NFT Marketplaces and Trading Mechanics 2

Question 1

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

Accepted Answer

The lowest listed price for any NFT in a collection

Answer

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

Question 2

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

Accepted Answer

OpenSea

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

What is 'wash trading' in NFT markets?

Accepted Answer

Buying and selling an NFT to yourself to artificially inflate volume

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

NFT - Art Practice Test