NFT Marketplaces and Trading Mechanics 3

Question 1

What is 'sweeping the floor' in NFT trading?

Accepted Answer

Bulk-buying the cheapest listings in a collection

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

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

Answer

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.

Question 4

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

Accepted Answer

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

Answer

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

Question 5

What is 'bid sniping' in timed NFT auctions?

Accepted Answer

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

Answer

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

NFT - Art Practice Test