GM, GN, WAGMI, PFP, FOMO…. HODL; If you’re in the NFT space, chances are you’ve heard these terms. If you’re new to the NFT space, you may be thinking; WTF does all of this mean? Don’t worry. We’re here to help.
There are a lot of acronyms and lingo when it comes to being a non-fungible transactor. When you first dive into this world, it may look like a bunch of nonsense, but if you read between the lines, you will find that most of the insights in the space lie behind these fantastical phrases. If you’re not privy, you may get left in the dust, and if you’re not following the trends, you’re NGMI.
So let’s start with the basics, acronyms:
It’s only fitting we start here. HODL, an intentional misspelling of hold, is an acronym for hold on for dear life. The term HODL (or hodl) has been around for a while, first appearing in crypto forums in 2013, and serves as a reminder to traders to focus on the long term value of an asset and not the day-to-day changes in the market.
Ah yes, the one, the only, the NFT. An NFT, or Non-fungible Token, is a piece of data stored on a blockchain. Many different assets can represent these data points, though the primary current forms are audio, video, images, & gifs. Non-Fungible simply means that it cannot be replicated or duplicated; it is a unique asset in and of itself. Living on the blockchain, these unique assets have a multitude of use cases and utilities, but that’s a story for another time.
A JPEG, or JPG, very simply put, is an image. Standing for Joint Photographic Experts Group, a JPEG is the compression system that your camera uses to make images smaller for storage. While JPEGs are real and have been used for a long time, the way the term is used in the NFT space is more of a joke. “You paid $4,000 for a jpeg? Nice,” is along the lines of something you may hear.
Like all of our DeFi articles on this site, this is NFA, AKA, Not Financial Advice. If you’re giving someone your thoughts on a project or something they would need to invest in, it’s probably a smart move to say “NFA.” This statement makes you not liable for any potentially lousy advice you may give. You know, like when you told your buddy that CryptoApeMoonToadDoodles was going to take off?
Ride that dip baby (NFA). DCA or Dollar Cost Averaging is an investment strategy where investors spread their purchases over days, weeks, months, or more. DCA’ing will allow the investor to curate their portfolio in a less volatile way than, say, dumping all of their fiats into one purchase, and now they’re stuck at whatever that price point is. This strategy allows you to bring your average cost down, or in some cases, up if you’re buying more at a premium than your original purchase: either way, DCA.
A DAO or a Decentralized Autonomous Organization is a group of individuals under one brand but not governed by one single person or entity. DAO’s are highly unique as they all run on the say of organization members. Instead of having a “board” of individuals make decisions, all rules and regulations of the DAO are coded on the blockchain via smart contracts that cannot be manipulated without prior knowledge and vote from DAO members. Basically, if you want actual ownership and say of an organization, start looking into DAO’s.
Very simply put, a DApp is a Decentralized Application (App). These programs mainly run on blockchain and provide transparent information and services rather than one entity controlling all information and data.
What your weird middle-aged uncle won’t stop spreading at family gatherings. Fear, Uncertainty, Doubt. FUD; this is essentially any bad news or rumors that are spread about a project, causing panic among investors or soon-to-be investors. Don’t trade using your emotions, analyze and explore any spreading FUD, and always do your own research, which brings us to our following and potentially most important acronym.
Do Your Own Research! When beginning your journey into the NFT or crypto space, you must do this. With new projects popping up every day, promises of “the next BAYC (Bored Ape Yacht Club)” will always be in the air. It is essential during these times to get skeptical, put on your research cap, and get to searching. Doing your own research will be a key to earning money in this space and making smart investments.
Similarly to DYOR, if you want to be an intelligent investor, you must do your DD or Due Diligence. Doing your DD is a process of intensely analyzing an investment before you make it to minimize any negative attributes that this deal may have.
While this isn’t exclusive to DeFi, IRL stands for In Real Life. Meaning that place where you have to do real-world stuff like walk the dog and talk to your in-laws.
Play to Earn are the mechanics typically utilized in videogames where you play to earn an in-game currency. On this same line of thought, in NFT specific games, many new P2E opportunities are coming out that will allow you to make real income in the form of crypto. For an example of a P2E game, check out this article (hyperlink Troverse piece)**
This is one that you must be familiar with, as so many of the NFT projects that you know and love are initially centered around this concept. The Profile Picture or PFP is your standard, mainly static avatar that many use to represent themselves. These PFP’s show what community you’re a part of and allow you to show off your purchase, mood, or whatever else you want to portray.
These are the terminologies used by the masses of the NFT space to portray the sentiment of a project or decision. WAGMI is We All Gonna Make It; this saying emphasizes the community aspect of DeFi. WAGMI provides a sense of “we’re all in this together” type attitude, which can allow for a very positive effect on the community involved with the project.
Similar to WAGMI is GMI, Gonna Make It. This is usually said toward projects or moves made by an individual that others see as a good, fruitful move. Alternatively to WAGMI, we have NGMI. Can you guess it? Not Gonna Make It; if you see NGMI plastered all over a project or decision, it’s because the sentiment of the NFT community sees that as a bad move. So keep your eyes peeled, and one day, you’re GMI.
If You Know You Know. This is mainly said by individuals who have inside knowledge on a project or its happenings. For example, if you see IYKYK on a cryptic tweet, those saying this are calling out to others; if you know (what this means, then) you know (what’s going on).
Please watch out for this one, as many scam projects will use this tactic for rushing you into a purchase. FOMO is the Fear Of Missing Out. When you want to get in on something, and you’re rushing in without researching the project or team, then you have FOMO. As mentioned, pushing FOMO is sometimes a tactic of scammers trying to take advantage of the unaware and impulsive. So always keep your eye out and try not to FOMO (we know it’s hard, for more insight into rug pulls, check out this article). (hyperlink Rug Pull piece)**
The most commonplace sayings on Twitter may be GM/GN, which stands for “Good Morning” and “Good Night.” Innocently sweet, individuals in the NFT space usually say GM/GN just because it’s a nice thing to do. The community provided by the NFT space is undoubtedly kind and caring, and this is just one example of that simple kindness.
When you see MM, it is likely that people are referring to MetaMask, which is the top wallet among NFT traders on the Ethereum blockchain. MetaMask is a must when on many trading platforms.
Some are beginning to call it BS (IYKYK), but OS stands for OpenSea. OpenSea is an NFT trading platform that runs on the Ethereum Blockchain. Users can buy, sell and view NFT projects on this platform.
And these are just the basics. If you want to continue learning a new language of acronyms, then the NFT space is for you. So if you choose to continue this journey, always remember to; DYOR, never FOMO, and most importantly, remember that WAGMI.
For more insight into the language of the NFT world, check out this NFT Lingo guide! (I will be writing up this guide and will send it over to you asap!)**