Learn-to-Earn: 15 Key “F” Concepts You Must Understand in the Crypto Space

In the previous editions of this series, some core concepts under A, B, C, D and E have been critically examined. This edition focuses on the F concepts and it adds to the long-term goal of DPAD Finance towards educating the new entrants into the space as well as refreshing the understanding of the ancestors in the crypto industry. The 15 basic concepts are explained in essence:

Fair Launch

In DeFi, a Fair launch is regarded as the most reliable way of promoting decentralization and active participation. It refers to the transparent and equitable initial distribution of tokens or coins in a crypto project.

Fan Token Offering (FTO)

An FTO refers to a period when several Fan Tokens are made available at a fixed price prior to their entrance into the marketplace. It is a public sale of blockchain project’s Fan tokens on Chiliz’s Socios platform. The Socios discloses all information relevant to the token released publicly before an FTO launch to enable users to make more informed investment decisions. The information may include the Fan token’s opening price, the start and end dates of the FTO, and the fully diluted market cap.

Fantom Virtual Machine

The FVM is a virtual machine capable of creating smart contracts in Ethereum’s Solidity programming language. It is built and designed by the Fantom network that uses a consensus mechanism known as Asynchronous Byzantine Fault Tolerant (aBFT). FVM also uses the Fantom Opera chain to connect with the Ethereum Virtual Machine (EVM).

Faucet

This is a web-based service (an App or a website) that distributes testnet or devnet coins as a reward for completing easy tasks. These coins usually come from individuals or organizations that are willing to give out their surplus coins for free. These free coins are referred to as faucets since they are small, just like small drops of water dripping from a leaky faucet. Some faucets may even release coins from the main blockchain protocol with real-world monetary value.

Fear of Missing Out (FOMO)

FOMO is a general financial term that refers to the feeling of irritation or regret for missing out on a particular investment opportunity that others may be enjoying. It is used to describe the tendency of DeFi investors to panic and start buying coins when they see that the price is rising since they wouldn’t want to miss out on the profit.

Fear, Uncertainty, and Doubt (FUD)

FUD is generally used by individuals who do not like a project or want to reduce the value of a digital asset. It shows that the overall market sentiment is fearful, doubtful, and uncertain, engulfed with high volatility. FUD is usually high when BTC devalues significantly during a short time frame bringing down the market values of other cryptos.

Fiat Currency

Fiat Currency refers to any money that is not backed by a physical commodity like gold or silver. Instead, it is backed by the government that issued it. As a government-regulated currency, it is generally recognized as a medium of exchange or a legal tender, a unit of account, and a store of value. Fiat currencies are known to be uniform, durable, divisible, and portable with a limited supply. Good examples are the U.S. dollar, euro, pound, and yen.

Fiat-Backed Stablecoin

These are stablecoins or digital assets pegged in a 1:1 ratio to the value of an underlying fiat currency. They are built to minimize the volatility associated with digital assets. Good examples are the USD coin and the USDT.

Finality Rate

The term finality refers to the blockchain status after a transaction has been confirmed. At that point, the transaction can no longer be reversed, altered, or canceled by any of the network participants. Whereas finality rate is the time taken to reach a finality state after a transaction has been executed. Depending on the blockchain as well as the context in which this term is applied, the Finality rate can be measured in either seconds or blocks.

Flow (Blockchain Platform)

Flow is a blockchain platform designed by Dapper labs to support consumer collectible ecosystems. It is meant for collectibles, games, and other related consumer applications. Dapper Labs is the company behind NFT collections like NBA Top Shot and CryptoKitties.

Forex (FX)

Forex is a term that represents foreign currency and exchange. It is used to define the entire foreign currency exchange market. A global and largely over-the-counter (OTC) market that determines foreign currency exchange rates. It facilitates all aspects of buying, exchanging, and selling currencies at spot or negotiated prices.

Fund of Funds (FOF)

FOF also known as a multi-manager investment is a pooled investment fund. It is an investment strategy in the form of pooled capital that invests in other funds to minimize risk by broadening the diversity of investment vehicles under its belt. FOF is made up of investment trusts, mutual funds, private equities, and hedge funds.

Fundamental Analysis (FA)

FA is a method used in analyzing the inherent value of an asset to ascertain whether the asset is overvalued or undervalued. It considers the different external and internal factors including competitors, reputation, social presence, team, marketing, advisors, tokenomics, distribution, and market capitalization.

Fungibility

This is a term given to assets when their units are interchangeable with each other and becomes indistinguishable. Each of the asset units shares an equal validity and market value. For instance, one U.S dollar is always equivalent to any other U.S dollar. A pound of pure gold would remain the same as another no matter the form. These asset classes can be referred to as Fungible. Fungibility increases the usefulness of an asset either as a currency or a payment method.

Futures

Futures are referred to as derivative contracts, an agreement between two parties to either buy or sell an asset like digital currency on a predetermined date, at a predetermined price. Futures contract trades on exchanges, they serve as an income source, speculation, hedging, etc. It has varieties of applications, for instance, bitcoin futures represents future agreements to trade BTC. It is basically a form of bet on the future price movement of an asset.

Hope you found this piece helpful? If yes then stay tuned for more concepts. Remember, it’s better, easier, and simpler to read and understand from DPAD Finance Academy.