Web3 Lingo

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Airdrop

Airdrops are rewards distributed to a project’s community members as an incentive mechanism for early adoption. For instance, individuals who used the Arbitrum chain before it had a token became eligible for an airdrop. When the Arbitrum Foundation launched its token, a portion was given away to the community for free.

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Altcoin

Altcoin refers to any cryptocurrency other than Bitcoin. It can be understood as an alternative coin, encompassing all cryptocurrencies that are not Bitcoin.

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Blockchain

Blockchain is a ledger that stores transactions in chronological order and cannot be altered. Transactions are grouped into “blocks” and these blocks are linked together in chronological order using cryptographic signatures.

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Alpha

Alpha refers to having an advantage over other market participants. This advantage often stems from information not yet available to all market participants. In trading, being privy to early information allows one to stay ahead of the market.

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Alpha groups

Alpha groups are communities of traders who collaborate to gain a collective edge over the market by sharing valuable information, networking, obtaining whitelists, and more.

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Aping

Aping refers to buying into a project without conducting proper research. It involves investing in a project first and conducting research later. Although this behavior is not recommended, it is prevalent in the crypto market due to its dynamics.

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Arbitrage

Arbitrage is the practice of buying and selling assets on different exchanges to profit from price differences. For example, if Bitcoin is trading at $40,000 on one exchange and$38,000 on another, purchasing BTC at $38,000 and selling it at$40,000 allows the trader to keep the price difference as profit.

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ATH

ATH is an acronym for “All-Time High”, which refers to the highest price a token or asset has ever reached historically.

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Bag holder

Bag holder is a term used to describe a trader who bought a token at a high price and failed to sell it quickly enough to make a profit. As a result, they are left with a devalued “bag” of tokens. It’s important to note that this does not imply the tokens are worthless but rather worth less than their initial purchase price.

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BTFD

BFTD is an acronym for “Buy The Fucking Dip”; it is a term used within the crypto community to encourage other traders to buy when prices are declining.

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BUIDL

BUIDL, a play on the term HODL, is used by Web3 development teams to indicate their commitment to actively building projects.

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Coin

Coin refers to a cryptocurrency that operates on its own blockchain, such as Ethereum, Avalanche, Fantom, etc.

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Decentralized Application (DApp)

A decentralized application (DApp) is a software application that runs on a distributed computing system, typically a blockchain, ensuring operations are decentralized, transparent, and censorship-resistant.

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DeFi

DeFi is an abbreviation for “Decentralized Finance, ” encompassing various financial applications built on decentralized networks.

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DeX

DeX stands for “Decentralized Exchange” and refers to platforms like Uniswap, Sushiswap, Pancakeswap, Apeswap, and Quickswap.

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Double spend

Double spending refers to attempting to spend the same cryptocurrency twice. It involves selling or transferring the same crypto to two different parties simultaneously.

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Circulating supply

Circulating supply represents the number of tokens that have been released into the market and are currently in circulation. For example, if a token has a total supply of 100 tokens but only 80 have been mined, the circulating supply is 80.

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ENS

The Ethereum Name Service (ENS) is a service that enables users to purchase unique names for their wallets. Instead of providing the entire wallet address (a long string of characters), users can simply share the name.eth address for others to send funds.

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CeX

CeX stands for “Centralized Exchange” like Coinbase, Binance, Etoro, and Bitfinex.

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DApp

DApp stands for “Decentralized Application”, which refers to an application built using decentralized technologies.

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DAO

DAO stands for “Decentralized Autonomous Organization”, a novel structure without a central leader. DAOs are formed by individuals from a community who collaborate towards a common goal. If BTC represents the new form of “money”, DAOs can be considered the new form of companies or LLCs.

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FUD

FUD stands for “Fear, Uncertainty, and Doubt” and is commonly used in the crypto community when negative news or skepticism arises. It refers to attempts to create fear or doubt about a particular cryptocurrency or the market as a whole.

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ICO

ICO stands for “Initial Coin Offering”, which is similar to traditional IPOs (initial public offerings). It involves investing in a project at an early stage before it gets listed on any exchange.

