When I first got into Web3, the lingo was one of the most surprising things I encountered. I always thought to myself, ‘Why don’t these people talk like normal people?’ I quickly realised that this was how things were within the space, and it was just something I needed to come to grips with.

This article is for people who are relatively new to the space and are confused by some of the slang used within the space. Here are 15 of the most commonly used slangs in web3 and their meanings:

1. HODL

Meaning: Originally a misspelt word for "hold," HODL has become an acronym for "Hold On for Dear Life."

Usage: Refers to the strategy of holding onto cryptocurrencies for a long period, regardless of market fluctuations.

Example: "Even during the market crash, I'm going to HODL my Bitcoin."

2. FOMO

Meaning: Fear Of Missing Out.

Usage: Describes the anxiety investors feel when they see others profiting from an investment they are not part of.

Example: "The price of Ethereum is skyrocketing; my FOMO is real."

3. DYOR

Meaning: Do Your Own Research.

Usage: A reminder to individuals to thoroughly research and understand an investment before committing.

Example: "This new token looks promising, but always DYOR before investing."

4. Whale

Meaning: An individual or entity that holds a large amount of cryptocurrency.

Usage: Whales have the potential to influence market prices due to their significant holdings.

Example: "A Bitcoin whale just moved 10,000 BTC to an exchange."

5. DeFi

Meaning: Decentralized Finance.

Usage: Refers to financial services built on blockchain technology that operates without traditional intermediaries like banks.

Example: "DeFi platforms like Uniswap and Aave are revolutionising the financial industry."

6. NFT

Meaning: Non-Fungible Token.

Usage: A unique digital asset that represents ownership of a specific item, such as art, music, or virtual real estate, stored on the blockchain.

Example: "I just bought a rare NFT from my favourite digital artist."

7. Airdrop

Meaning: The distribution of cryptocurrency tokens to a large number of wallet addresses, often for free.

Usage: Airdrops are usually used as a marketing strategy or to reward early adopters.

Example: "I received some free tokens from the latest airdrop campaign."

8. Gas Fees

Meaning: Transaction fees paid to miners to process transactions on a blockchain network, particularly Ethereum.

Usage: High gas fees can deter users from making small transactions on the network.

Example: "I had to pay high gas fees to mint my new NFT."

9. Rug Pull

Meaning: A type of scam where developers abandon a project and run away with investors' funds.

Usage: Rug pulls are common in the DeFi space and can result in significant financial losses.

Example: "The project turned out to be a rug pull, and the developers vanished with all the funds."

10. Yield Farming

Meaning: The practice of staking or lending cryptocurrencies to earn high returns or rewards in the form of additional cryptocurrency.

Usage: Yield farming is a popular way to earn passive income in the DeFi ecosystem.

Example: "I'm yield farming on a DeFi platform to maximise my returns."

11. Smart Contract

Meaning: Self-executing contracts with the terms of the agreement directly written into code.

Usage: Smart contracts automatically enforce and execute the terms of an agreement on the blockchain.

Example: "We used a smart contract to automate the distribution of our project's tokens."

12. DAO

Meaning: Decentralized Autonomous Organization.

Usage: An organisation governed by smart contracts and consensus mechanisms without a central authority.

Example: "I'm a member of a DAO that funds innovative blockchain projects."

13. Shilling

Meaning: Promoting a cryptocurrency or project, often in a biased or exaggerated manner, to generate hype and drive up its price.

Usage: Shilling can sometimes be deceptive and is often viewed negatively in the community.

Example: "He's been shilling that new token all over social media."

14. FUD

Meaning: Fear, Uncertainty, and Doubt.

Usage: Negative information spread about a cryptocurrency to create panic and drive down its price.

Example: "Ignore the FUD; the project's fundamentals are still strong."

15. Moon

Meaning: A term used to describe a significant upward price movement of a cryptocurrency.

Usage: When a cryptocurrency is said to be "mooning," it means its price is rapidly increasing.

Example: "Dogecoin is mooning after Elon Musk's tweet."

Conclusion

The Web3 space is rich with its own culture and terminology. Understanding this slang not only helps in communicating effectively within the community but also in grasping the nuances of this rapidly evolving ecosystem. Whether you're a seasoned crypto enthusiast or a newcomer, familiarising yourself with these terms can enhance your experience and knowledge in the world of decentralised finance and blockchain technology.