Crypto & IPO Glossary
Master the language of investing. From blockchain basics to advanced tokenomics, learn the terms you need to navigate the pre-IPO landscape.
A
Accredited Investor
A wealthy individual or institution that meets SEC criteria to invest in unregistered securities - the traditional gatekeeper to pre-IPO deals.
investingAMM
Automated Market Maker - an algorithm that sets prices and enables trading using math formulas instead of traditional order books.
defiAirdrop
Free tokens distributed to wallet addresses - sometimes for early users, sometimes for marketing, sometimes worth thousands of dollars.
tradingAnti-Dilution
Protection against down rounds - if the company raises at a lower valuation, your shares get adjusted so you don't lose as much.
investingC
Cap Table
A spreadsheet showing who owns what percentage of a company - the document that reveals how much your shares might really be worth.
ipo marketsCliff Period
The initial waiting period before any tokens unlock - your protection against team members cashing out and disappearing on day one.
tokenomicsCirculating Supply
The number of tokens currently available for trading - the supply that actually affects price, not tokens locked in vesting or reserves.
tokenomicsCrypto Presale
An early token sale before public launch - the opportunity to buy at the lowest price, but also the highest risk of scams and failures.
tradingConvertible Note
Debt that converts to equity in the next funding round - a fast way to raise early money without setting a valuation.
investingD
Direct Listing
An alternative to IPOs where existing shares are sold directly to the public without underwriters - no new shares, no lockups, no middlemen.
ipo marketsDue Diligence
The research process before investing - examining financials, team, market, and risks to avoid putting money into a disaster.
investingDeflationary Token
A token designed to decrease in supply over time through burns - creating scarcity that could increase value for holders.
tokenomicsDEX
Decentralized Exchange - trade crypto directly from your wallet without a middleman, using smart contracts instead of company servers.
defiDAO
Decentralized Autonomous Organization - a community-governed entity where token holders vote on decisions, replacing traditional corporate structures.
blockchainDown Round
Raising money at a lower valuation than your previous round - a sign of struggle that often triggers painful anti-dilution provisions.
investingE
F
G
I
IPO
An Initial Public Offering is when a private company sells shares to the public for the first time, allowing anyone to invest.
ipo marketsICO
Initial Coin Offering - the 2017 fundraising craze where projects sold tokens directly to the public, raising billions before regulations caught up.
tradingIDO
Initial DEX Offering - a token launch on decentralized exchanges, providing immediate liquidity without centralized exchange gatekeepers.
tradingImpermanent Loss
The loss liquidity providers face when token prices change - your LP position ends up worth less than if you had simply held the tokens.
defiL
Lock-up Period
The time after an IPO when insiders can't sell their shares - usually 90-180 days. When it ends, watch out for selling pressure.
ipo marketsLiquidity Pool
A pool of tokens locked in a smart contract that enables decentralized trading - no order books, no middlemen, just math and code.
defiLiquidation Preference
The right to get paid first when a company exits - investors get their money back before founders and employees see anything.
investingLayer 2
Scaling solutions built on top of blockchains that enable faster, cheaper transactions while inheriting the security of the main chain.
blockchainM
P
Private Placement
A direct sale of securities to select investors without a public offering - how companies raise capital without the hassle of going public.
ipo marketsPre-IPO Investing
Buying shares in private companies before they go public - the strategy that made early investors in Uber, Airbnb, and SpaceX millionaires.
investingPro-Rata Rights
The right to invest in future rounds to maintain your ownership percentage - protecting early investors from dilution.
investingR
S
SPAC
A Special Purpose Acquisition Company raises money through an IPO to acquire a private company - a backdoor to going public without a traditional IPO.
ipo marketsSecondary Markets
Platforms where you can buy and sell pre-IPO shares from existing shareholders - your liquidity lifeline before a company goes public.
investingSPV
A Special Purpose Vehicle pools money from multiple investors to meet minimums for pre-IPO deals - your ticket to the table when you can't buy a whole seat.
investingSmart Contract
Self-executing code on a blockchain that automatically enforces agreements - no lawyers, no middlemen, just code that runs exactly as written.
blockchainStaking
Locking your crypto to help secure a blockchain network and earn rewards - like earning interest for supporting the system.
defiSTO
Security Token Offering - a regulated token sale representing real securities, combining crypto efficiency with legal compliance.
tradingT
Tokenomics
The economic design of a cryptocurrency - how tokens are created, distributed, and what makes them valuable (or worthless).
tokenomicsToken Burn
Permanently destroying tokens to reduce supply - a deflationary mechanism that can increase value for remaining holders.
tokenomicsToken Allocation
How tokens are distributed among team, investors, community, and reserves - the pie chart that shows who really benefits.
tokenomicsToken Generation Event
The moment when tokens are created and distributed - when your investment transforms from a promise into actual blockchain assets.
tradingTVL
Total Value Locked - the total crypto assets deposited in a DeFi protocol, measuring its size and user trust.
defiTerm Sheet
A non-binding document outlining investment terms - the handshake agreement before lawyers draft the final contracts.
investingU
Unicorn Startup
A privately held startup valued at $1 billion or more - once rare, now there are 1,200+ globally, but most retail investors can't access them.
ipo marketsUtility Token
A token that provides access to a product or service - not an investment security, but a functional key to an ecosystem.
blockchain
