Crypto Glossary

An Initial Coin Offering (ICO) is a fundraising method in which a new cryptocurrency project sells its tokens to the public, typically in exchange for well-established cryptocurrencies like Bitcoin or Ethereum. This approach allows the project to raise capital for development while offering early investors the opportunity to acquire tokens before the cryptocurrency becomes widely available. ICOs have become a popular way for blockchain-based projects to secure funding and build a community around their initiative.

Impermanent Loss refers to the temporary loss suffered by liquidity providers in automated market-making (AMM) platforms when the prices of tokens within a liquidity pool diverge. This occurs because the value of tokens in the pool may change relative to one another, resulting in a situation where liquidity providers may end up with fewer assets worth less than if they had simply held their tokens outside the pool. Although the loss is not permanent and can be mitigated if prices return to the original ratio, it highlights the risks of providing liquidity in decentralized finance (DeFi) platforms.

HODL is a cryptocurrency investment strategy focused on holding assets for the long term, regardless of short-term market fluctuations or price changes. It emphasizes patience and persistence, encouraging investors to resist selling during periods of volatility.

Hardware Wallet Definition: A hardware wallet is a physical device crafted to securely store cryptocurrencies and private keys offline. Renowned for their advanced security features, hardware wallets are widely regarded as the safest option for safeguarding digital assets against online threats and unauthorized access.

Hard Cap Definition: The hard cap represents the maximum amount of funds that a token sale or project can raise during its funding campaign. It signifies the upper funding limit, beyond which no additional contributions are accepted.

Gas Definition: A unit that quantifies the computational resources needed for transactions and operations on blockchain networks, directly influencing transaction fees.

GameFi is the fusion of gaming and decentralized finance (DeFi), allowing players to earn, trade, and own digital assets within gaming ecosystems.

Flippening Definition: A hypothetical event where a cryptocurrency overtakes Bitcoin in market capitalization, marking a shift in market dominance.

First In, First Out (FIFO) Definition: An accounting method that values sold assets by using the cost of the oldest inventory first. It contrasts with Last In, First Out (LIFO), which uses the most recent inventory costs instead.

Fully Diluted Value (FDV) refers to the total theoretical market capitalization of a cryptocurrency project, calculated by assuming all tokens in existence—both circulating and non-circulating—are fully issued and available in the market.