The Nifty Dictionary: Diamond Hands

DEFINITION

Diamond hands is a term for someone who plans to hold onto an NFT long-term, with no concern about market conditions in the short term. The opposite of paper hands.

EXAMPLE

"I don't mind that the floor price for this collection has gone down recently. I've got diamond hands, baby! My NFT will be worth a lot one day."

"Those flippers are going to regret paper handing that NFT! The diamond hands know what's coming later. 👀"

CONTEXT

A person is said to have diamond hands if they are a long-term NFT holder. Diamond hands are generally held in high regard in the NFT community, as their faith in artists helps create long-term demand for their creations.

Diamond hands collectors may be motivated by love or money: they may believe that the value of their NFT will increase significantly over the long-term, enabling them to sell for a high return in the future; or they may simply love the NFT so much that they want to keep it forever. In either case, such collectors cannot be convinced to part with their NFTs in the near-term.

The opposite of diamond hands is paper hands.

The Nifty Dictionary: Paper Hands

DEFINITION

Paper hands is a derogatory term for someone who quickly sells an NFT, or sells in a panic when market prices drop. The opposite of diamond hands.

Consequently, to paper hand an NFT means to sell it for a small profit, a wash, or a loss.

CONTEXT

A person is said to have paper hands if they are a short-term NFT holder. The term has a negative connotation, as it implies that the holder does not have long-term faith in the NFT they bought, or faith in its creator. If they did, they would confidently hold on to the asset in the belief that its value will increase over time.

Flippers and speculators would be said to have paper hands, as their goal is to make a profit by reselling NFTs, not keeping them.

In contrast, buyers with diamond hands are those who are committed to holding their NFTs through good markets and bad. Diamond hands plan to either hold onto their NFTs forever, or to sell them for a very high value in the future (as opposed to the small profit or even the loss that paper hands might take by selling in the near-term).

The Nifty Dictionary: One of One (aka 1/1)

DEFINITION

A 1/1, 1 of 1, or one of one, is an NFT that has been issued as a single, unique edition. One of ones are seen as more scarce and therefore more valuable, because only one person can own them at a time.

CONTEXT

When an NFT is minted, the creator can choose to issue any number of editions of their work. If the creator elects to make multiple editions, these editions will all appear exactly the same, differing only in their edition number and/or token ID.

Issuing multiple editions of an NFT allows more people to collect that nifty. However, the law of supply and demand dictates that the more editions that exist of an NFT, the less valuable each edition becomes.

1/1s therefore have more value than multi-edition NFTs. (By this same logic, 1/1s are generally more valuable than open editions, since open editions are designed to create many editions of that item.)

On the Ethereum network, 1/1s are typically ERC-721 tokens, since the alternative ERC-1155 token standard was created in order to make minting multiple editions of an NFT cheaper and easier.

VIDEO EXPLANATION

For an explanation of 1/1s and other NFT concepts, follow the Niftyist TikTok account.