All about NFT whitelists

We’re back with another NFT blog! Today, we’re looking into NFT whitelists.

If you’re an NFT enthusiast, you’ve probably come across the term before. But what exactly does it mean? Let’s find out.

What is an NFT whitelist?

In the NFT world, whitelisting is the process of putting together a list of crypto wallet addresses that are pre-approved for the mint (or “drop”) of a new NFT project.

If you are whitelisted for the launch of an NFT project, it means that your crypto wallet address has been added to a list with special minting privileges. These privileges usually involve being able to mint one of more NFTs before the official launch date, as well as do so at a lower price.

Most NFTs are minted on the Ethereum blockchain, meaning the address being whitelisted would be your public Ethereum (ETH) address. However, NFTs can also be minted on other blockchains, such as Avalanche.

Why whitelist?

Whitelisting helps reward the early supporters of an NFT project, which then incentivises them to promote the project to others. These days, it’s also fairly common for a spot on the whitelist to be saved for social media influencers as a form of payment for their promotional efforts.

Whitelisting can also help avoid so-called “gas wars”. This happens when several people are all competing to buy the same limited supply of NFTs - buyers often offer a higher amount to the network validators in order to get their transaction through faster than the competition.

So, being able to choose a specific time to mint your NFT means you’re able to avoid network congestion and pay lower fees.

How do you get on an NFT whitelist?

There are three main steps to getting yourself on an NFT whitelist:

  1. Find a good project before it launches - try and get involved before it accumulates a large following. Rarity.tools is a good place to start if you’re on the hunt.

  2. Join the project’s Discord community - this is the place to be to learn more about the project, find out details of the upcoming launch and get to know the founding team.

  3. Follow the eligibility instructions - each project has specific requirements to qualify for the whitelist, from filling out a form to promoting the project on Twitter. Once you’ve fulfilled these requirements, you’ll need to provide your crypto wallet address, select a time for minting and wait!

You can find some helpful strategies for securing a whitelist spot in this article.

Are there any downsides?

Some NFT whitelists can be pretty competitive, which has led to an increase in eligibility requirements for certain projects. In fact, one user compared the process of carrying out the required tasks to a full-time job, labelling it “whitelist grinding”.

Of course, it’s important to stay alert to NFT scams - there are unfortunately a number of fake pre-sale NFT launches out there. If you’re ever sent a mint link in a private message, you can be sure it’s a scam. Find out what else to look out for here.

So, will you be joining any NFT whitelists?

Disclaimer: this article is for educational purposes only and should not be taken as financial advice.
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