Glossary

Learn the language
before reading the signal.

Core terms used throughout the TokenRealm Academy.

AMM

Automated Market Maker: a mechanism that prices trades through liquidity pools rather than a traditional order book.

FDV

Fully Diluted Valuation: estimated valuation if the relevant total or maximum supply were circulating.

Market cap

Token price multiplied by circulating supply.

Liquidity pool

A reserve of assets used to facilitate decentralized exchange trading.

Slippage

The difference between the expected trade price and the actual execution price.

Price impact

The price movement caused directly by the size of your own order.

Holder

A blockchain address that owns a token.

Whale

An actor with enough capital or supply concentration to materially influence a market.

Smart money

An informal label for wallets considered experienced or historically effective.

Rug pull

A malicious extraction or destruction of market value by actors controlling a project or its liquidity.

Honeypot

A token or contract designed to allow buying while blocking or heavily penalizing selling.

Mint authority

A permission that can create additional token supply.

Burn

A verifiable process that permanently removes tokens from usable supply.

LP position

A position providing assets to a decentralized liquidity pool.

MEV

Value that can be extracted through transaction ordering, inclusion or exclusion.

Sandwich attack

A strategy that trades around another transaction to exploit its price impact.

Narrative

A shared story or theme that concentrates attention around a token or category.

KOL

Key Opinion Leader: a creator or influencer followed by a specific community.

Wallet clustering

The use of behavioral and funding patterns to identify addresses that may be related.

Invalidation

A predefined condition that makes the original trade thesis no longer valid.

Bonding curve

A pricing mechanism where token price changes according to a predefined relationship with supply or demand.

Wash trading

Artificial activity created by repeated or coordinated trades that do not represent genuine independent demand.