What Is Sweeping The Floor In NFTs?

What Is Sweeping The Floor In NFTs?

From Aaron Abbott

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When critics dismiss NFTs and their potential, the common error they make is to fixate on digital art. NFTs are characterized by the proliferation of dull, auto-generated digital art that sells for millions of dollars. Crypto Punks has made a name for themselves. Larva Labs was the minter and the project was created to test the technology and not to make money. The 10k Punks were free of charge. All those who accepted, even reluctantly were now looking green--and (greedily), for the next opportunity.

The NFTs market now has billions of dollars and integrates into many sectors of the economy, including art, gaming, and eCommerce. The quest to be the best in a highly competitive, growing market is becoming increasingly difficult.

What is Sweeping The Floor in NFTs?

This is why a new trend is emerging: "Sweeping The Floor" in NFTs, buying masse.

Sweepers are undoubtedly FOMOing and trying to get their newly acquired assets "moon" as soon as possible.

Are you still following?

It is frustrating to be immersed in crypto news  terminology every time you go; it's hard.

You don't have to worry, I will translate.

To begin, FOMO--Fear Of Missing Out.

Do you remember when Bitcoin "mooned?" Do you remember when Bitcoin rallied to its peak?

Many investors were attracted to the surge in prices from $20k to $40k, then to $68k. Most of them didn't want out. This fear continued to drive up prices.

FOMO in crypto trading refers to a bullish sentiment that indicates high demand for cryptocurrency assets. It can be traded in either a decentralized or centralized exchange.

FOMO was a problem when Uniswap's UNI and Polkadot’s DOT were launched. Blockster users are waiting for FOMO to get in on BXR readings from the thousands of CMC watchers.

The NFT community was not to be outdone and derived their FOMO from "sweeping the floors."

To put it simply, "sweep floor" in NFTs means that a project purchases all of its minted NFTs at the Floor price. The floor price refers to the minimum "ask", or the lowest NFT price that can be sold. The buyer is considered to have "swept" the floor if all NFTs listed are taken at the "floor".

Sometimes, however, a sweep is not possible because of a single buyer or project. A sweep is when there is positive news about a NFT project that suddenly buyers buy NFTs at the floor price.

Assets are purchased in bulk whenever an NFT floor sweep occurs.

Why users "Sweep the floor"

Floor sweep can almost always be automated so trades are executed faster and without drawing attention to the market.

It is not uncommon for high-potential project NFTs to be swept immediately by mint searcher bots. The purchaser will have an advantage, and can sell the newly acquired prices at a higher price "floor price", essentially flipping them for profit.

Profit maximization could be the motivation for collectors who are looking to make a living from their hobby.

Sometimes "sweeping the floor" can be used to reduce trading fees.

Ethereum is still the most active NFTs-mining platform, but it's very expensive to transact. Developers have had to invent to create "sweeping" NFT bots that automate digital asset purchases for multiple users, thereby reducing Gas costs.

Genie, an Ethereum-based marketplace that allows for the purchase of up to 60 NFTs from different Ethereum-based markets, such as Rarible or OpenSea in one transaction (or sweep), is making the broom more accessible. It has become the most popular NFT aggregation tool, saving time and Gas fees.

Buyers are protected from market changes when a sweep occurs. Scott Gray, founder of Genie, stated that the aggregator has moved more than $25 million in trading volumes during the week ending December 20,21. This pushed its trading volumes to $125 million from more than 10k users.

Depending on the application, democratizing the floor can be both good and bad.

It doesn't have to be bad, depending on how you apply it. Genie helps to reduce Ethereum's Gas fees and allows more people to purchase NFTs easily and cheaply.

This--and other similar tools--could also allow whales to manipulate markets from another perspective. They can easily acquire assets cheaply and arm-twist other market participants, unnecessarily bidding assets' prices higher, out of reach for the project's retail fan.

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