If you’ve dipped your toes into the cryptocurrency world, you’ve undoubtedly heard some crypto terms being thrown around. From “hodling” to “getting rekt”, it can be tough to keep up with all the lingo. Here, we break down a new trend in NFTs – “sweeping the floor”.
What Is Floor Sweeping In NFTs?
Floor sweeping is a term used by crypto people that describes when buyers intentionally raise the floor prices of a non-fungible token (NFT) collection. It gets its name from the act of “sweeping up” or buying all the NFTs in a collection to collectively increase the floor price.
In simple terms, “floor price” refers to the lowest-valued asset in an NFT collection. For example, if you have a collection of three NFTs priced at 1, 2, and 3 ETH respectively, the floor price will be 1 ETH. However, if that same NFT gets resold on the secondary market for 4 ETH, then the floor price will increase to the asset with the next lowest price in the collection (i.e. 2 ETH).
Floor sweeping raises the floor price of an NFT collection, which in turn increases the collection’s overall value.
What Causes Floor Sweeping In NFTs?
The act of “sweeping the floor” can be performed by a single person or an organized community of NFT enthusiasts. It is often initiated in chat rooms, where users might post “SWEEP THE FLOOR” to convince as many buyers as possible to get involved.
Floor sweeping often happens when users in online communities collectively engage with the same NFT collection and continuously buy the lowest-priced NFTs. If more buyers take part in this or make bulk purchases, the floor will be continuously swept – making a significant impact on the floor prices.
This concept is related to the term “the floor is lava”, where the floor price continuously goes up because the collection is seen as a “hot” commodity. However, the main difference between the two is that floor sweeping is more intentional.
Floor sweeping sometimes has a negative connotation as it can be compared to scalpers sweeping up concert tickets to sell at a higher price. Sometimes, associations with floor sweepers (which are usually automated sniper bots) can tarnish the reputation of a legit project, turning it into a high-value NFT project to a suspicious pump-and-dump scam.
Sweeping the floor is not necessarily a bad thing – it can put underrated but cool projects on the map. But NFT holders should be careful not to get carried away with sweeping the floor. In any case, we’ve only just scratched the surface on how to best go about trading digital tokens.
If you’d like to start your own NFT collection, Tokenfy can help. Check out our site today and learn how our NFT launchpad can help you kickstart your own NFT project today!