To flip means to buy an asset intending to resell it quickly at a higher price. In crypto slang, it is often used for NFTs, newly issued tokens, or other assets driven by attention and temporary scarcity.
Use and limits
The term describes the plan, not the result. A visible asking price does not mean that a buyer is ready to transact there, and the last sale does not guarantee the next one. The net result includes spread, gas, fees, any royalties, and slippage; in a thin market, there may be no counterparty when the holder wants to exit.
The NFT guide distinguishes floor price, genuine demand, tokens, and linked rights. Buying and selling explains the broader difference between a decision, an order, and its execution. Artificial volume or trades between related parties are wash trading; they do not demonstrate liquidity.
Sources
- U.S. Treasury — Illicit Finance Risk Assessment of Non-Fungible Tokens — Describes NFT markets, volatility, fraud, wash trading, and other risks that can distort signs of demand.
- IOSCO — Policy Recommendations for Crypto and Digital Asset Markets — Addresses market integrity, conflicts, transparency, and sound price formation at crypto-asset trading venues.