What is NFT | What are its characteristics?

NFT nerds use a bunch of terms and abbreviations which seems confusing for most of the beginners who have started learning and investing in NFT. Some Newcomers see it as complete nonsense. These NFT terms are essential if you want to participate in the NFT space. Hence, it is vital for communicating with NFT investors. 

If you have started with the NFT world. In this article, we will cover What is NFT and the important terms you must know before investing in NFTs. 

Wondering What is NFT? NFT nerds use a bunch of terms and abbreviations which seems confusing for most of the beginners who have started...

What is NFT?

Further, we will now cover all the NFT terms used in the NFT world. Well, there are lots of NFT technical terms, but we will cover all the most important NFT topics you should know. 

Well, here is the complete information about the 23 important NFT terms you should know.

10K project

10K project is NFT terms signifies an NFT collection made up of 10,000 avatars. It was arguably a concept pioneered by the CryptoPunks collections in 2017. It doesn’t mean it exactly has 10,000 avatars. However, this term is used to refer to this type of collection rather than the exact number of avatars.

Airdrop

Airdrop is the term used for automatically receiving a certain amount of specific cryptocurrency. Or you can say a New NFT dropped into your wallet for free. In general, it has been a common practice in the crypto space but has also become a very popular way for NFT projects to reward their early adopters with new artwork. 

Apeing 

Apeing is a popular term used for indicating buying something in an irresponsive manner. It is out of FOMO, that more focuses on money relative to your account size. And it also means something has been done without proper diligence. Some popular examples include CryptoPunks, Bored Ape Yacht Club, Cool Cats, Gutter Cat gang, etc. 

Avatar Project

An avatar project is fundamentally similar to the term 10k projects. It is considered the collection of a few thousand NFT avatars like the CryptoPunks, Bored Ape Yacht Club, Gutter Cat Gang, Cool Cats, etc. 

Burn 

In the NFT virtual world, the term Burn means to destroy it. For example, let’s say in a situation where only 5,000 NFTs are sold in a collection. However, the company’s target is to achieve 10,000. Hence the teams may decide to burn the remaining 5,000 NFTs. Sometimes, other projects let the users receive a new and rare one. 

Must Read:-How to Make Money with NFT?

DAO 

The term DAO stands for Decentralized Autonomous Organization. So, in case you own an NFT from a project like Head DAO, you will get the authority to vote and control future action, and the overall direction of the project. This type of similar structure is implemented for more community-driven and secure ongoing support. 

Diamond hands 

The term Diamond hands is one of the most popular slang terms used in the world of crypto and NFTs. It is an asset gained through price volatility, negative news, poor market sentiment, and all kinds of FUD.

Floor

The term ‘floor’ or ‘floor price is used for the lowest price at which you can purchase an NFT from that project on the secondary market. In the market, it matters because it is a popular metric for tracking a project’s performance over time and its relative success as compared to others. 

FUD

FUD is an abbreviation of Fear, Uncertainty, and Doubt. In most cases, the term FUD is used for describing negative news stories, tweets, Discord Messages, etc. Most of the time FUD is inaccurate and completely false. It plays an important role in the drops in cryptocurrencies of NFTs. 

Must Read:-How to Sell NFT in Metaverse?

Gas 

The term Gas signifies the price for making a transaction on the blockchain. When you purchase the NFT on a blockchain like Solana, gas is negligible. The $50 gas fee is the lowest on the Ethereum platform. And also it depends on the activity on the network. 

Gas War 

It is the most common scenario on the Ethereum platform and is somewhat of a rite of passage for newcomers. When a popular NFT collection launches in the market, with over 100,000 people fighting for 10,000 NFTs. To complete and win a situation, you need to increase your gas fee and outbid the others for your transaction to go through. This process is called Gas War. 

Generative Art

Generative art is innovative and a lot more attractive for NFT digital art world. In recent years, Generative art is used for creating major collections like Bored Ape Yacht Club, Cool Cats, Sup Ducks, Pudgy Penguins, etc. 

In simple words, it means all the NFTs in each of the collections have some traits in common. These traits include clothes, skin, fur color, eye type, headwear, background-color types, etc. With the current technology, it is possible to mix all these traits and create unique 10,000 NFTs.

Must Read:-How To Check NFT Ranking | Get to Know Your NFT Rank?

Metadata

A unique and necessary data making the NFT exactly is called Metadata. Interestingly, it defines a piece of art or a collectible look. So, that’s why you have to refresh the metadata on OpenSea before you can see how your minted NFT looks. 

Minting

The buying process of a completely new NFT from the creator is called Minting. Basically, minting is used for creating NFT on the blockchain. 

MM

MM stands for Metamask. It is the most popular NFT wallet in the Ethereum ecosystem. 

OS

OS stands for OpenSea. It is the leading NFT marketplace on Ethereum. 

Paper Hands

Paper Hands is fundamentally oppositive of the “diamond hands”. Most often, it is used to refer to someone who sells something.

Rugpull

Rugpull is an NFT scam that I hope you will never experience! It is most commonly a scam where the people seemingly legit disappear with all the money immediately after the launch. 

Must Read:-How to Mint NFT Without Gas Fee?

Sweep 

A sweep is a most commonly uttered term that means to purchase a large number of the cheapest NFTs in a collection on the secondary market. It is sometimes done by a Team solution and asked by the community to do this. Most recently, it may be done by a single individual referred to as ‘Whale’.

Whale

A whale is considered someone with a lot of money and has the capital to invest in a high-valued NFT project. Someone who has 1,000 ETH in their bank account would be considered a whale. It is like someone with 200 Bored Apes would. Whales are the most important players in the market and have the power to move markets, either upward by buying a lot from a given collection or downward by selling. 

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