NFT Terminology Explained for NFT Beginners

NFT Terminology Explained for NFT Beginners

by Corporate Trash

1/7/2022

When you load up your wallet and buy an NFT, you will find quickly that Discord and Twitter NFT communities have their own language. From acronyms to memes to important phrases, this NFT dictionary is meant to help you feel welcomed as you join the NFT community. 

These terms are listed in alphabetical order, not in order of importance, but you’ll run into just about all of them when you’re buying NFTs.

The NFT Dictionary for NFT Beginners

Airdrop

A token or NFT that is either sent to a user or is available to claim for a user, based on usage or ownership of a certain token or NFT. 

Example: Bored Ape Yacht Club owners were airdropped a “mutant serum” to transform their ape — creating a Mutant Ape, adding another NFT and additional value to their collection for minimal cost. Another example: Eligible ENS domain buyers were rewarded with an $ENS token claim amount, which people could sell if they chose to. 

Learn more about the $ENS airdrop:

Alpha

Short for hearing about NFT news or drops before many others are aware of it, providing collectors with an edge against the rest of the market.

Aping in

Short for buying a lot of one token or NFT, or putting a lot of investment in one area.

Blue Chip

Used to describe the highest tier of NFTs. Note: any list of “blue-chip” NFTs is evolving and highly subjective. 

Cold Wallet

A cryptocurrency wallet not connected to the internet, where many choose to store their highest value NFTs. This wallet has a higher amount of security and is therefore less vulnerable to being hacked. Examples: Ledger and Trezor wallets

DAO

Stands for Decentralized Autonomous Organization. This is an organization run by a group of people (for example, NFT token owners) who establish their own rules, and make decisions based on smart contracts on a blockchain. Every rule, proposal vote and transaction is recorded on the blockchain, removing the need for any central entity. 

Community governance, collective ownership, and artist collectives are benefits to a DAO. Examples of DAOs related to NFTs: SharkDAO (collecting Nouns), APE DAO (collecting NFTs from the Bored Ape ecosystem).

Degen

Short for degenerate. Describes someone who trades NFTs without much due diligence or research beforehand. It is also sometimes jokingly used in the space to describe anyone who is deeply involved and/or spends a ton of time on NFT Twitter or on Discord.

Diamond Hands

To describe when someone holds an NFT for a long period of time — often including through periods of volatility — without selling it.

Drop

A time when a new NFT is minting.

DYOR

Stands for “do your own research.” Commonly used when discussing new NFTs or token opportunities in order to caution others. Do your own research before buying into a project or token.

ENS (.eth)

Stands for Ethereum Name Service, a service that sells .eth domains. These domains shorten your long Ethereum wallet address to something.eth, making it easier to send and receive Ethereum and for others ot identify your wallet.

ERC-20

These are fungible tokens (all of them are the same value) like $LINK, $SHIB, and other cryptocurrency. ERC stands for “Ethereum Request for Comment,” a protocol used to suggest improvements to the Ethereum network, and the number is the ID of the proposal.

ERC-721

An Ethereum token standard that allows you to create non-fungible tokens. ERC-721 tokens are NFTs. Some examples: Cryptokitties, Cool Cats, Axies (in Axie Infinity), Gods Unchained cards, Sandbox Game Land, Decentraland items, Bored Ape Yacht Club

Each is 100% unique — no two are the same — and has static metadata, one for each token ID, written into the smart contract. This increases deployment costs and reduces flexibility. Think of ERC-721 as one vending machine for one item – NFTs.

ERC-1155

A newer Ethereum multi-token standard that allows you to create fungible, semi-fungible, and non-fungible tokens, and interact with tokens in multiple states. Examples of 1155: Ghxsts, Gutter Cat Gang, or Meta Key

Supports an infinite number of tokens, linking to multiple URLs, and batch transfers. It also localizes metadata in multiple languages. Think of ERC-1155 as one vending machine for multiple items.

Floor price

The current lowest price of an NFT that is on sale in an NFT collection. It is monitored often by many collectors for investment purposes. Valuing your collection by floor price is the lowest way to value your NFTs.

