As a writer, one of the most exciting things in life has got to be adding words and definitions to a language.
With crypto we are not only adding new technologies, but new words, and vocabulary. We are reshaping our language as we reshape our world, and we have tried to gather the most crypto centric terms surrounding the IDO that we can. What is an IDO? An Initial DEX Offering, um, well, what the heck does DEX mean? DEX is short for decentralized exchange. Ten new vocabulary words is a lot for a lesson, and we are going to do way more than that in this A — Z essential crypto list of terms.
Let’s go!
1st layer / base layer / layer one
The main network on which any cryptocurrency runs, such as the Bitcoin network
2nd layer / layer two
A framework or protocol built on top of a layer one blockchain. The purpose of the second layer is typically to solve scaling issues or transaction speeds or fees. Usually good for smaller transactions
Allocation
The portion or percentage of an asset assigned to an individual
Binance Smartchain / BSC
A second layer blockchain solution to run smart contract based applications, specifically in a DEX environment
Bitcoin
A digital currency operating independently of a central bank with records of transactions maintained and new units of currency generated by computing the solutions to mathematical problems by miners
Blockchain
A network of several computers that are linked in a peer-to-peer network that is for recording the transactions of crypto assets
Bollinger Bands
A set of trendlines in technical analysis that mark a set standard deviation away from the moving average, typically 1 standard deviation away, however it can be customized. Bollinger bands were invented by famous technical analyst John Bollinger
Burn
The act of removing a coin from circulation. Coins sent to a burn wallet or eater address are unusable and removed from the circulating supply
Candlestick
An indicator on a price chart, originally to measure Japan’s rice trading, and now commonly used in analyzing crypto charts
Centralized
Any activity or organization controlled by a single authority or managed in one location
Circulating supply
The approximate number of coins that are circulating in the market and are in the hands of the general public. The total supply could include the total coins in existence, even those not yet in circulation and less any coins that have been burned.
Token contract address
The address for the location of the actual token contract that managed the logic for the tokens, not to be confused with your wallet address.
Cryptocurrency
A decentralized system using cryptography to maintain transaction records for digital currency, replacing the need for any centralized authority, and providing an outlet for wealth that is beyond confiscation and cannot be restricted by a central authority
Decentralized
In blockchain, network control is distributed across multiple nodes rather than given to any central authority. Decentralization allows for peer to peer transactions without the need for trust as all records entered are immutable and verified by a public consensus algorithm.
DeFi
Decentralized finance
Traditional financial products such as lending services, insurance, savings accounts, yield farming, transferred to decentralized exchanges allowing users to act as the bank, reaping the rewards previously reserved for those in the central finance industry, a historically gate kept industry keeping control and wealth in the hands of a few. Distributed access to financial products for all
Degen
Short for degenerate, and referring to a trader who trades without doing due diligence
DEX
Decentralized exchange
A peer-to-peer marketplace on the blockchain allowing traders to interact directly with each other instead of using a centralized intermediary, eliminating the need for trust
Dildo
Slang term for a large candle on the trading chart, can be red or green
Doxxed
When the team drops their identification documents online to prove their identity
Dump
The second half of the term pump and dump, the downside of the price of an asset after it has gone up or “pumped”
DYOR
Do your own research
In crypto DYOR refers to conducting your due diligence on a prospective project you may invest in
Exchange
An act of giving one thing and receiving another thing of equal value in return — in the case of crypto it is the platform where users can exchange one cryptocurrency for another on a CEX this is spot trading, and on a DEX it is referred to as swapping
FA fundamental analysis
A method for determining the value of an asset based on factors that could influence the price
Farming
The practice of staking or lending crypto assets to generate returns or rewards, usually in the form of that crypto or another one
FCFS
First come first serve
Transactions automatically queued in the order in which they come in
Flash crash
An instance in digital markets when a security or asset is withdrawn rapidly and the price declines and then quickly recovers. Could be in a matter of seconds or minutes
Flash loan attack
A malicious protocol used to attack DeFi projects and exploit them
Flippening
The theory that Ethereum’s market cap may one day surpass that of Bitcoin
Gas fees
The fuel needed to perform transactions on the Ethereum network
Governance
Refers to the on-chain system for managing and implementing changes to crypto blockchains. Rules are encoded into the smart contract to institute changes. Developers propose code updates and each node has a vote to accept or reject the proposal
Guaranteed allocation
When participating in an IDO this is the number of tokens a user will receive for sure, if they sake X tokens for the sale
Hardware wallet
a device that stores the private keys for a cryptocurrency wallet. This hardware device can keep crypto safe and secure while offline
ICO
Initial Coin Offering
A fundraising mechanism used by startups to sell a new cryptocurrency directly to the public prior to the coins being in circulation elsewhere. Has generally been replaced with the IEO or IDO
IDO
Initial DEX Offering
A permission less and decentralized crowdfunding process.
IEO
Initial Exchange Offering
A token sale to replace the original ICO, hosted on a CEX where the CEX acts as a supervisor and conducts some due diligence to prevent fundraisers from running off with newly raised funds
ILO
Initial Liquidity Offering
A fundraising mechanism that skips the ICO phase and jumps straight to raising funds on a DEX
Launchpad
The IDO launchpad acts as a community funded VC. A launchpad is a website that allows project founders to list their projects for investors who are interested in supporting the start up. These community members then act as a pool, combining their funds with other investors, in essence becoming a community VC. The price of the crypto asset is sold at a discount during IDO prior to the public fundraising round.