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IEO

IEO stands for “Initial Exchange Offering”, which is a fundraising event conducted by a cryptocurrency exchange. The exchange acts as an intermediary between the project and investors.

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IDO

IDO stands for “Initial DeX Offering”, which is a fundraising event conducted on a decentralized exchange (DeX). Similar to an IEO, the DeX acts as a middleman between the project and investors.

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HODL

HODL is a misspelling of “hold” that became a meme within the crypto community. It refers to the act of holding onto coins despite price declines, expressing a long-term investment strategy.

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Market cap

Market cap, short for market capitalization, is a metric used in the cryptocurrency market to indicate a coin’s dominance or value relative to the entire market.

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Moon

Moon refers to a cryptocurrency or token’s price rapidly surging to a significantly higher level within a short period. For example, a 50% increase in price in a single day.

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NFT

NFT stands for “Non-Fungible Token”. It represents a unique digital asset that cannot be replicated or interchanged on a one-to-one basis. Each NFT possesses distinct characteristics and ownership.

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NFT flipping

NFT flipping refers to buying NFTs at a certain price and selling them at a higher price. It involves minting or acquiring an NFT and subsequently selling it on the open market for a profit.

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NGMI

NGMI is an acronym for “Not Gonna Make It”. It is used by the crypto community on platforms like Twitter to express pessimism or acknowledge a trade or investment that has a high probability of resulting in losses.

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Ponzinomics

Ponzinomics refers to projects designed to enrich early investors at the expense of later participants. The name alludes to the Ponzi scheme, a fraudulent investment scheme that promises high returns but relies on new investors’ funds to pay existing participants.

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Pump and dump

Pump and dump refers to a scenario where a large group of investors collectively buy an asset, causing its price to “pump” or increase significantly. Subsequently, they sell their holdings, causing the price to “dump” or collapse. This often leads to losses for inexperienced investors who bought in at inflated prices.

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Rug pull

Rug pull refers to scams in the cryptocurrency space. It describes a situation where a project initially presents an enticing roadmap but, after gaining funds from investors, fails to deliver on its promises. The team behind the project abandons it, taking the funds with them.

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Satoshi Nakamoto

Satoshi Nakamoto is the pseudonymous individual or group credited with creating the Bitcoin protocol. Nakamoto published the Bitcoin whitepaper in 2008 and released the first Bitcoin software a year later. The true identity of Satoshi Nakamoto remains unknown.

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Shill

Shill refers to the act of unsolicitedly endorsing a coin or project in public. Traders who have invested in a particular coin may have an interest in shilling it, hoping to generate interest and increase its value.

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Stablecoin

A stablecoin is a type of cryptocurrency that is pegged to a stable asset, such as a fiat currency (e.g., USD, EUR) or a commodity like gold. Stablecoins aim to maintain a stable value and reduce price volatility by backing each unit with a known amount of the underlying asset.

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Staking

Staking refers to the act of holding and “locking up” tokens for a specific purpose. For example, on decentralized exchanges (DeXs), users stake their tokens to provide liquidity for other investors who wish to purchase that specific token. In return, the stakers receive a portion of the transaction fees generated.

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Web3

Web3 or Web 3.0 refers to the concept of the decentralized web. It encompasses the blockchain and decentralized technology ecosystems as a whole. The term is used to describe the next generation of the internet, where decentralized applications (DApps) and peer-to-peer interactions play a significant role.

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Weak hands

Weak hands refers to individuals who lack patience and sell their assets, often at a loss, during market downturns or price declines. In contrast, diamond hands refers to those who hold onto their investments regardless of market volatility.

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WAGMI

WAGMI (we’re all gonna make it) or WGMI (we gonna make it) are phrases used to express optimism within the crypto community. They convey the belief that everyone involved in the community will ultimately achieve success. They serve as a counterpoint to NGMI (not gonna make it).

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Whale

Whale refers to a large investor or entity holding a substantial amount of cryptocurrency or capital. Whales often have the ability to influence market movements, particularly for smaller altcoins, due to their significant capital holdings.

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Wen

Wen is a slang term derived from “when” and is used within Web3-specific lingo on social media platforms.