Cryptocurrency NFTs and Digital Assets 2

Question 1

What is the 'floor price' of an NFT collection?

Accepted Answer

The lowest listed price for any NFT currently available in that collection

Answer

The highest price any NFT in the collection has ever sold for

Answer

The average price of all NFTs sold in the past 24 hours

Answer

The price set by the creator at the time of minting

Question 2

What role does IPFS (InterPlanetary File System) play in NFT infrastructure?

Accepted Answer

It provides decentralized storage for NFT media files referenced by on-chain metadata

Answer

It processes NFT smart contract transactions on-chain

Answer

It validates ownership signatures for NFT transfers

Answer

It calculates gas fees for minting operations

Question 3

What is 'wash trading' in NFT markets?

Accepted Answer

A seller buying their own NFTs repeatedly to artificially inflate volume and price

Answer

Cleaning metadata of an NFT before resale

Answer

Exchanging NFTs across multiple blockchains simultaneously

Answer

Burning old NFTs to mint fresh versions

Question 4

What is a 'generative NFT' collection?

Accepted Answer

NFTs programmatically assembled from trait layers using algorithms, producing thousands of unique combinations

Answer

NFTs created manually by artists one at a time

Answer

NFTs that change appearance based on real-world data

Answer

NFTs that can generate passive income through staking

Question 5

What is 'token gating'?

Accepted Answer

Restricting access to content, events, or communities based on NFT or token ownership

Answer

Locking a token in a smart contract to prevent transfers

Answer

A security process to verify a token's smart contract code

Answer

A mechanism to set a minimum resale price for an NFT

Question 6

Which blockchain hosts the majority of NFT trading volume by historical standards?

Accepted Answer

Ethereum

Answer

Bitcoin

Answer

Solana

Answer

Cardano

Question 7

What is a 'soul-bound token' (SBT)?

Accepted Answer

A non-transferable token permanently tied to a wallet representing credentials or identity

Answer

An NFT that gains value as its owner holds it longer

Answer

An NFT that can only be sold back to its original creator

Answer

A token locked in a staking contract for a fixed period