Sweep the Floor: Everything to Know
By Beluga Research August 26, 2023
- "Sweep the floor" is a term used in the NFT market to describe buying up many of the cheapest NFTs in a collection
- Sweeping the floor can be done by project owners or buyers for different reasons
- Project owners may sweep the floor to create scarcity, increase demand and boost the value of NFTs
- Buyers may sweep the floor to acquire more NFTs for portfolio and speculate on future price appreciation
"Sweep the floor" is a term used in the NFT market to describe buying up many of the cheapest NFTs in a collection. NFTs, or non-fungible tokens, are unique digital assets representing anything from art and music to gaming and sports. NFTs are powered by blockchain technology, which ensures authenticity, ownership and scarcity. One of the terms that are commonly used in the NFT market is sweep the floor.
Users must first understand the floor price to understand what sweeping the floor means and why it is done. Sweeping the floor is a strategy that both project owners and buyers can use for different purposes and with different outcomes.
A Brief History
The term "sweep the floor" originated from the traditional stock market. The crypto market adopted the term, which was used to describe buying up all the coins or tokens available at a certain price level. This created a crypto price support level or triggered a short squeeze.
The NFT market then adopted the term. It described buying up all the NFTs available at a certain price level. This was done to create a scarcity effect for the NFTs or to trigger a price appreciation. The term became famous in 2021 when the NFT market experienced a massive volume, value and variety boom.
Many new projects and collections emerged, offering different types of NFTs with other features and benefits. Some of these projects and collections became successful and attracted many buyers. Some buyers and investors adopted sweeping the floor to acquire more NFTs or influence prices.
What is Sweep the Floor?
To sweep the floor means to buy up all or most of the NFTs available at the floor price in a collection on the secondary market. The secondary market is where NFTs are traded after NFTs are minted or released by creators. Project owners may sweep the floor to create scarcity, increase demand and boost the value of NFTs.
By buying up all or most of the NFTs at the floor price, project owners reduce the supply of NFTs on the secondary market. This makes them more scarce and desirable. Users also increase the demand for NFTs by creating hype or buzz around a project or collection. Buyers may sweep the floor to acquire more NFTs for portfolios and support favorite projects. Users increase holdings and exposure to a project by buying up all or most of the NFTs at the floor price.
Sweeping the floor can have different effects depending on the context and the outcome. It can have positive effects, such as creating momentum, a community and a reputation for a project. It can also have adverse effects, such as creating volatility, competition and risk for a project.
- Choose a platform. Many platforms and marketplaces offer different types of NFTs with other features and benefits. Some of the most popular ones are OpenSea, Rarible, SuperRare, Foundation and Nifty Gateway.
- Select the desired collection to sweep up. Many collections and projects offer different types of NFTs with different themes and styles. Some of the most popular ones are CryptoPunks, Bored Ape Yacht Club, Art Blocks, Cool Cats and Pudgy Penguins.
- Check the floor price of the collection . The floor price is the lowest price an NFT can be sold at on the secondary market. Users can check the floor price using Rarity Tools, Nansen, DappRadar or CryptoSlam.
- Determine spending and NFT quantity. Sweeping the floor can be expensive and risky. This depends on the floor price and the number of NFTs available at that price. Users should only spend what they can afford to lose.
- Execute the order and buy up all the NFTs at the floor price. Users can use tools like MetaMask to connect the wallet to the platform where one wants to trade NFTs. Users must find the NFTs listed at the floor price and click the buy button. The user has just swept the floor.
- Based on buying low and selling high. Sweeping the floor involves purchasing many of the least expensive NFTs within a collection. These are then resold at a higher price as value increases. This differs from other strategies based on buying high and selling higher, such as flipping or scalping.
- Emotions and psychology influence it. Sweeping the floor is influenced by emotions and psychology. These include fear, greed, FOMO (fear of missing out), and FUD (fear, uncertainty, and doubt). These emotions and psychology can affect buyers and sellers in different ways, such as creating panic, euphoria, excitement or disappointment.
- Dependent on timing and luck. Sweeping the floor is dependent on timing and luck, such as finding the right opportunity, the right platform, the right collection and the right project to sweep the floor.
- Based on community and loyalty. Sweeping the floor is based on supporting and promoting a collection one believes in. By buying up all or most of the NFTs in a collection, sweeping the floor can show one's commitment and dedication to that collection. This differs from other strategies based on individualism and opportunism, such as arbitraging or sniping.
- Scarcity and demand. Sweeping the floor can create scarcity by reducing the supply and increasing the interest of the NFTs in that collection. This can make the NFTs rare and valuable, attracting more buyers and investors.
- Boost the value and the reputation. Sweeping the floor can increase the value of a collection by raising the floor price. This also creates momentum for that collection and attracts more buyers. It can make the NFTs more expensive and famous, enhancing prestige and recognition.
- Generate profits and rewards. This can create profits and rewards for project owners and buyers. This is done by allowing them to sell NFTs at a higher price than users bought them.
- Create diversity and variety. Sweeping the floor can make a collection diverse and varied by adding more NFTs with different attributes and traits. This can enhance one's portfolio and showcase taste and style. Sweeping the floor can allow one to own more NFTs with different characteristics and features.
- Create fun and enjoyment. This can add excitement and thrills to the NFT market. Sweeping the floor can make an investor feel more adventurous and exhilarated as they try to find and buy the best deals in the NFT market.
- Volatility and risk. Sweeping the floor can create volatility and risk for a collection by making its price fluctuate unpredictably and uncontrollably. Sweeping the floor can cause sudden spikes or drops in the price of an NFT, making it unstable and unreliable.
- Competition and conflict. Sweeping the floor can create competition and conflict in a collection by making it more attractive and appealing. This can draw the attention of other buyers and investors who want to challenge the floor sweeper. Sweeping the floor can spark a race for an NFT, making acquiring it more expensive and challenging.
- Scams and hacks. This can attract scammers or hackers who want to deceive buyers and investors by creating fake NFTs, manipulating prices and misappropriating funds.
- Addiction and obsession. Sweeping the floor can create addiction and obsession by making one spend more time and money on the NFT market than the user should. Sweeping the floor can make one feel more compelled and addicted to keep buying more NFTs. This can make one's behavior more addictive and obsessive, affecting health and well-being.
- Waste and inefficiency. Sweeping the floor can make one accumulate more NFTs than the user can manage, especially if the user doesn't have a clear plan. This can make one's portfolio more wasteful and inefficient, reducing its potential and performance.