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Art NFT Marketplaces and Trading Flashcards

7 cards from real NFT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Art NFT Marketplaces and Trading flashcards as text

  1. What is 'wash trading' in NFT marketplaces, and why is it problematic?

    Answer: Artificially inflating an NFT's trading volume by buying and selling to oneself

    Wash trading involves a user selling NFTs to wallets they control to fake trading activity, artificially inflating perceived popularity and value.

  2. Which NFT marketplace launched its own token ($BLUR) and used token rewards to incentivize trading volume?

    Answer: Blur

    Blur launched the $BLUR token and distributed rewards to traders, rapidly capturing significant market share from OpenSea.

  3. What does 'provenance' mean when evaluating an art NFT's value on a marketplace?

    Answer: The verified ownership history and origin of the NFT

    Provenance refers to the documented history of an NFT's ownership, including the original creator and all subsequent owners, which is permanently recorded on-chain.

  4. On most NFT marketplaces, what is the typical range for creator royalties on secondary sales?

    Answer: 2.5% to 10%

    Creator royalties on secondary NFT sales typically range from 2.5% to 10%, with 5-10% being most common for art NFTs.

  5. What is a 'bundle sale' on an NFT marketplace?

    Answer: Selling multiple NFTs together as a package for a single price

    A bundle sale allows sellers to group multiple NFTs together and offer them as a package deal for a combined price.

  6. Which blockchain's high gas fees historically pushed many NFT art collectors toward alternatives like Polygon or Solana?

    Answer: Ethereum

    Ethereum's notoriously high and volatile gas fees made smaller NFT transactions economically unviable, driving users to cheaper alternatives.

  7. What is the significance of the 'verified' checkmark on an NFT collection page on OpenSea?

    Answer: The collection meets a minimum trading volume threshold and has verified ownership

    OpenSea's verification badge indicates the collection has reached significant trading volume and the creator has confirmed ownership of the collection.