NFT projects have resorted to a tactic known as “whitelisting” to restrict access to presale minting to just pre-approved crypto addresses in response to the surge in NFT users. Whitelisting is advantageous for both projects and users because it reduces fraud and prevents gas wars.
Read this article to discover what an NFT whitelist is, why you should be on one, how it works, and what you can do to improve your chances of being whitelisted.
What is NFT Whitelist?
An NFT Whitelist is a list of individuals who have priority access to minting NFTs at a specified time and date. Buyers on a list like this can avoid paying exorbitant secondary prices and considerable transaction charges for well-known NFTs.
NFTs “drop” or “launch” on a specific day. If you have been whitelisted for that NFT, you will have a limited opportunity to purchase a newly generated token before it becomes available to outside buyers.
While you wait for your time frame, your cryptocurrency wallet will be added to the NFT whitelist. This strategy makes NFT launches more democratic by ensuring early access to true supporters and avoiding the competitiveness and gas wars that are typically connected with successful NFT companies.
NFT whitelists: Pros and Cons
NFT whitelist Pros
- The primary benefit of being added to a whitelist is access to a specific NFT.
- You don’t have to participate in a gas battle thanks to whitelists. Furthermore, because you have a free time slot to finish your purchase, you will not have to pay more for faster transactions.
- While attempting to get your name included in NFT whitelists, you will become much more involved in the greater NFT community.
- You’ll learn a lot about fundamental systems and become a better investor as a result.
- NFT developers frequently utilize the strategy of providing free tokens or discounted fees to those on their whitelist. These creators want to get a lot of initial traction for their products.
- Several hundred whitelist spaces are provided by the developers to promote their products.
- The NFT makers will almost always make up any loss they incur by providing free or highly discounted whitelists through royalties from resale and free promotions that whitelisting entitles. These decreased minting prices are only available to people on an NFT whitelist.
NFT whitelist Cons
- It takes a long time to create a whitelist. Hours of internet engagement are required to ensure that your address is featured on a popular list.
- You must actively promote the token on social media and engage in key discussions with other supporters on the project’s Discord server. Despite your efforts, you may not be added to the whitelist.
- Scammers will occasionally prey on potential investors who want to be on a whitelist. Scammers may personally message you or entice you to click on random links.
- There is no promise that a project will succeed.
- You might be able to acquire early access to an NFT that doesn’t take off.
Why are NFT whitelists used?
Projects NFT whitelisting is done for three reasons: to reward early backers, to prevent gas wars, and to protect against spam.
Rewarding early supporters
The whitelist allows a smaller subset of the community to have early access to an impending NFT version. Some projects may give free NFTs and exclusive material to whitelisted users, while others may offer discounted presale access; all whitelist offers differ based on the NFT project.
Whitelist registration requirements differ from project to project. Some may demand a variety of chores to be done or a minimum wallet hold of the asset for that specific project. There is no set process for whitelisting; in fact, some projects may offer pre-approval if you actively participate in community events and discussions, with no official submission required.
Preventing gas wars
Because public NFT sales do not require whitelisting, many users interacting with the smart contract at the same time might cause transaction fees to skyrocket. This occurs when users compete to have their minting transactions approved first, driving up gas prices and resulting in “gas wars.”
In contrast, whitelist registration permits only a limited number of wallet addresses to mint the NFT before the public sale, reducing the likelihood of network congestion and gas wars.
Another efficient technique for whitelists to avoid gas difficulties is to set a timeframe within which NFTs can be created. It is important to note that the gas price will change depending on the overall blockchain network usage. Other minting sales or external events might sometimes have an impact on a whitelist sale.
A beneficial aspect of the whitelist concept for NFT projects is that if there is a high desire to join the whitelist, it generates hype and discussion about the release, project, and prospective future releases.
Projects can avoid spam from non-whitelisted addresses by establishing whitelisted users. Furthermore, the whitelisting procedure ensures that mass account registrations are not permitted. Preventing spam accounts from accessing presale minting is critical since it can reduce network efficiency and raise user gas fees.
How to have your NFT project get whitelisted in 3 steps?
Follow these three general steps to be listed on a whitelist for an NFT project:
Step 1. Find projects before they are launched
The first step is to find a project before they make their debut. It would be beneficial if you initially identified pre-launch projects and whitelisted them. This is a brand-new or ongoing initiative that is launching a new collection.
Step 2. Join Discord groups
After you’ve decided on a project, you’ll almost certainly need to join their Discord group. In the NFT community, Discord is the major mode of communication. Although each Discord’s structure varies, the “announcements” sections are usually where you may find instructions on how to get whitelisted. If not, take a peek around the group to see what you can learn. If you can’t find anything, try contacting other members of the group. There is usually a “general” section where people can talk about the project or NFTs.
Step 3. Apply to be on the whitelist
There are several ways to become whitelisted. To secure your status on the whitelist, you may be requested to fill out a simple Google form, invite individuals to Discord, or participate in a lottery that selects addresses at random. The notion is that each project is unique, with unique conditions for getting whitelisted. Only go with your gut instinct; there are lots of alternative projects accessible.
How to improve the chances of getting on an NFT whitelist?
To increase your chances of getting added to the list and receiving early access to the tokens, you must demonstrate your support for the organization by performing the following actions:
Maintain Active Engagement
Many NTF projects are designed to foster the development of a vibrant online community. To communicate with others, use the Discord server. Send a tweet emphasizing the most current occurrences. In-depth questions should be made to demonstrate your genuine interest in the project. These deeds will be observed, and the project’s founders will appreciate the time you put into it.
Every NFT creator wishes to grow the number of investors and customers who support their business. Spend some time on various Discord servers spreading the news about the token. Even if it takes some getting accustomed to, this direct marketing strategy will considerably boost your favorability among the major participants in the NFT ecosystem.
Participate in Giveaways
Many projects use giveaways to promote themselves on social media, offering spaces on their whitelists in exchange for unpaid assistance. Even if you are not added to the whitelists, you can improve your chances by participating in as many freebies as possible.
Be among the first to sign up
When an NFT project is in its early stages, the founders are eager to increase interest in the tokens. As a result, they are more likely to provide straightforward access to the NFT whitelist.
As the program gets popular, demand for whitelist slots increases, making it increasingly difficult to secure a spot. As a result, it is to your best advantage as an investor to uncover exciting concepts as soon as feasible.
Leverage Fan Art
Making fan art is the finest method to show your enthusiasm for a project. When you produce drawings based on the token’s concept, you demonstrate how much time and effort you will invest into the project. You also help to promote the token through your efforts.
Although NFT whitelists are useful, they do not ensure perfect investing circumstances. There is no such thing as a perfect investment situation. Putting your money into a project usually involves some risk. Whitelists, on the other hand, have less restrictions and offer various benefits. Numerous investors have successfully used them to create NFTs.