Marketplaces and Trading Mechanics Flashcards

What does 'floor price' mean in an NFT marketplace?

Answer: The lowest listed price for any NFT in a collection

Floor price is the cheapest available listing in a collection, representing the minimum cost to enter that collection.

Which marketplace pioneered the 'lazy minting' feature allowing creators to list NFTs without paying upfront gas fees?

Answer: OpenSea

OpenSea introduced lazy minting so creators could list NFTs for free, with minting costs deferred to the buyer at purchase.

What is a 'Dutch auction' in the context of NFT drops?

Answer: An auction where the price starts high and decreases until someone buys

A Dutch auction begins at a high price that gradually drops, rewarding buyers who wait but risking missing out if someone else buys first.

What is 'wash trading' in NFT markets?

Answer: Buying and selling an NFT to yourself to artificially inflate volume

Wash trading involves an actor buying their own NFT to create fake volume and price history, misleading other traders.

On most NFT marketplaces, what does 'make an offer' allow a buyer to do?

Answer: Propose a price below the listed price for the seller to accept or decline

Making an offer lets buyers propose their own price, which the seller can accept, counter, or ignore.

What is the purpose of a 'whitelist' (or allowlist) in NFT drops?

Answer: A pre-approved list of wallets that can mint before the public

Whitelists grant early or guaranteed mint access to selected wallets, often rewarding community engagement before a public sale.

Which metric best indicates genuine trading activity rather than artificial inflation on an NFT marketplace?

Answer: Number of unique buyers and sellers

A high ratio of unique buyers and sellers relative to transaction count suggests organic demand rather than wash trading.