NFT Coin 2 — Questions and Answers
Question 1: In NFT art marketplaces, what does a 'coin' typically refer to when used as a unit of exchange?
- A physical gold coin used as collateral
- A fungible cryptocurrency token used to buy and sell NFTs (Correct answer)
- A non-fungible token shaped like a coin
- A loyalty point issued by an art gallery
Correct answer: A fungible cryptocurrency token used to buy and sell NFTs
In NFT art marketplaces, 'coin' typically refers to a fungible cryptocurrency token like ETH or SOL used to transact.
Question 2: Which blockchain's native coin is most commonly used to purchase NFT art on OpenSea?
- Bitcoin (BTC)
- Ether (ETH) (Correct answer)
- Dogecoin (DOGE)
- Litecoin (LTC)
Correct answer: Ether (ETH)
Ether (ETH), the native coin of the Ethereum blockchain, is the dominant currency for NFT art transactions on OpenSea.
Question 3: What is 'minting' in the context of coin-backed NFT art projects?
- Melting down physical coins to create sculptures
- Creating a new NFT token on the blockchain for the first time (Correct answer)
- Converting fiat currency into stablecoins
- Auditing a coin's supply on-chain
Correct answer: Creating a new NFT token on the blockchain for the first time
Minting means creating and recording a new NFT on the blockchain, making it available for ownership.
Question 4: A collector pays 2 ETH for a coin-themed NFT artwork. If ETH is priced at $2,000, what is the USD value of the purchase?
- $1,000
- $2,000
- $4,000 (Correct answer)
- $40,000
Correct answer: $4,000
2 ETH × $2,000 per ETH = $4,000 USD.
Question 5: What differentiates a 'coin' from a 'token' in blockchain terminology relevant to NFT art?
- Coins exist on their own native blockchain; tokens are built on top of existing blockchains (Correct answer)
- Coins are always non-fungible; tokens are always fungible
- Coins have artistic value; tokens do not
- Coins can only be used on centralized exchanges
Correct answer: Coins exist on their own native blockchain; tokens are built on top of existing blockchains
Coins (like ETH or SOL) operate on their own native blockchains, while tokens (like ERC-20s) are built on top of those networks.
Question 6: Which type of wallet do NFT art buyers use to store both their coins and their NFTs?
- A hardware wallet only
- A self-custodial crypto wallet such as MetaMask (Correct answer)
- A traditional bank savings account
- A PayPal digital wallet
Correct answer: A self-custodial crypto wallet such as MetaMask
Self-custodial wallets like MetaMask hold both coins (ETH) and NFTs, giving users full control of their private keys.
Question 7: In numismatic-inspired NFT art, what does 'provenance' track similarly to the history recorded on a rare coin's certificate?
- The gas fees paid during each transaction
- The ownership history of an NFT recorded on the blockchain (Correct answer)
- The coin supply cap of the issuing platform
- The artist's social media follower count
Correct answer: The ownership history of an NFT recorded on the blockchain
Blockchain provenance records every owner of an NFT in an immutable ledger, analogous to a coin's documented ownership history.
NFT Coin 2
In NFT art marketplaces, what does a 'coin' typically refer to when used as a unit of exchange?