and potentially make money, prioritizing Alpha may be a good place to start learning the ropes quickly. This will help you understand what makes a good call and trust your instincts long-term.
Aping in
Following the lead of others by copying what they do without much thought involved.
Bags
Based on what items you own. If your bags are fully packed, you may have been overzealous and bought too many NFTs. Your bags could be full of rugs but those are usually reserved for the hidden folder.
Blockchain
A database of recorded transactions available for everyone to track a ledger of assets. Typically shared among nodes on a network for distribution. Popular blockchains include Bitcoin, Ethereum, Solana and Ripple related to cryptocurrency.
Blue chip
A collection that has a long history, seen as high value and is a well-recognized name in the space such as CryptoPunks.
DAO
Decentralized Autonomous Organization. A system of governance handled by a contract that allows token owners to vote or have their say in the direction something takes.
Ded
Short for dead. When something is hilarious you die because it’s so funny.
Degen
Short for degenerate used in a derogatory sense or in jest for someone who gambles with speculative assets. It can also be used as a verb for doing something highly risky.
DYOR
Do your own research. Typically a phrase that is made by alpha callers so they do not feel responsible if you lose money copying their trades.
Floor Price
The lowest price of a token available on the secondary market for purchase.
FOMO
An acronym for the fear of missing out. A feeling one gets when they see something interesting mentioned that they might not be a part of. “I fomo’ed into this project because I saw all my friends on Twitter aping in”.
FUD
Fear, uncertainty and doubt. When someone complains about something involving a collection they are “fudding”. It can sometimes lead to positive conversation or the individual cannot be reasoned with and just wants to be heard or is having a bad time.
Gas
A fee you pay to complete a transaction on the blockchain. The price fluctuates based on network demand and covers the miner’s cost for processing it.
Generative
A set of rules provides a system for creating work that outputs combinations in a specific way to deliver predefined and yet randomization for displaying results.
GM
Good morning. It’s a way to start the day and connect with others through the community on social media.
GN
Good night. Not as common as GM but it’s a nice way to end your day.
GOAT
Greatest of all time. A term referring to a leader in the space who has earned respect.
IRL
In real life. Everything that happens online can be a quasi-metaverse experience as many are larping as cartoon animals but we all have to get out into the world at some point.
LFG
Let’s f@cking go! When you are super stoked about the outlook on something.
Liquidity
How available you can convert a token you own into another asset such as FIAT based on the ability to sell the asset.
Maxi
Someone who is a maximalist. An Ethereum maxi only works within one blockchain.
Metaverse
A digital experience where you can often interact as a character in another world.
Mint
This is the process of recording a token on the blockchain usually by a creator or collector. Minting with a cryptocurrency wallet returns a token with either art or some form of promised utility. This can then be held, transferred or sold on secondary markets.
Moon
When something takes off in overall price. Wen moon? “Elon tweeted about dogecoin again, it’s going to moon!”
NGMI
Not going to make it. Used to spite someone or used ironically on yourself for a bad decision.
NFA
Not financial advice. As with anything in the space, nobody wants to feel bad about telling someone something they might lose money on.
NFT
Non-fungible Token. Meaning that something is unique and can’t be replaced. Laughed maniacally at by the right-click save/JPEG naysayers.
OG
OG stands for original gangster or originator meaning the first to do it. Pokémon was the OG collectible.
On-chain
An NFT that is fully on-chain stores the image as code and exists for as long as the blockchain exists. Versus IPFS which points to a URL of an image.
Paper Hands
Someone who sells, often immediately for a loss because of a bad trade or lack of faith in the long-term value of a token they own.
PFP
Short for Profile Picture. A popular format for art that is frequently used as a representation of our personas online.
Rarity
The system of categorizing the rank of a token within a collection. Based on specific combinations of traits, one token may be worth more than another because fewer instances occur. Some marketplaces have a built-in ranking system or third-party tools to help you determine how rare an item could be.
Roadmap
This is usually a list of items from collections with promises or goals outlined with specific sequences and time frames to look forward to as a token owner.
Rug
A common phrase as it relates to an NFT collection. When you have the rug pulled from under you, it is a shock and surprise that you have been “rugged”. An unfortunately common occurrence where projects can raise funds and disappear or founders “die during mint” and other such nonsense that might happen. Often seen as a right of passage.
Derivative
A spin-off collection of something first or original. Following the success of a specific collection, inspiring copycats to capitalize on the success around hype. Often timely and usually associated with rugs or money grabs with few exceptions. Unique derivatives pay homage to the original collection while being unique in their own right or created simply for fun. Understanding provenance is important.
REKT
When you get wrecked, you usually make a bad trade or purchase assets that do not meet your expectations.
Shilling
When someone is promoting their bags or collection in an obnoxious way which is disingenuous and with clear motivation either consciously or subconsciously mainly to get other people to buy in.
Sweep
Buying more than one token from a collection is considered a sweep. For example, a whale could purchase 20 items from a collection for a mega sweep.
Utility
When you own an NFT token that offers use extending it’s capability. Such as a membership access pass, or the ability to play a game in the metaverse.
WAGMI
We’re all going to make it. A term commonly used by influencers to assume as if everyone who enters the space will make lots of money.
Wallet
This is where to store cryptocurrency and/or NFTs. A crypto wallet is a digital wallet accessed by a unique seed phrase. There are hot wallets for minting and cold wallets for safekeeping. The best practice for storing your prized valuables is having cold storage via a vault or product like a hardware ledger.
This is an introduction into the lingo you may see flying around. We aim to provide a list of ongoing acronyms, words or phrases and help decipher them so you know what is being referenced.
We hope this guide gives you more confidence the next time you chat with someone online, whether on Twitter, Discord or somewhere in the metaverse!
If there is anything we missed, feel free to send us some suggestions to include.
