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Marketplaces and Trading Mechanics 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 Marketplaces and Trading Mechanics flashcards as text

  1. What is 'trait sniping' in generative NFT collection trading?

    Answer: Identifying and buying underpriced NFTs with rare traits before the market corrects the price

    Trait sniping uses rarity tools to find listings priced below their trait-adjusted value, buying before other traders notice the mispricing.

  2. How does a 'sealed-bid auction' differ from an open auction in NFT sales?

    Answer: All bids are submitted privately without participants seeing others' bids

    In a sealed-bid auction, each bidder submits their maximum offer without knowing competitors' bids, revealing all at once when the auction ends.

  3. What does the '30-day volume' statistic on a marketplace indicate about an NFT collection?

    Answer: The total value of NFTs traded in that collection over the last 30 days

    30-day volume measures total trading activity in ETH or USD over one month, helping assess a collection's ongoing market interest and liquidity.

  4. What risk does accepting an NFT 'offer' from an unknown party pose if the NFT was originally purchased at a high price?

    Answer: If the NFT is flagged as stolen, the buyer may lose both the NFT and payment

    Marketplaces can freeze stolen NFTs, meaning a buyer who unknowingly purchases one through an offer may have the NFT seized and lose their payment.

  5. What is 'listing duration' and how does it affect NFT sellers?

    Answer: The period during which an NFT is available for purchase at a set price before the listing expires

    Listing duration determines how long an NFT remains for sale at a fixed price; sellers often choose shorter durations to reprice if market conditions change.

  6. What is a 'gas war' in the context of popular NFT mints?

    Answer: When many buyers simultaneously compete to mint, driving gas fees to extreme levels

    Gas wars occur during high-demand mints when buyers outbid each other on gas fees to get their transactions confirmed first, sometimes costing more than the NFT itself.

  7. Which practice describes a creator 'rugpulling' an NFT project?

    Answer: Abandoning the project and disappearing with funds raised during the mint

    A rug pull is when founders exit the project, taking investor funds without delivering promised utility, artwork, or roadmap milestones.