Prices of non-fungible tokens (NFTs) usually skyrocket significantly during minting. For this reason, some NFT enthusiasts find it difficult to own their favorite digital art. However, it is now possible for them to get exclusive access to newly created NFTs through whitelists. NFT creators use such lists to allow certain people to mint their work before public minting starts, shielding them from fluctuating prices.
In this article, we will discuss in depth how whitelists work and how you can join one.
What is an NFT Whitelist?
In cybersecurity, whitelisting means approving a certain list of applications, email addresses, and IP addresses while rejecting others. In other words, it involves granting special access to a particular object. Similarly, NFT whitelists can be described as lists of wallet addresses that have exclusive minting rights. Meaning owners of these wallets are able to mint NFTs at a lower cost before they are launched publicly.
So often, NFT fans use the phrases ‘whitelist’ and ‘pre-mint’ interchangeably. However, as much as the two involve giving specific individuals early access to NFT minting, the big difference is that to be part of a pre-mint, you need to pay for a mint pass, while it’s totally free to feature in a whitelist.
How Do NFT Whitelists Work?
Every prospective NFT buyer should aim at getting their wallet addresses whitelisted. Once the project creators select their addresses, the buyers are given a specific date for minting the NFTs.
Benefits of NFT Whitelists
Whitelists benefit both NFT creators and collectors. For example, by getting exclusive access, collectors can evade gas wars that occur during public minting. Furthermore, whitelisted wallet addresses mint NFTs at lower prices than those charged in public minting. Besides cheaper prices, collectors may receive free airdrops in case they mint high-value NFTs. For instance, Bored Ape Yacht Club NFT holders were airdropped free Mutant Ape NFTs.
On the other hand, whitelists enable NFT creators to save marketing fees since rewarding true supporters of the project with exclusive access to minting will likely attract new fans, essentially growing the community without incurring high promotion costs.
Drawbacks of NFT Whitelists
Getting whitelisted requires you to be active on the NFT project’s social media pages, which can be time-consuming. Also, there is no guarantee that your wallet address will be selected.
Further, online scammers may launch a phishing attack by luring NFT buyers to click fraud links, which can drain their wallets.
Another drawback is that some NFTs may be illiquid; thus, selling them on NFT marketplaces can be challenging. So it is important to research the project and only invest in it when satisfied with its development plans.
How to Get Whitelisted for NFTs
Here are some ways to feature on NFT whitelists:
Look for NFT Projects Before They Launch
Before launching their projects, NFT creators usually look for individuals who can help create awareness in exchange for free NFTs. You can use platforms such as Rarity.tools to discover such projects.
Join the NFT Project’s Discord Server
After finding the project, the next step is joining ts Discord server so that you can engage with other members. In addition, you will find additional important information, such as the project’s roadmap, the background of its founders, along with latest updates regarding its development. That will help you to determine whether the project is worth your time and investment.
How to Spot an NFT Whitelist Scam
As NFT popularity continues to grow, scammers have devised new ways to rob innocent investors. Therefore, it is vital to be aware of certain red flags to help you avoid being a victim of scams. For example, suppose someone requests a bribe in order to have your wallet address whitelisted. In that case, it is definitely a scam because legit NFT creators don’t control the communities of their projects.
Furthermore, if anyone asks you to share your bank details or private key to join a whitelist, do not provide such information and immediately consider that a red flag.
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