[Glossary] Altcoins & Emerging Tokens Terms

CryptoKas

Below is a concise glossary of key terms you’ll encounter in Altcoins & Emerging Tokens discussions. Definitions are clear and practical—ideal for discovering and evaluating new projects.

Token Classification

Altcoin: Any cryptocurrency other than Bitcoin; includes large projects (Ethereum) and small “low-cap” tokens.
Blue-Chip Altcoin: A well-established altcoin with large market cap and proven utility (e.g., ETH, BNB).
Small-Cap / Low-Cap Token: Projects with smaller market capitalization—higher risk but potentially higher returns.
Micro-Cap Token: Extremely low market cap projects, often pre-launch or with very few holders.

Fundamental Metrics

Market Cap: Current price × circulating supply; ranks project size.
Fully Diluted Valuation (FDV): Current price × max supply; theoretical total value if all tokens are in circulation.
Circulating Supply: Number of tokens available and trading on the market.
Max Supply: Hard cap on the total tokens that will ever exist.
Total Supply: Tokens currently minted, including ones locked or reserved.

Project Documentation

Whitepaper: Detailed project blueprint explaining problem, solution, tech stack, tokenomics and roadmap.
Litepaper: A shorter, high-level summary for quick understanding.
Roadmap: Timeline of planned features, milestones and launches.
Audit Report: Security firm’s review of the project’s smart contracts and code.

Token Launch Formats

ICO (Initial Coin Offering): Public sale of tokens to raise capital.
IDO (Initial DEX Offering): Token sale on a decentralized exchange with instant liquidity.
IEO (Initial Exchange Offering): Exchange-backed token sale with KYC and listing guarantee.
Fair Launch: No pre-sale or private sale; tokens distributed evenly (e.g., via mining or public mint).
Airdrop: Free token distribution to holders of another token or participants in an event.

Tokenomics & Incentives

Emission Schedule: Timeline and rate at which new tokens are minted or released.
Vesting Schedule: Lock-up period for team/advisor tokens—prevents immediate sell-offs.
Inflationary Token: Continuously issues new tokens over time, increasing supply.
Deflationary Token: Burns or locks tokens regularly to reduce supply (e.g., via buy-back & burn).
Utility Token: Provides access to a service or feature within a network (e.g., gas for transactions).
Governance Token: Grants voting rights on protocol changes and treasury allocation.

Community & Growth

Social Metrics: Followers, engagement, and sentiment on Twitter, Discord, Telegram—gauges community health.
Developer Activity: Commits, pull requests, and releases on GitHub—indicates ongoing development.
Partnership Announcement: Collaboration with other projects or firms—often boosts credibility.
Exchange Listing: When a token becomes available on CEX/DEX—can drive liquidity and price discovery.

️ Risk Factors

Rug Pull: Malicious exit scam where developers drain liquidity and vanish.
Pump & Dump: Coordinated hype to inflate price then sell off, leaving late buyers at a loss.
Liquidity Lock: Staking LP tokens in a time-locked contract to prevent rug pulls.
Audit Risk: Absence of a reputable audit increases vulnerability to exploits.
Token Concentration: High percentage of tokens held by few addresses—can lead to price manipulation.

Pin this thread as your go-to reference for exploring altcoins and new tokens. Spot any missing terms or need deeper examples? Drop a comment below!