Moreover, scammers may conduct a phishing attack and entice investors to click on random links. As a result, users should take caution and only communicate with legitimate project representatives. This article will discuss the NFT whitelisting concept and process, why NFT whitelists are used, and how to get on an NFT whitelist. Even worse, Jake Paul failed to tell followers and fans that he was being paid for these endorsements, giving them the impression that these recommendations were actually personal endorsements. A Twitter user lists a number of celebrities accused of shilling NFT projects without letting audiences know that they were paid in money or with free NFTs. This type of scam is referred to as a rug pull, as in the rug being “pulled” from right out under the investor.
- Or they might provide other exclusive perks, like access to an exclusive Discord server or forum.
- Participating in these competitions are great ways to secure allowlist spots.
- With the non-fungible token (NFT)-mania growing and more interested users joining the bandwagon, creators are deliberately incentivizing select community members using NFT whitelists.
- Being on an NFT whitelist enhances the range of your market coverage, increasing your chances of making the most of the NFT market and making money from NFTs.
- The only way to get endowed with such discounted minting prices is by being on an NFT whitelist.
Sometimes NFT projects easily give whitelist spots to their early supporters without asking too many questions to create an initial demand for the whitelist itself. As we mentioned earlier, some NFT projects have specific giveaways on social media that reward individuals for sharing or retweeting posts in order to get a spot on the project’s whitelist. Regularly check Twitter and Discord for these in order to participate in as many as you can. However, when using social media to promote an NFT project, it’s important to avoid spamming or using overly repetitive posts.
There’s almost always an NFT project launching somewhere, meaning it can be difficult for NFT collectors or investors to keep pace and be ready to take appropriate action. Being on an NFT whitelist enhances the range of your market coverage, increasing your chances of making the most of the NFT market and making money from NFTs. With the non-fungible token (NFT)-mania growing and more interested users joining the bandwagon, creators are deliberately incentivizing select community members using NFT whitelists.
Benefits of NFT whitelisting
Many blockchain enthusiasts believe that NFTs will revolutionize the industry by allowing for the creation of unique digital assets that can be traded and sold in the marketplace. However, if you’re looking to mint a multi-bagger, it’s crucial to stay aware of the industry’s developments and get on the right NFT whitelists. If you’re whitelisted and get a chance to buy into an NFT project on day one, there’s more opportunity for you to flip your purchase for a profit. Thankfully, after learning their lesson from past hectic NFT launches, most large NFT projects now use a whitelist to prevent these issues. Within cybersecurity, a whitelist is a mechanism that allows only pre-approved users to interact with a system. Therefore, make sure you are constantly interacting with the project’s social media posts and are active on their Discord server.
In most cases, if a project launched a collection of, say, 4,000 tokens, there is every chance at least 100 or 200 scarce tokens with features that make them more valuable than the rest. Per the report, while 20% of the user addresses accounted for 80% of sales in the secondary NFT market, 5% of all user addresses accounted for 80% of profits made on secondary NFT sales. This means, therefore, that those not whitelisted only manage about 20% of profits.
How do you know if an NFT is whitelisted?
Nonetheless, these issues have been solved by NFT providers by establishing whitelists or allowlists, giving special privileges and access to a newly minted nonfungible token. Before public minting begins, nonfungible token projects employ allowlists to restrict who can mint NFTs. For example, one can mint NFTs without being concerned about gas wars if they are on the whitelist.
Sharing and retweeting their posts, participating in giveaways, and inviting others to Discord are some ways to stay engaged. For most NFT projects, Discord is where the most activity and important announcements happen. This way, you can ensure you don’t miss any instructions about joining the NFT allowlist.
NFT Whitelist: 5 Ways to Get Whitelisted!
This stops a huge amount of people from all competing against each other to mint at one, which would typically lead to people bidding up gas prices higher and higher. For NFT investors and traders, getting whitelisted has major potential financial advantages. In fact, one market report from Chainanalysis suggests that more than 75% of all NFT profits come from whitelist NFT sales, meaning that less than 30% of all NFT profits come from non-whitelist NFT sales. This means that there is a massive “first mover” benefit to getting on a whitelist and minting your NFTs before everyone else. The NFT whitelist system eliminates the need for gas limit values and prevents users from accidentally sending tokens to an address that does not support the ERC721 standard.
However, there’s no guarantee that a particular NFT will go up in value after launch, so this is a risky approach and not a reason we recommend buying NFTs based on. As we showed with the example earlier, it’s not uncommon for NFT launches to sell out in under a minute. In their early stages, the majority of NFT initiatives seeks community members who can aid in raising awareness and reward participants in return. One can search for projects on Twitter and YouTube or use platforms like Rarity.tools to stay up to date with the latest trends. Like any business, NFT projects value their most supportive fans and customers.