Leverage
The use of borrowed funds to increase ones position in a trade
Liquidity farming, yield farming, yield, or liquidity harvesting
Fees or interest earned on crypto that users have loaned out via various DeFi platforms
Liquidity pool
A mechanism to hold the assets of users inside the smart contract of a DEX so that other users may buy, sell and trade
Liquidity providing
Crypto assets placed in a shared pool by users whose assets will facilitate the trading of the asset pairs
Lock period
The time span in which investors are not able to sell their tokens, this typically follows a token sale, and is designed to protect the liquidity of new projects and prevent dumps
Long position
Going long is another way to say buying a crypto that is expected to increase in price at a later date
Mainnet
An independent blockchain, also known as a 1st layer blockchain. It is a live blockchain that has its own cryptocurrencies or tokens being used, whereas a testnet requires a base layer blockchain from which to operate such as Ethereum
Market cap
Total value of all coins that have been mined or minted, simply multiply the number of coins in circulation by the current market price of one coin
Metamask
A software crypto wallet originally for the Ethereum network but now accepts multiple chains for storing many types of cryptos
Metaverse
A custom digital universe offering real aspects of the real world such as working economies, real time interactions, while also offering unique experiences only possible in the digital realms
Miner
The node tasked with verifying or “solving” the unconfirmed block on a blockchain by verifying the hashes
Mint
The act of authenticating data on the blockchain, and then storing that data in a proof-of-stake method
Moonboy
A small investor (under $100) who invested in a shitcoin who expects a lambo next week as a return on his investment
Moving averages
A technical indicator that shows the average price of x number of recent candles, can be done on the hourly, daily, monthly or other type of chart for tracking and predicting price movements. Moving averages should be used in conjunction with other indicators when making predictions
NFT
Non-fungible token
A cryptocurrency that has a unique identifier that can’t be copied, or substituted, unique fungible tokens which can be copies of the same thing and can replace each other, one NFT cannot replace another, each is unique
Node
One of the components needed to make cryptocurrencies like BTC and Doge work, it is a computer connected to a crypto network that executes functions like creating, sending, or receiving info
Non custodial
You have SOLE CONTROL over your private keys, that means you provide the security, you keep them safe, and you have full control over your coins, unlike an exchange which acts as custodian to your crypto. you may have heard the phrase “not your keys, not your coins” when referring to storing crypto on a CEX
Private sale
The first stage of fundraising for a crypto project, this is the one stage that is still often conducted like an ICO but is generally reserved for the founders private network where they have established some trust, the private round precedes the main fundraising rounds for IEO, ILO, or IDO
Public round
The crypto industry equivalent to an initial public offering or IPO
Pump
The front half of a pump and dump scheme where a group or individual inflates the price to make a profit only to dump their tokens on the market
Rekt
Internet slang for the word “wrecked” when applied to crypto means an individual who suffered a large financial blow or loss
Rug pull
In crypto a developer runs off with newly raised project funds and disappears, they have pulled the rug out from underneath unsuspecting investors
Satoshi Nakamoto
The pseudonym of the person or a group of person who wrote the original Bitcoin whitepaper
Seed phrase
A series of words generated by your crypto wallet that gives you access like a key to your funds, NEVER SHARE YOUR SEED PHRASE WITH ANYONE
Seed round
A financing round to start a business initially, often from the founders personal finances, or from friends, family, angel investors or VCs who offer incubation services
Shitcoin
A cryptocurrency with little to no value or utility
Short
Selling a crypto in order to profit from a decreasing price
Smart contract
A program on a blockchain that runs when the predetermined conditions are met
Soft wallet
A software wallet designed to hold crypto keys, unlike a hardware wallet a software wallet is always connected to the internet so arguably more vulnerable than a hardware wallet
Spot trading
A never ending process of buying and selling of crypto assets for a spot price that is settled immediately
Staking
The process in proof-of-stake blockchains that allows a user to commit their crypto assets to support the blockchain network to confirm the transactions that form the next block
Staking rewards
The rewards paid to users for committing their crypto assets to perform the consensus mechanism needed in proof-of-stake
Swap
The act of trading cryptos without leaving your wallet, can be done on either a DEX or CEX
TA technical analysis
The act of using real world data and charts to predict the price movement of a particular asset or asset class
Testnet
An alternative blockchain used for developers to test functionality before the deployment of the mainnet
TGE
Token Generation Event
The event that takes places when a new blockchain project mints their tokens to launch the coins
Total supply
The total count of coins in existence right now, less any tokens that have been burned or destroyed and not including any coins to be minted or mined in the future
Trading
Buying and selling cryptos on an exchange
Transparency
Open source software that can be reviewed and audited by anyone
Trustless
Removing the need to rely on a third party such as a bank, person, or any intermediary that could come between you and your transactions on the blockchain
Trust wallet
A multi-coin wallet that can be used to store ERC20, BEP2, ERC721, and other tokens
Tx id
Transaction ID
The string of letters and numbers that identifies one specific transaction on a blockchain
Utility
Digital tokens built on a blockchain and what can be done with them, or their use cases
VC
Venture Capitalist
An investor who uses private equity to invest in start up crypto projects
Vesting Period
A process to lock and then release tokens at a certain time, can be done manually or hard coded into the smart contract
Wallet
A hardware or software unit for storing the private keys of your crypto, they may be located on an exchange and in their custody, or offline and in your custody
Whale
An individual or entity that holds a large amount of a specific crypto
Whitelist
A list of allowed individuals, or institutions or crypto addresses that are identified and have permission to be there
Whitepaper
A document released by crypto projects with the details of how the project works, the problem it’s solving, and an introduction of the team and roadmap
We are open for suggestions, if you have any more definitions that we should add in this list, plz tell us in the comment section below.
DPAD is building a decentralized protocol for crypto launchpad where anyone can raise funds for their business idea. The whole process on DPAD is decentralized and user controlled. DPAD supports the decentralization of crypto, true ownership of crypto assets. Learn more about DPAD on the following links:
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