NFTs or non-fungible tokens have taken the world by storm. The internet is like the mind of the world. Everyone can come together, gather into communities they like and want to support. As a result, reaps socio-economic value. This is how human beings were. Bands of small communities who were close-knit and traded items of value as and when they needed. NFTs promise to help communities and individuals find their passions and monetize them. So go full steam ahead to NFT whitelist and understand what they are.
What is an NFT Whitelist?
In simple terms, an NFT whitelist refers to shortlisted cryptocurrency wallet addresses.
Think of it, like a selection to become the first people who are eligible to mint NFTs early, post the launch. New NFT projects are getting launched every day. It is better to reward early contributors to a project’s future success. Projects do this by letting individuals benefit and mint their NFTs early.
Why do we need an NFT Whitelist?
NFTs started gaining a lot of traction from early 2021 onwards. It was partly owing to the popularity of NFT projects like CryptoKitties. Owing to huge demand, there arose the notorious ‘gas wars’. So, what are gas wars, you wonder?
Ethereum is the most popular blockchain for NFTs. It was the first general-purpose blockchain to launch. But, owing to its decentralization, it works on a proof of work system. The costs to process transactions can rise quick when lots of people want to buy and sell NFTs.
In the rush to mint NFTs from new projects, many participants and users got priced out. This was because they could not afford to pay hundreds of thousands of dollars in gas fees. NFT projects realized this was unfair to early contributors, passionate about NFTs. But could not afford to mint the NFTs they deserved. Then arose the concept of NFT whitelisting.
Why you need to join NFT whitelists
There are hundreds of NFT projects launched every month. It is hard to keep track of them. You, as a collector or an investor, want to get in on the action. NFT whitelists are the best chance you have to make the most of the NFT market from a commercial point of view. It increases the scope of market coverage, but also help you understand the nuts and bolts of the NFT market. So, how can you begin? Follow the below simple steps:
Understand the NFT Project’s Whitelisting Process
The first step is to focus on the NFT project itself. Find out who the members of the team are. Reach out to some community members on social media. Every project has a Discord server, a Telegram channel and a Twitter account.
This is where community members interact with the team. This is to understand future scope and potential of the project. Community members can also contribute to the project’s success with their own skills. Hence, don’t think of yourself as a customer. Think of yourself as an owner. And every owner does whatever he can to support the execution team’s vision and add to it. Check out how the project decides who makes it to the Whitelist.
Start Taking Action About it
Every NFT whitelisting process explains how community members can make it. For example, there are many projects which need you to be active on social media and build hype for the project. This is to announce the project among people and build a bigger community. Likewise, other NFT projects may ask for skills like coding or marketing or writing. Hence, it’s up to the uniqueness of each project to specify how they choose people for the whitelist.
Community is Everything
Do not for a second think as if NFTs are all about buying and selling artwork. Many people come to NFTs because of the sheer potential to make a lot of money. But, a majority of the people who stay active in the market are passionate community members.
Hence, when you like a particular NFT project, check out how the community behaves on social media. Many times, new NFT projects wind up and leave people with a bag of worthless NFTs. This happens because the surrounding community was in it for the money and not the vision of the project.
Avoid Gas Fees
When you become a part of an NFT whitelist, you get allotted a certain date and time to mint your NFTs. This helps you avoid all the speculative activity around the launch of a new NFT project. Not only can you hold the NFTs for a larger amount of time, but earn the respect of the community for being early. You also helped the project get the traction it’s seen in the present. The more active you are, the better your chances of helping original NFT projects.
The NFT market is hardly a few years old. Yet, judging by its activity, there is no limit to how large it can get in a few years. This is because NFTs and blockchain enable a global 24/7 market for everything. Digital art is the beginning of this revolution. New projects are building the tools we need for a decentralized version of the internet. This, to compete with traditional software architecture and integrate an open financial system.
NFTically is a saas venture that helps creators, brands and artists to create and launch their own NFT marketplaces.