Yesterday, Justin Bieber bought a Bored Ape for 500 ETH. The days before we saw other celebrities and rappers get new PFPs of Punks, Apes, or Doodles. NFTs continue to take over many sectors as more digital art collectors are getting in on the action to bag huge returns. As a result, getting on the whitelist for prospective NFT projects is a persuasive argument for collectors. It allows them to hold an NFT before it becomes valuable enough for others to profitably sell it.
According to Chainanalysis, collectors who obtain NFT whitelist spots stand to benefit 75.7% during minting. When compared to the modest 20.8% chosen by those who enter after the sell-out, it is a huge profit margin. Every collector’s ambition is now to be a part of an NFT project that has massive potential. Speaking of that, getting on an NFT whitelist is the best way to join a project as early as possible.
Whitelisting: A Better Solution to NFT Market Saturation?
NFTs are all over the place and have taken the industry by storm. This space is now a multibillion-dollar industry, and the likes of BAYC and CryptoPunks lead the PFP club. However, not everything is as it seems in this world, and things are only getting worse. Due to the volume of projects in the market, it has become challenging to search for promising NFT projects.
Even popular projects sell out in minutes, thus limiting latecomers from benefiting from it. And when everyone attempts to buy at the same time, the gas fees also soar to insane levels. In fact, there were instances when the gas itself was higher than the mint price of the NFT, which priced out most people. This network congestion and fierce rivalry results in a blockchain phenomenon known as gas wars.
However, there are solutions emerging, and one of the most effective remedies is the NFT whitelist. This approach of securing a minting space and lowering NFT cost (or even a free NFT) for early backers is proving to be the ideal solution for newer NFT projects.
It’s a pretty straightforward process to get, and here are a few pointers to get you going:
- Be part of giveaways in a community
- Try participating in giveaways for being in NFT DAOs
- Be super active in a community/Discord
- Actively participating in giveaways on Twitter
- Being super early to the project and contributing to their growth
- Receiving raffles for being an early supporter of a community
Here’s proof that our friend @Cbow2x won a raffle for a popular forthcoming NFT mint called the HapeBeast. This shows that engaging in Discord communities pays extremely well.
What Should You Look for in an NFT Collectible?
You want an NFT that is one-of-a-kind while still being aesthetically beautiful enough to be shared extensively on social media as a meme. Unlike the traditional sense, where the intricacy of the work bears greater weight, this is not the case in the NFT universe.
Similarly, you should look for NFTs that convey the implicit message that they will be available to a select group of people. The Bored Ape Yacht Club initiative, for example, produced just 10,000 NFTs for its members. In the middle of such uniqueness, you want to feel like you’re a part of an elite member’s club. Ultimately, the value of an NFT is determined by how uncommon and exclusive it is to the owner.
Doing Your Research is the Key
Countless NFT ventures are attempting to debut on a daily basis, to the point that the market is becoming extremely saturated. Despite the potential of financial loss, many collectors are boarding the NFT train. However, if you want to be on the NFT whitelist, you will need to invest a large amount of time researching new NFT projects.
You may save time by using platforms like Airdrop Alert, which provides up-to-date information about early NFT projects with high potential. Airdrop Alert offers trustworthy recommendations on the finest projects in several sectors such as DeFi, NFTs, and crypto.
However, it is true that the difference between what you spend and what you get with NFTs is enormous. And you want to maximize your possible return on investment. So, before going to the trouble of obtaining a whitelist slot, it is also a good idea to look into a project for any red flags.
And, because NFTs are still a new asset class with high returns, there may be many scammers. As a result, keep this in mind before investing your money in NFTs. You don’t want to spend the majority of your time completing a project’s criteria just to discover that the project was a sham.
Check out CryptoRut’s video on the subject of Whitelists.