Whitelist NFT: What is it? How to be on it?
Everyone has heard of users flipping NFTs for enormous gains but do you hear about NFT whitelists?. The key to earning big profits in the NFT space is to buy the non-fungible tokens for the lowest price and sell them for a higher price. And the most profitable approach in purchasing non-fungible tokens for a cheap price is to grab them as soon as they are dropped on the venture’s site. This step ensures that you bypass the price rise that happens once they enter secondary marketplaces.
A new trend in the NFT space is ‘NFT Whitelisting.’ In this strategy, projects provide pre-sale minting access to a lucky few pre-approved crypto addresses. Doing so helps prevent fraud and mitigate rising gas fees. Essentially, whitelisting enables non-fungible token ventures to incentivize and reward loyal supporters by providing them with guaranteed slots to mint a non-fungible token.
What exactly is a whitelist non-fungible token?
Basically, an NFT “whitelist” is a place confined for someone (typically a dedicated user) to mint the token before the public offering. Often, the whitelist determines who gets to mint an NFT in a high-demand project. Whitelist spots are restricted and almost always guaranteed to be minted first. This means that your digital wallet address is eligible to mint an NFT before the general public.
To be whitelisted, one must pursue the NFT venture team’s defined process to obtain the ETH (or other crypto wallets) address that has been pre-approved. Having your wallet address pre-approved means you can mint an NFT at a predetermined day and time before the collection goes public. This predetermined date and time are established as a time window for whitelisted addresses. However, some initiatives permit whitelisted addresses to mint a non-fungible token within 48 hours, while others may have a shorter or longer time frame.
How to get on an NFT whitelist?
Find a project before its launch
Finding an upcoming NFT project before its launch is the first step of the process. You must carefully sort and identify a project before it becomes popular. Many NFT projects nowadays debut on Twitter or Discord, and share sneak peeks of the NFTs to measure the level of interest. You can also keep track of new and upcoming drops on verified NFT marketplaces.
Follow the project’s social media accounts and Discord server
Once you have identified an interesting NFT project, you must follow them on all social and Discord channels. After you have joined their Discord server, go to the “announcements” channel and see what they have posted. If it is not listed in announcements, check for a channel called “whitelist,” “allowlist,” or something similar.
While there is no standard way for projects to structure their Discord channel, most of them have a channel dedicated to whitelists. Your final option is to approach other group members to find out how you can become a part of the whitelist. But, it would be best if you only did this once you have exhausted all other methods.
Fulfill the eligibility regulations to make it on the whitelist
Every venture will have a distinct whitelisting process, guidelines, or criteria. Most guidelines consist of instructions such as inviting new people to the community, chatting online, winning contests, participating in giveaways, or contributing to fan art. Whatever the instructions are, you will likely make it to their NFT whitelist if you follow them sincerely.
What happens when you are whitelisted for an NFT?
When you are whitelisted for an NFT, you get early access to mint the asset once it’s launched. You can acquire a brand new NFT for a lower price or even get it for free. Being the first ensures that you get to avoid gas wars.
You can select a time of your choice within the timeframe to mint the non-fungible token when you’re on the whitelist. By doing so, you are ensured to get significant space between transactions. As a result, there’ll be reduced gas costs in addition to less network congestion and competition.
Gas wars occur when many NFT buyers (or bots) attempt to mint NFTs simultaneously, causing a spike in gas prices. When new NFT projects go viral, competitive collectors rush to mint the NFT before the available quantity runs out. Most of them are ready to shell out more money to prioritize their transaction over others.
Upcoming NFTs can avoid gas wars by
a) whitelisting, which restricts minting to pre-approved wallets
b) pre-sales, which divides the minting process into smaller batches
Here are the benefits of whitelisting NFTs:
Incentivize early supporters
Whitelisting is an excellent technique to entice NFT influencers to promote a project to their audience without incurring enormous upfront marketing costs. The backers are impelled to engage in the venture and also spread the word about the venture.
It also creates greater transparency and reduces fraud. Whitelisting prevents unverified wallet addresses from accessing the NFTs and significantly decreases the defrauding behavior. This is because the purchasers must fulfill the whitelist eligibility requirements before they can access the non-fungible token pre-sale.
Furthermore, limiting the mint period will discourage the fraudsters from wanting to dominate the venture’s non-fungible token market.
Reduced transaction fees
Because all transactions will be initiated through verified accounts, the overall transaction cost is lower when compared to a public sale. With only verified users allowed to attend the pre-sale, the efficiency of the minting process enhances. Each transaction is completed faster than on other blockchains, where everyone can access it at any moment.
What is pre-sale NFT?
Pre-sale NFTs, or token pre-sale, are opportunities for loyal investors or community members to obtain NFT at a lower price before its official commercial launch. It is the process of opening the minting process to the members or early supporters of an NFT project before the formal launch, typically through a whitelist or a mint pass.
NFT collectors can use their mint passes to purchase an NFT at the public auction. The mint pass is carried out by “burning,” which generally means shifting an NFT to a stipulated crypto wallet, so the collector is unaffected by fluctuations in gas fees.
NFT initiatives can benefit from pre-sale to gauge interest in their projects. If whitelist spaces fill quickly, it’s usually a sign of a successful launch, though it doesn’t always ensure the NFT’s long-term viability. Furthermore, full whitelists foster FOMO and momentum for public sale among many other NFT collectors who were not whitelisted.
Low or slow whitelist signups, in contrast, may imply that the projects’ vision, community, and the product itself need to be improved. Alternatively, the market may be in the middle of a bear cycle. In any case, it helps NFT projects better time market debuts.
With all of the developments in the crypto and Web3 spaces, NFTs are here to stay. Numerous crypto enthusiasts believe that NFTs will not only add a new dimension of experience to the gaming sector but will also open the way for a new class of corporate applications in the near future. Therefore, if you want to jump on the bandwagon, now is the time.
Understand that getting on an NFT project’s whitelist takes some effort. However, the fruits of your labor may allow you to mint a non-fungible token and sell it for a substantial profit margin. It is possible to make thousands of dollars in a matter of days by investing some time and a small amount of money.
Whether you wish to learn about NFT, Blockchain, Web3.0, Metaverse, or other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.
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