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Over the past few years, NFTs have become wildly popular. Investors compete for a piece of the collection these days whenever a new NFT project is launched. Around the time of the project’s launch, this frequently causes chaos and may even result in scams.
Famous NFT projects have developed a new mechanism to make their collections accessible to audiences in light of this. It is known as a whitelist. Let’s see what’s an NFT whitelist and how you can join these exclusive pre-sale lists.
Let’s get started!
What is an NFT Whitelist?
In cybersecurity, the term “whitelisting” refers to the practice of approving a set of IP addresses, email addresses, and apps while rejecting everyone else. It is related to allowing exclusive access to a specific object.
The NFT ecosystem has a Non-Fungible Token allowlist, a proper list of wallet addresses with exclusive minting rights. It ensures the opportunity to mint one or more NFTs before they are planned to be made available to the general public, frequently at a lower cost.
A pre-mint provides community members and early backers an opportunity to mint before the public sale opens, frequently done via a mint pass or an allowlist. A mint pass, as compared to an allowlist, requires payment to mint a specific number of NFTs before the general sale.
Need to have an NFT Whitelist
The reasons listed below will explain why an NFT Whitelist is necessary. Check the points below:
- Giving rewards to early supporters
NFT projects usually take time to develop, so they require a lot of early buzz to create momentum and ensure a successful launch. Social media enables early marketing and community building during the ideation stage when a project is just existing in the brains of its creators. The initial supporters of a project are usually the ones who help in the idea’s growth. And it’s crucial to reward them in order to build goodwill for the project.
- It prevents gas wars.
Since general NFT sales don’t need to be whitelisted, a vast number of concurrent users that are interacting with the smart contract can result in a considerable spike in transaction fees. Users compete to have their minting transactions approved first, which results in increased gas prices and causes what we refer to as “gas wars.”
In contrast, whitelist registration limits the wallet addresses that can mint NFT before the general sale. This implies that network congestion and gas wars are less likely to occur during the sale. Setting a limit on the amount of time NFTs can be issued is one of the best strategies for whitelists to minimize gas price issues. It’s important to remember that the gas price will vary according to the overall traffic volume on the blockchain network. Other minting sales or other outside factors may occasionally impact a whitelist sale. A valuable addition to the whitelisting approach for NFT projects is that it generates discussion and interest around the release, project, and future follow-up releases if there is a high desire to join the whitelist.
- Lowers the rate of scam
Thousands of genuinely interested buyers can hinder a new launch, but spam accounts worsen the issue. Pre-sale requests from fraudulent crypto wallets and bogus accounts are swarming several projects. Even hundreds of accounts can be registered at once by certain malicious attackers. Whitelists prevent this kind of conduct from negatively impacting the minting process.
Mass registrations are often avoided by using an NFT whitelist. Additionally, it prevents spam that comes from non-whitelisted addresses. As a result, the virtual environment becomes cleaner and healthier, letting the NFT project focus on real customers who are more than excited about the tokens being issued.
How does the NFT Whitelist work?
After compiling all the digital wallet addresses, early access to recently minted Non-Fungible Tokens is provided. The first step for a potential buyer is to have their address approved for whitelisting. Most projects check the accounts of the users before putting them on the whitelist because they want their NFTs to be accessible to loyal fans and early backers.
Once a wallet address has been added to the NFT whitelist, the date and time are provided for the token’s minting. Although the time slots for each project vary, many allowlists provide a two-day window. Users will be able to access their accounts at the specified time and mint an NFT as agreed upon after waiting for the specified date.
How can you join an NFT Whitelist?
One can catch the attention of the project’s founders to be added to the whitelist by contributing to it via the project’s Discord server, Twitter account, Telegram group, etc. The basic processes to get whitelisted for NFTs are as follows:
#1 Search for NFT projects before they’re launched.
The majority of NFT projects look for community members who can help spread awareness and reward participants in their early phases. One might look for projects on Twitter, YouTube, and websites to keep up with the newest trends.
#2 Join the Discord server of the NFT project.
Join the project’s Discord server once you’ve made your decision to engage with other participants and contribute to the project’s growth. Before joining the project’s whitelist, additional useful information can be accessed on the server, such as the project’s roadmap, founders’ backgrounds, and most recent announcements.
#3 Follow the guidelines to be added to the whitelist.
From project to project, the application procedure to join a whitelist differs. Apply to join an allowlist by following the directions provided by your chosen project. You must then submit your crypto wallet address, which, if approved, will grant you access to the whitelist after having met the conditions. You’ll be given a time frame to mint your token after being added to the whitelist.
Curtain thoughts
The most anticipated tokens are made available to traders early, thanks to NFT whitelists. By using this straightforward method, you can avoid gas wars and get tokens for a lesser price overall.
There is no better way to increase your potential earnings and immerse yourself more in the realm of Non-Fungible Tokens if you’re serious about investing in NFTs than by joining a whitelist. You can use whitelists to bolster your investment portfolio if you have the correct plan in place and are willing to put in some effort.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
