The crypto community is filled with many terms, abbreviations, confusing slang, and intentional misspellings that leave many newcomers baffled. Some of these are essential knowledge for entering the crypto space, while others are merely 'bored' slang. This article will introduce some nonsensical industry jargon. I hope that after mastering these terms, you can feel the true joy of being part of the crypto community.

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1.GAS WAR

Gas War occurs when a large number of users make transactions simultaneously, competing to raise Gas fees in order to prioritize their transactions. For example, the release of $Floki Inu in 2022 led to a #Gas War on the Ethereum network, with transaction fees skyrocketing to hundreds of dollars. Gas Wars are particularly common when popular tokens are listed, and users can set a reasonable Gas fee cap in advance to avoid losses due to excessively high fees.

2.Impermanent Loss

Impermanent loss refers to the reduction in the value of a holder's assets due to price fluctuations when providing liquidity. For example, when providing liquidity to the SHIB/ETH liquidity pool, if the price fluctuates too much, you may face impermanent loss when withdrawing liquidity. Liquidity providers should carefully assess market volatility and consider whether they can bear such losses.

3.Slippage

Slippage refers to the difference between the actual execution price of a market order and the expected price, usually occurring in times of low liquidity. In 2023, the trading volume of $CatCoin surged, leading investors to find that the actual execution price was significantly higher than expected, causing slippage. To avoid excessive slippage, investors can choose times with higher liquidity during trading sessions and set slippage tolerance on trading platforms to minimize losses.

4.Transaction Tax

Transaction tax is a portion of the fee automatically deducted during each token transaction, used to reward holders, burn tokens, or replenish liquidity pools, etc. For example, if a token has a 10% transaction tax mechanism, part of it is used to burn tokens, while another part is allocated to holders, thus incentivizing long-term holding and reducing circulating supply. However, excessively high transaction taxes may also reduce the liquidity of the token, so a balance between incentives and market activity is necessary during design.

5.Burn

#Burn refers to the destruction of NFTs. For instance, if a collection originally comprised of 10,000 NFTs only sells 5,000, the development team may decide to 'burn' the remaining 5,000 NFTs; additionally, some projects allow holders to 'burn' two NFTs to mint a rarer new token.

6.Floor

The project's #Floor or Floor Price refers to the minimum price for purchasing any NFT within the project on the secondary market. Floor is the most popular metric for tracking the performance of a project over time or measuring its performance compared to other projects.

7.Airdrop

When you receive #Airdrop‬ , your wallet will automatically receive a certain amount of a digital asset or new NFT without any cost to you. This practice is not only prevalent in the digital asset space but has also become a popular way for NFT projects to incentivize early holders, such as using new artworks as NFT airdrops. This is commonly known as an 'airdrop'.

8.Snapshot

#Snapshot is related to the airdrop mentioned above. A team often takes a snapshot at a certain point in time to determine eligibility for an airdrop. For example, if a snapshot is taken at 4 PM UTC on November 11, anyone holding NFT X in their wallet at that time will receive a free NFT Y the following week.

9.Whale

#Whale refers to individuals who hold large amounts of capital, either still to be invested or who have already invested in high-priced NFT projects. Therefore, an account holding a thousand E or owning 200 Bored Apes would be considered a whale. Whales have the ability to drive the market in both directions through large buy or sell orders of specific collectibles, and their presence plays an important role.

If anyone has more industry slang they want to know about, feel free to comment!