Marketplaces and Trading Mechanics Flashcards

What is 'sweeping the floor' in NFT trading?

Answer: Bulk-buying the cheapest listings in a collection

Sweeping the floor means purchasing multiple lowest-priced NFTs at once, which raises the collection's floor price.

What happens to an NFT listing when a collection is 'delisted' from a major marketplace like OpenSea?

Answer: The NFT still exists on-chain but loses visibility and trading volume on that platform

Delisting removes the collection from marketplace search and discovery, but the NFT remains on the blockchain and can still be traded elsewhere.

What is a 'reserve price' in an NFT auction?

Answer: The minimum price the seller will accept for the NFT to sell

A reserve price is a hidden or disclosed minimum threshold; if bidding doesn't reach it, the seller is not obligated to complete the sale.

How do marketplace aggregators like Gem or Blur benefit NFT buyers?

Answer: They allow buyers to purchase NFTs from multiple marketplaces in one transaction

Aggregators pull listings from multiple platforms, letting buyers fill carts across marketplaces and save on gas by bundling purchases.

What is 'bid sniping' in timed NFT auctions?

Answer: Placing a winning bid in the final moments before an auction ends

Bid sniping involves placing a higher bid seconds before auction close, leaving little time for competitors to respond.

On Ethereum-based marketplaces, what is 'WETH' and why is it used for NFT bids?

Answer: A wrapped version of ETH that enables making offers without actively monitoring the sale

WETH (Wrapped ETH) is an ERC-20 token equivalent to ETH that allows pre-authorized bids on NFTs, so the funds are ready when a seller accepts.

What does '1/1' mean when describing an NFT artwork?

Answer: A unique, one-of-a-kind piece with no editions or copies

1/1 (one-of-one) means the artwork was minted as a single unique token with no duplicates, maximizing its scarcity.