FUD

Stands for “fear, uncertainty, and doubt.” Can be used as “fudding” when somebody downplays or talks negatively about a certain NFT collection or token, regardless whether the information is true or false. Widespread “FUD” can have an adverse effect on the collection’s floor price. 

Gas War

Used when a popular NFT drop is happening and everybody ratchets up their gas fees, hoping to incentivize miners to prioritize their transaction over others. As a result, gas prices skyrocket during these times.

Generative Art

Refers to an NFT that has been created with the use of an autonomous system, including code or alphanumeric strings on the blockchain. Example: Art Blocks.

GL

Stands for “good luck.”

GM

Stands for “good morning.”

GN

Stands for “good night”

HODL

Means “hold” or “hold on for dear life.” Refers to someone choosing to hold onto their NFT rather than sell it. The term originates with a 2013 post in a Bitcoin forum. 

Hot Wallet

A cryptocurrency wallet which is connected to the internet and can be vulnerable to scammers, but makes it quick and easy to connect to sites to buy, sell, and mint NFTs. Example of a hot wallet: MetaMask.

Metadata

Describes the multimedia content of an NFT, commonly stored in the smart contract. Names of the traits for a Bored Ape — for example — are stored in the NFT’s metadata.

NFA

Stands for “not financial advice.” Commonly used when discussing new NFTs or token opportunities in order to caution others. 

Non-Generative Art

Refers to an NFT that is hand-drawn or human-created art without the use of an autonomous system. Example: Ghxsts

Paper Hands

To describe when someone sells an NFT soon after obtaining it, sometimes for a loss. Some also use this to describe people who sell for a profit “too soon” in their eyes.

Keep in mind: it is important to remember to not judge people on when they choose to sell an NFT, as everyone’s situation is different.

P2E

Stands for “play to earn.” Refers to a type of game like Axie Infinity and Gods Unchained where you can earn cryptocurrency (or other in-game rewards) for playing. Many of these games utilize NFTs as in-game characters or cards to use within the game.

PFP

Stands for “profile picture.” Commonly refers to a type of NFT where its purpose is to be used as an identity and internet “social capital” as a profile picture across social networks. These NFTs sometimes have many other privileges that come with ownership. Example: CryptoPunks, Cool Cats, Gutter Cat Gang. 

Rugged

A verb referring to “rug pull,” like somebody is pulling the metaphorical rug out from under you. Used when a situation turns negative in the NFT space; commonly used when an NFT project scams its community by disappearing soon after the sale has ended, or not fulfilling promises.

Shill

When someone pitches you their NFT in an effort to get you to buy it; most times it is unsolicited.

Spaces

Short for Twitter Spaces, an audio event on Twitter where speakers discuss news in the NFT space and people in the community tune in. Community members can be invited up to discuss topics with the speakers. 

Stages

Short for Discord Stages, an audio event in a server where speakers discuss their NFT project and people in the community tune in. Community members can be invited up to discuss topics with the speakers. Discord is often a main source of communication for NFT projects. 

Staking

When you “lock up” an NFT on a platform to receive rewards and sometimes other privileges. This can allow NFT holders to earn income (usually in the form of an ERC-20 token) while still owning their NFTs. 

Sweeping the floor

When somebody buys up multiple floor price NFTs of a certain collection at once, either by buying them individually or by using a tool like Genie

WAGMI

Stands for “We’re all gonna make it.” Used as an expression of positivity and optimism in NFT communities.

WGMI

Stands for “We’re gonna make it.” 

Whitelist

Often abbreviate as “WL”. A special list that gains early access to an NFT drop before the general public. Often, the general public will compete to get on a whitelist for a project the community is excited about. These are also often called “allowlists” or other names related to projects, but ultimately they all have the same meaning — early access to mint an NFT before the public.


We hope this list gives you some insight into decoding the language of NFT degens. Although it seems like a lot if you’re just getting started, you’ll get used to these terms once you start to collect your first NFTs. Soon enough, you’ll be aping in right along with us — NFA… DYOR. 

Follow Corporate Trash on Twitter: @corporatetrash1

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