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NFTs and Digital Assets Flashcards

7 cards from real Cryptocurrency practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is the 'floor price' of an NFT collection?

    Answer: The lowest listed price for any NFT currently available in that collection

    Floor price represents the cheapest NFT available in a collection on a marketplace, serving as the baseline entry point for buyers and a key market health indicator.

  2. What role does IPFS (InterPlanetary File System) play in NFT infrastructure?

    Answer: It provides decentralized storage for NFT media files referenced by on-chain metadata

    Because storing large media files directly on-chain is cost-prohibitive, NFT metadata typically points to IPFS — a decentralized content-addressed storage network — to host the actual images or files.

  3. What is 'wash trading' in NFT markets?

    Answer: A seller buying their own NFTs repeatedly to artificially inflate volume and price

    Wash trading involves transacting with oneself or colluding parties to simulate trading activity, misleading buyers about an NFT's demand and price history.

  4. What is a 'generative NFT' collection?

    Answer: NFTs programmatically assembled from trait layers using algorithms, producing thousands of unique combinations

    Generative NFT collections — like CryptoPunks and Bored Apes — use code to randomly combine visual traits (background, eyes, clothing) to produce thousands of distinct but thematically related tokens.

  5. What is 'token gating'?

    Answer: Restricting access to content, events, or communities based on NFT or token ownership

    Token gating uses ownership of a specific NFT or token as an access key, granting holders exclusive entry to communities, content, events, or features.

  6. Which blockchain hosts the majority of NFT trading volume by historical standards?

    Answer: Ethereum

    Ethereum pioneered NFT standards (ERC-721, ERC-1155) and has historically dominated NFT trading volume, hosting major marketplaces and blue-chip collections.

  7. What is a 'soul-bound token' (SBT)?

    Answer: A non-transferable token permanently tied to a wallet representing credentials or identity

    Proposed by Vitalik Buterin, SBTs are non-transferable tokens representing achievements, credentials, or affiliations — they cannot be sold or moved, making them suitable for identity and reputation systems.