The ever-growing popularity and demand for NFTs have created situations in which market demand outweighs the supply while community members keep grinding for NFT whitelisting.
The scarcity/rarity of an NFT is an essential feature that has influenced its value in the eyes of investors. Buying NFTs as soon as they’re minted on the Blockchain is a great way to get in on the project and utilize its early access by leveraging low fees to purchase the NFT.
NFTs are often available at the lowest prices immediately after launching. Everyone wants to get in on a project and wouldn’t want to miss the opportunities that come with getting in as an early bird centered on buying these NFTs as low as possible and selling high.
Unfortunately, since everyone has the same interest, the fierce competition for these newly minted tokens can spin up prices and send transaction fees through the roof.
NFT Projects have solved these problems by creating whitelists for early bird’s/supporters.
In this article, you’ll understand
1. What an NFT Whistlist is.
2. How Does NFT Whitelisting Work?
3. What are the Pros and Cons of NFT Whitelisting?
4. Strategies to stay in the loop with NFT projects.
What Is an NFT Whitelist?
An NFT Whitelist is a collection of people guaranteed early access by the project to mint NFTs at a particular/said date and time. This method helps NFT buyers/hunters avoid extreme secondary prices and hefty transaction fees.
If you’ve been whitelisted for that NFT on the said date for the launch, you’ll have a certain amount of time to buy a newly minted token before it’s made available to outside buyers.
Your crypto wallet will sit on the NFT whitelist as you wait for your time slot. This mechanism makes NFT launches more democratic, ensuring early access for faithful supporters.
By allowing fans to the mint before the general population, projects avoid competition and gas wars often associated with popular NFT projects.
How Does NFT Whitelisting Work?
Whitelisting works by obtaining digital wallet addresses and giving them early access to newly minted NFTs.
Depending on the Blockchain you’re using to mint, the address of the Blockchain will end up on the list.
Although most NFT projects exist on the Ethereum blockchain, you’ll use your ETH address.
As a potential buyer, the first step is to get your address approved for the whitelist. Most projects want their NFTs to be available to their fans/early supporters. During this phase, the project will assess your account and decide whether it’s worth adding to the whitelist.
If the project successfully adds your account to the NFT whitelist, a said date and time will be assigned for you to mint a new token. This time slot varies for different projects, but most NFT projects grant a two-day opening.
Having joined the list, you must wait for the assigned date and time to arrive, and you’ll be able to log in to your account and mint an NFT.
What are the Pros and Cons of NFT Whitelisting?
Pros of NFT Whitelisting
Getting on a whitelist guarantees you access to a certain NFT. When a token is in high demand, you might fear that you’ll miss out on the initial minting process and be required to pay at a higher rate on the secondary marketplace. Earning a whitelist spot eliminates this risk.
As a result, one can avoid the competition, on-chain traffic, and skyrocketing gas expenses. The open time slot to make your purchase means you won’t have to pay extra for faster transactions. Saving on fees allows you to put more money toward actual NFT purchases.
Early birds might also get the chance to be part of the project’s airdrop of NFTs before the final launch.
NFT whitelists will help you get much more involved in the general NFT community, thus giving you more exposure. You’ll get to experience and learn a lot about how basic systems operate, which will, in turn, make you a better and wiser investor.
Cons of NFT Whitelisting
A significant drawback of getting on a whitelist is that it’s a time-consuming process. Making sure your address makes a list requires hours of online engagement.
You might be doing a lot of tweeting, retweeting, and even discussing the project with other fans on the Discord server and still not end up on the whitelist.
Also, it’s a gamble as there’s no guarantee a project will successfully do well. So you could gain early access to an NFT that ultimately fails to gain traction. Thus when this happens, you end up losing both time and money.
So try to do some homework on the project before getting involved, and only invest the money you’re willing to lose.
Finally, sometimes scammers take advantage of potential investors hoping to be placed on a whitelist.
Protect yourself from this risk by being aware of sudden offers from unknown sources. This offer includes sending direct messages or encouraging you to join random links.
Exercise extreme caution and engage only with people who are verifiably connected to a known project.
Strategies to stay active and get yourself on the whitelist.
Be in the loop.
Are you a fan of the NFT project? If so, this gives you an advantage, as most projects offer a whitelist spot to supporters who are genuinely interested in the project.
To get noticed and earn a spot, join the project’s Discord server and have meaningful conversations about the project with other community members.
Grow the community.
Many NFT projects appreciate it when fans/supporters bring in more potential buyers. You can send an invite link to your friends and other Discord servers to invite people to the NFT project.
You can tweet, retweet, and talk about the project on your social channels to show your support.
Participate in giveaways.
Most projects promote themselves on social media looking to reward community members with giveaways and offering places on their whitelists in exchange for promotion.
To participate, tweet, retweet, or share information as instructed, as these activities help Increase your odds of getting a whitelist.
Be an Early Bird.
Most projects easily give spots on the whitelist to early supporters without asking too many; this is to create initial demand for the whitelist.
The key here is to identify a project at an early stage and become one of the first few members of their Discord channel.
NFT whitelists give traders early access to the projects that they love. This simple mechanism can avoid high gas fees and obtain the tokens at a lower total cost.
I’m sure you can agree that getting on a whitelist can be quite tasking, but a few days of effort can go a long way in landing you a chance to mint an NFT and flip it for a high-profit margin.
You can potentially earn thousands of dollars in just a few days by investing your time and less of your money.