What is NFT Whitelisting? 3 Things You Should Know
Have you seen people looking for NFT whitelisting opportunities and working hard to get whitelisted? Have you ever wondered what exactly is a whitelist and why crypto investors are so crazy about it? In the cryptoverse, a whitelist is a list of wallet addresses that have early access to the NFT projects and enjoy rewards for being the early supporters of the project. In this article, we are going to walk you through the basics of NFT whitelisting and how you can get whitelisted for an upcoming NFT launch.
What is NFT Whitelisting?
NFT whitelisting refers to the process of allowing specific wallet address to mint their NFTs on the blockchain network before they are officially launched for sale to the public. Different NFT projects may have different criteria for the community members to get whitelisted for the NFT launch. The users have to fulfill these criteria to get access to minting before the final launch. In addition to this, the whitelisted users can also select a date and time to mint their NFTs on the Ethereum network.
As the users select their preferred time slots to mint their NFTs, the number of users minting their NFTs on the network decreases significantly. This allows the users to mint their NFTs in a short time and at a lower gas fee. Moreover, NFT whitelisting provides several other benefits to whitelisted users. For example, the whitelisted users have voting powers in the upcoming decisions of the team. They can get additional rewards and sometimes, can mint their NFTs at no cost! This is why a huge number of users battle amongst themselves to be the first member to get whitelisted for an NFT launch.
Why is there a Need for NFT Whitelisting?
The ever-expanding nature of the NFT world and cryptocurrencies have posed numerous hurdles in the way of genuinely-interested buyers. It is because the investors who buy NFTs just for the sake of profiting from them often get their hands on them, way before the interested buyers. Similarly, there are a few other reasons why there is a need for NFT whitelisting so that the project finds its place in good hands only. Let’s discuss these reasons in a bit more detail.
1. To reward early birds for their support
NFT whitelisting enables projects to incentivize people for offering their support to the project by giving them opportunities to mint NFTs and buy them at a reduced price or even free of cost. This pushes the investors to talk about the project excessively among their friend circles so that the value of the project increases and they can get a higher value for their NFTs.
This helps both the investors as well as the projects in order to create a hype about the project in the community and attract a lot of buyers. Lastly, a strong community around the project ensures that the NFT holders will find enough genuine buyers in case they want to sell it off in the future.
2. To prevent a gas war
Since most of the NFTs are minted on the Ethereum blockchain, there may be the occurrence of a gas war when a popular NFT project launches. This is because a lot of people are trying to mint their NFTs at the same time. In such a rush, the transaction fee or the gas fee required to mint NFTs on the Ethereum blockchain can be many times higher than the usual fee.
Therefore, whitelisting helps to fight this gas war by letting whitelisted investors pick out specific timings when they would like to mint their NFTs. This allows the investors to spread their transactions over a long time and prevents the over-crowding of the blockchain system.
3. To provide guaranteed access to the NFTs
As discussed above, interested buyers may miss out on getting their hands on an NFT project, especially if the project has an already existing popularity in the market. So, whitelisting helps buyers to confirm their access to the NFTs and get guaranteed access to minting them on the blockchain. Also, it helps the buyers to escape the overall price increase that may occur at the launch of NFTs.
NFT Whitelisting: How to Get NFT Whitelisted?
Getting whitelisting for an NFT is extremely simple and involves three very basic steps.
1. Find the project with NFT tools
Finding a good and meaningful project is the key to getting successfully whitelisted for a profitable NFT investment. You can find the various NFT tools to find the rarest NFTs before their launch and a large community around them. It is because, at this point in time, the chances of getting the best NFT prices are the highest.
2. Join their community
Secondly, you need to join their community, usually their Discord groups for getting on top of their major announcements, ways to get whitelisted, and the advancements in the launch of the project. You can refer to the social media handles of the project such as Twitter, Instagram, or the official website of the project to join their Discord communities.
3. Follow the steps and eligibility to get whitelisted
Lastly and most importantly, you have to follow the instructions given by the community moderators to get whitelisted for the NFT. The eligibility criteria for each NFT project whitelisting are different. While some may whitelist you just on the basis of your participation in giveaways, some may look at your personal efforts to market the NFT.
Once you fulfill the eligibility criteria, you will need to provide your wallet address and select a time to mint the NFT on the blockchain. That’s it! After that, you can mint the NFTs at the selected time slot on the selected date without any hassle.
NFT whitelisting is a great way to build an NFT collection at minimum costs. However, since the projects may have a varying number of steps to be completed by a user to get whitelisted, the members may face difficulties. But we assure you that getting whitelisted is totally worth the effort as having ownership of NFTs can open several avenues for you to earn passive income. You can stake them, farm them, sell them, and so on. Check out this blog to know ways to earn money from the NFTs that you already own.