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You might even get involved in expensive gas wars, which can cost you more than the actual price of the NFT. In short, NFT whitelists are akin to much sought-after golden tickets in the NFT space. For more information on gas fees on Binance NFT, check out our guide on What are the NFT Transaction Fees on Binance.
- Users must wait for the appointed date, and they will be able to access their account at the designated time and mint an NFT as agreed upon.
- In this article, we’ll explain exactly how whitelisting works, how you can get on an NFT whitelist, the potential benefits and risks of NFT whitelists, and everything else you need to know about NFT whitelisting.
- All of this means that a project’s NFTs are more likely to end up in the hands of a diverse number of real, engaged owners, instead of simply ending up in the hands of a few unscrupulous whales.
- By establishing whitelisted users, projects can prevent spam from non-whitelisted addresses.
- In this article, we’ll explain what is NFT whitelisting, use of NFT whitelisting, how do you know if an NFT is whitelisted, benefits of NFT whitelisting, and how to get your NFT project whitelisted.
- For instance, holders of the Bored Ape Yacht Club received free Mutant Ape NFTs, allowing existing users to mint new apes for free.
There’s no better way for founding team members to notice you than by actively engaging in their Discord chats and contributing meaningfully to project-related conversations with other community members. A Twitter Whitelist giveaway announcement for the NFT project Stella Fantasy.
To explain, you have to find good projects before they launch and be an early supporter. And of course, our NFT Evening Calendar is a good place to keep a tab on all the latest drops. Once you have found some interesting projects, sign up to waitlists before the drop.
However, if you are not an early adopter, you need to be aware of the risks involved as you are placing trust in a new project that has yet to prove itself. With NFT scams prevalent, it is advised to always do your own research before joining a whitelist. Many new and existing NFT projects have active and engaged communities looking to secure the latest NFT drop from their favorite projects. For some projects, it’s vital that the newest release is democratic and accessible to all, and one of the fairest ways to do this is through a process called whitelisting. Read on to find out how NFT whitelisting works and the steps you can take to increase your chances of being whitelisted.
Quickly selling out is taken as a sign of a quality and highly sought-after NFT project. So many NFT creators will sell at a discount before the official launch to make sure they aren’t left with extra NFTs that nobody wants to buy. Even if you’re online exactly when the project launches, you might not be able to enter your information fast enough to guarantee that you’ll be able to buy an NFT. It may be hard to successfully get whitelisted for other platforms or companies due to a lack of transparency regarding requirements. However, on Binance NFT, the selection criteria are transparent and fair, thanks to the Binance NFT Subscription Mechanism. One example of fraud is when someone repeatedly buys and sells their assets to inflate prices artificially.
The Cons of Being in a Whitelist
Due to the influx of NFT users, NFT projects have turned to a strategy called “whitelisting” to grant presale minting access to only pre-approved crypto addresses. Whitelisting is beneficial to both projects and users as it helps mitigate fraud and avoid gas wars. While priority or early access to crypto may sound like a lucrative idea, users should note that being on a whitelist and minting presale NFTs does not guarantee profits. If you mint NFTs that are unpopular, they might just end up being illiquid assets that are difficult to sell on the secondary market.
Whitelisting also allows projects to restrict who can receive specific tokens. Many investors have had poor experiences investing in NFTs and getting on whitelists due to these reasons. Moreover, projects are turning to opportunists to extract the maximum value from their supporters by using Dutch Auctions. The project raised $80 million for a game that won’t exist until at least 2024. Currently, each NFT is worth only around 0.2 ETH, 15x less than what they were initially sold for.
To some, that could look like paid “shilling” and could actually hurt the project, reducing your chance of getting on the whitelist. The simplest way to know if an NFT is whitelisted is by looking at its smart contract code. Alternatively, you can look at its website or listing page on an exchange and see whether it’s smart contract is listed as one of the “approved” contracts. Some NFTs also display their whitelisting status as text on their websites or in their listing pages. This can be used in lots of ways, but the most common use is to prove that you do actually hold specific crypto assets. Although NFTs are a relatively new concept in the world of blockchain, they are quickly becoming popular due to their great potential.
Those on the coveted NFT whitelist get guaranteed access to mint, and may even get to mint for free. As NFT continues to make waves, the competition to mint may be tough, depending on how popular the project is. If you’re interested in minting NFTs, consider applying to get whitelisted and increase your chances of a successful mint.