Hodl. To the moon. ICO. These are just some of the cryptocurrency terms that have not yet made it to the dictionary. Many of them remain virtually unknown in the mainstream world.
But knowing the reticence of the early crypto subculture with centralized and mainstream authorities, it could take a while before this trademark jargon we often see in cryptocurrency and blockchain contents could become ordinary terms that even non-crypto people know.
Nevertheless, we compile in this article some of the most popular cryptocurrency terms that everyone should be familiar with for them to decipher forum conversations with ease. Some of them also have an interesting history on how they came to be.
The pseudonym Satoshi Nakamoto pops in many crypto conversations simply because he — or she, or they, or it — created Bitcoin. The world has had its guesses as to who the entity behind the pseudonym, but nothing has been proven yet.
Nevertheless, crypto greenhorns should not wonder anymore where satoshi, the smallest unit of Bitcoin, originated from. Many will encounter satoshi, or sats, especially when they are claiming free coins from crypto faucets.
Among the people that are associated with our mystery man is Craig Wright, a computer scientist who claims, albeit aggressively, that he is Satoshi Nakamoto. Another is Dorian Nakamoto, a retired physicist who was quoted to say he was no longer involved in Bitcoin.
No, we didn’t misspell this. The person who popularized this term did.
In 2013, a Bitcointalk user named GameKyuubi posted in the forum with the title I AM HODLING. In the post, the user said that he’s not selling his BTC despite the price crash at that time because he’s a “bad trader”.
The user admitted to be under the influence of alcohol while writing his post. He even joked that the readers should sue him, but only if it is payable in BTC.
GameKyuubi said toward the end of his post:
You only sell in a bear market if you are a good day trader or an illusioned noob. The people in between hold. In a zero-sum game such as this, traders can only take your money if you sell.
Readers accepted the term and have even used it in daily conversations. Today, hodling means to keep one’s crypto asset despite the market having a steep downhill market movement. Given that the crypto market is volatile, many would panic and sell their assets to minimize losses.
Over the years, Hodl has become a backronym which means “Hold On for Dear Life”.
FOMO and JOMO
These are popular terms especially during the early crypto years until the 2017 bull run.
FOMO stands for “fear of missing out”, which stands for the emotion and sentiment that cryptocurrency investors have when there is a new project that has great investment potential.
On the other hand, JOMO means “joy of missing out”. This refers to the joy and sense of relief that cryptocurrency investors feel when they did not invest in a particular cryptocurrency project that turns out to be a scam later on.
To the moon
Many people in love would think of this phrase as a description of a person’s affection toward another. We hate to break it to you, but this is not a shortcut of the phrase “to the moon and back”. In crypto, this means something entirely different.
When someone says a cryptocurrency is ‘mooning’, it means that the asset is experiencing a price spike. When a person says something like “Bitcoin to the moon!” it means that he or she is hoping that the said cryptocurrency will skyrocket in price soon.
People also ask, “When moon?” when they want to know the time the cryptocurrency’s price is expected to spike.
This is one of the old crypto slangs that remain commonly in use today. FUD stands for “fear, uncertainty, and doubt”. This summarizes the mixed emotions of cryptocurrency investors whenever they see their crypto is not performing well.
Lambo simply refers to the popular luxury sports car brand Lamborghini. This is popular among cryptocurrency circles because dealers of the said car brand have accepted Bitcoin as payment since 2017.
Today, lambo is now a symbol of crypto millionaires’ prominence and affluence. When people say “When Lambo?” they ask when a specific person will become a millionaire because of his crypto investments.
ICO, IEO, and STO
These three acronyms are some of the most popular cryptocurrency crowdfunding types today. The oldest is ICO, which stands for initial coin offering. Basically, a new crypto project announces itself to the public and facilitates a crowdfunding initiative to develop its platform.
Crypto investors would scramble to buy the project’s coins, which are virtually worth zero at that time, with the hopes that it will shoot up in price once the crowdsale has been completed and the coin has been listed on cryptocurrency exchanges.
ICO was invented by J.R. Willett, an early Bitcoin believer who used the said crowdfunding method for the Mastercoin project, which has renamed itself to Omni.
Check out this video to see how Willett introduced ICO at a Bitcoin forum in 2013.
Unfortunately, ICO has been highly associated with scams. That is why many cryptocurrency projects use IEO and STO.
IEO stands for an initial exchange offering. Basically, a cryptocurrency exchange facilitates the crowd sale and gets a commission. In exchange, the project’s coin listing gets done instantly on the exchange after the sale.
On the other hand, STO is the acronym for security token offering, wherein a specific firm sells securities to interested buyers, only that this time these securities are tokenized.
Contrary to our initial impression, this is not an adjective of parachute. Nobody’s in the paratroop regiment here.
Airdrop simply means the widespread giveaway of coins or tokens for the sake of promotion or mass adoption. Many crypto enthusiasts look out for airdrops on various platforms.
Another way to get free coins is through crypto faucets. These are giveaway sites that hand out minuscule amounts of crypto to interested users. These were especially popular in the early days of crypto when there were not many people who had access to cryptocurrencies.
Crypto faucets still exist today. However, we caution all faucet claimants to check the legitimacy of the website since there are some that do not really give out free coins and are just using the platform as a means to advertise a particular product or service.
If you are a member of cryptocurrency communities, you may encounter this term very often. Pump-and-dump refers to a scheme wherein some people would pump the price of a specific asset by overbuying and overhyping it, and dump their coins once it has reached a higher price.
This practice was prevalent before when the crypto community was composed of people who thought they could get rich overnight through cryptocurrencies. Now, it seems that some — not all — crypto investors have matured.
Hot storage and cold storage
Just so you know, we’re not really talking about temperature here. These are just the types of cryptocurrency storage. Hot storage refers to cryptocurrency wallets that are connected to the internet. They can be web browser-based or come in the form of mobile applications.
Cold storage refers to cryptocurrency wallets that are not connected to the internet. They can be offline PCs, flash drives, or even paper wallets.
Many cryptocurrency users say that cold storage is more secure than hot storage since hackers have virtually no means of stealing your funds.
Shilling is a term that is not exclusive to the crypto community. It simply means an activity wherein a person talks about a particular project more than he means to just to promote it to the public.
These people are usually influential personalities in a particular sector who may have a particular motive for doing so.