Welcome to the world of NFT, I will be your translator today

Maybe by now you are tired of hearing about NFTs.

For many stock traders I know, the immediate answer is, why should I invest money in something I can right-click and save?

It’s a good question. It’s also the one I talked about earlier with the notion of “digital country clubs”. Beyond that, I compare it to GameStop (GME) and AMC Entertainment (AMC). Why have these soared? Greed certainly played a part, but people wanted to feel like they were part of something bigger than themselves. The crafts, these stocks, provided a sense of community, belonging and pride. And, yes, greed played a role. This is almost always the case.

Once we get past that question, the next one is always “I don’t understand”.

So it’s a statement, not a question, but it’s still an objection. It’s not only, I don’t understand why (which just repeats the immediate answer mentioned above), but I don’t understand how.

You see, for most of us, actions are our primary language. Learning to trade NFTs or simply understanding what we mean means learning a second language. The longer you’ve been in the stock market, the harder it can be, so I’m here to help you out with a little primer today. Let’s call it a translation from the NFT trading language to the stock market equivalent. That way, if you’re venturing down the NFT investing path, you might not be so lost right off the bat. Again, these are my interpretations and they are not exhaustive, but here are 10 “translations” to help you better understand the world of NFT trading.

  1. Gas = Commissions and fees. The fees you pay to buy or sell, especially on the Ethereum blockchain, are akin to calling a broker in the 80s or 90s and losing $50 to buy 100 shares of Microsoft (MSFT).
  2. Parachuting = Single special dividend. This is when an NFT draft allows you to create an NFT or “magically” deposit a new NFT into your wallet. It’s like receiving a one-time $5.00 dividend from Deere (DE). There is often a run in the NFT until it becomes ex-drop (ex-dividend) and then it will drop.
  3. mint = IPO. A mint is when a project creates and distributes new NFTs similar to a public offering of shares for the first time.
  4. Ground = Current minimum “demand”. The floor is the lowest price an NFT can be bought immediately.
  5. Sweep the Floor (Project Owners) = Redemption of shares. When a project buys all of its NFTs at the current floor price. The term sweep refers to buying all listed NFTs at the current floor price, which can range from one to over 100.
  6. Sweep the floor (buyers) = FOMO. When buyers sweep the floor, it’s usually because of the momentum or timeliness of the project. This is also similar to the option stream.
  7. To burn = Fusion. It’s a phrase that can mean several different things, but here I’m using it with the idea of ​​burning (destroying) two NFTs to create and receive a new NFT. This is similar to merging two companies to form a new company. Some aspects of both companies will likely remain, but some will be removed.
  8. Reproduction = Fallout. Some NFT projects will allow you to “duplicate” two or more NFTs to create a new one. You still keep the original, but now you have an additional NFT that trades on its own. It’s like getting shares of Chipotle Mexican Grill (CMG) from McDonald’s (MCD) many years ago.
  9. Play to win = Dividend. A play-to-earn NFT game will reward you with in-game coins, cryptocurrency, or NFTs, all of which have the potential to be exchanged/sold for fiat. The game does nothing more than return some of its profits to players in the same way that companies return money to investors through dividends. It’s not exactly the same, as players have to work for it, but it’s the closest comparison.
  10. monkey in = All in. Aping in is similar to buying aggressively or buying in size. It reminds me of someone who “beats the table”, declares a strong buy or says they are going all-in on a stock.

If you hear terms you don’t understand, send me a message and I’ll do my thing to translate it into stock talk for you!

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