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What is an NFT whitelist and how can you join one?
More and more, NFT creators are using whitelists to reward particular community members by allowing them to mint tokens at a reduced price, before the public, and/or sometimes even for free. What exactly is a whitelist in the world of NFTs, and how do creators benefit from using them?
What is an NFT whitelist?
A whitelist is similar to a VIP list, or a guest list for an event. If youre on it, you get perks. Sometimes its early access. It could also mean you get to buy an NFT at a lower price.
By creating a whitelist, NFT creators choose specific cryptocurrency wallet addresses to allow access to the minting process for their NFTs during a specific window of time.
Some NFT projects are built around communities. As such, whitelisting can reward early supporters or active members, by giving them earlier slots in which to mint NFTs than non-members.
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It can also avoid gas wars . When lots of people try to mint NFTs from the same project at the same time, it drives up transaction prices. Thats the cost of actually carrying out the transaction separate to the cost of buying the NFT itself.
By specifying different times for different buyers, creators can therefore spread out sales over a longer period of time. This is sort of equivalent to setting up a serpentine queuing system outside a shop, or giving customers a time slot during which to make their purchase. It avoids masses of people crowding a place only with NFTs, it’s a virtual place.
How do you get on a whitelist for an NFT sale?
This depends entirely on the project, although there are a few rules of thumb.
Lots of NFT project leaders communicate via Discord. So, to be in on the action, prospective buyers and/or supporters likely benefit from joining the projects Discord server as early as possible. Projects usually advertise their Discord servers via Twitter or other social media platforms.
It is in Discord servers that creators disseminate information about their NFT project, including if theyre using a whitelist information on how to get on it.
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Remember that, to get on an NFT whitelist, the project creator or team of creators have to specifically select you. So if you join a Discord server expecting to be able to sit silently and get on the whitelist, you may be disappointed. Whether or not you make the whitelist might depend on how much you engage with other members of the Discord server.
In Laptop Mags words, most NFT communities operate like pyramid schemes . If you bring x amount of people on board, youre more likely to rise up the ranks yourself.
How do NFT whitelists benefit creators?
Whitelists prevent, or at least soften, gas wars . They also reward early supporters of NFT projects. But of what benefit is that to creators?
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By rewarding those who bring in the most members into the NFT projects Discord server, creators amplify interest in the project. They let would-be buyers do the work for them.
The pyramid scheme attracts more and more members. The more people who are interested in a project, the higher the price of its individual NFTs will be during the public sale and in resales.
If youre reading this and youre a creator, this guide may be of more use to you.
PLEASE NOTE: Our publications do not offer investment advice and nothing in them should be construed as investment advice. The information contained in our publications is not, and should not be read as, an offer or recommendation to buy or sell or a solicitation of an offer or recommendation to buy or sell any securities.
