What Is NFT Whitelisting?

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When NFTs began to take off in early 2021, there was a crazy rush of people seeking to mint NFTs at the outset of a project. This rush prompted users to try to mint their NFTs as soon as a project’s contract for minting became available. In order to get their NFTs before they sold out, folks raised the maximum price they were ready to pay for gas (the more gas you are willing to pay, the faster your transaction will get confirmed).

The upshot was exorbitant minting transaction fees, dubbed the “gas war.” With transaction fees alone ranging in the thousands of dollars, these gas battles were and still can be really epic.

However, as the year progressed and people grew increasingly tired of the gas war, more and more projects began to use a “whitelisting” strategy to launch their NFTs.

Whitelisting and “to be Whitelisted”

 

 

Whitelisting is a phrase used in the information technology/cybersecurity industry to describe a list of “allow” or “safe” items, but it has a different meaning in the NFT world. Whitelisting is the process of obtaining a crypto wallet address accepted for a future NFT mint (also known as a “drop”) in the case of NFTs. Because most NFTs are launched on the Ethereum blockchain, your public Ethereum (ETH) address will be whitelisted.

To be whitelisted, you must follow the process/steps outlined by the NFT project team in order to have your ETH address allowed to mint an NFT at a specific day and time. This date and time for whitelisted addresses are usually set as a time window. Some projects, for example, may allow whitelisted addresses to mint an NFT at any point throughout a 48-hour period.

Whitelisting is used majorly for two purposes:

 

  1. Whitelisting as a Way to Reward Early Adopters

Initiative teams must discover strategies to incentivize early backers of their projects, given the vast number of NFT projects that begin every week. One method to achieve this is to provide early supporters with the opportunity to be added to a whitelist and mint their NFT before the official launch. The whitelist not only assures a space to mint for a supporter, but it may also result in a lower NFT pricing (or even a free NFT).

Supporters are incentivized to stay connected with the project and spread the word to their friends early on in the project’s life cycle by doing so.

If an NFT influencer hears about a project and promotes it to a big audience, this can be very beneficial.

 

  1. Whitelisting to Avoid a Gas War 

 

When the Ethereum blockchain is overburdened, transaction fees can be extremely high. When a popular NFT launches, thousands of individuals try to mint at the same time, the problem becomes significantly worse. The transaction (gas) costs alone can be many times the real mint price of the NFT in such circumstances.

Because people are competing to mint the NFT as rapidly as possible before it sells out, this situation is referred to as a “gas war” (the more gas you are willing to pay, the more likely your transaction will go through before others).

 

Many projects have employed a whitelisting technique to alleviate this difficulty.

By creating a whitelist of supporters ahead of time, you can increase the likelihood of a successful launch.

The Most Important Thing Is To Do Your Research

On a daily basis, a slew of new NFT ventures strives to launch, to the point that the market has become exceedingly saturated. Many collectors are joining the NFT train despite the risk of financial loss. If you want to be on the NFT whitelist, though, you’ll have to devote a significant amount of effort to researching new NFT projects.

You may save time by using services like Airdrop Alert, which gives up-to-date information about promising early NFT ventures. Airdrop Alert provides dependable recommendations on the best projects in a variety of areas, including DeFi, NFTs, and crypto. However, there is a significant disparity between what you pay and what you get with NFTs. 

How to Become a Member of an NFT Whitelist

If you’re a well-known and well-liked influencer, the procedure is straightforward because you’ll either be approached by initiatives or have little difficulty reaching out to the project’s founders. If you’re from the rest of the world, like us, the process for getting whitelisted for a project is often the same:

 

  1. Look for a project that hasn’t gotten off the ground yet.

 

  1. Join their Discord server and start interacting with others.

 

  1. To get whitelisted, follow their guidelines.

 

Finding a project before Launch

Finding pre-launch projects is actually a lot easier than it appears. If you spend a lot of time on Twitter (which you should! ), you’ll come across a lot of new initiatives. Because the vast majority of people are lazy, this does take some time and effort, but it’s usually the most hopeful strategy.

Join the Community of the Project

Once you’ve found a project that interests you, join their Discord, read the announcements, and communicate with the community. Twitter is the major meeting venue for the crypto community, and NFTs are no exception.

Follow instructions given to get whitelisted

If you’re confident in a project and want to be a part of the NFT minting process from the start, it’s time to figure out what the qualifications are for a whitelist slot. You can be asked to just fill up a form, or you might be requested to invite others to the Discord server or promote the project on Twitter. 

When people finally get their whitelist, you can’t help but feel joy for them, especially for a huge buzz project. 

 

In conclusion

Technology is advancing quickly, cryptocurrency is advancing even faster, and NFTs are now advancing at the fastest rate. As everyone hurried to invest in “the next big project,” OpenSea gas fees skyrocketed, and they continue to do so. Most small investors simply cannot afford to spend $200 on a single transaction that may cost more than the NFT. 

To mitigate the impact of high fees, most projects now adopt a whitelist method for their NFT presale. Always remember to conduct your own research.

 

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Disclaimer: The views expressed in The Coin Times are solely those of the authors cited. It does not constitute The Coin Times recommendation to buy, sell, or hold any investment. Before making any financial decisions, it is recommended that you undertake your own research. Use the information supplied at your own risk. For additional information, please see the Disclaimer.

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