WHITELIST.
Have you heard about Whitelist? Fondly shorten as WL by NFT enthusiasts.
Let’s break it down for you.
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What is NFT WHITELIST?
How do you feel when you get a golden ticket into a function? Cool yeah? That’s exactly what NFT Whitelist is. It’s a golden ticket that gives you access to buy into a good or your favourite NFT projects at a cheaper and less competitive manner.
This literally mean you can buy (mint) this NFT project before anyone else without a Whitelist gets it. You are quick to sell (list) it for profit first on the secondary marketplace before anyone else does.
However having a NFT Whitelist doesn’t still give you guarantee that you will get this NFT early. A few problem is attached to it.
- BOT/HUMAN WAR
It’s not longer hidden that people currently use Bot to buy off NFT faster than people do during minting. The NFT space is constantly growing, and good projects attract a lot of interested buyers who rush to mint as soon as the project drops. There is a high chance that someone else will get their hands on an NFT before you do.
2. GAS FEE WAR
A “gas fee” is basically a transaction fee in the NFT space. The catch is that the more gas you’re willing to pay, the faster your transaction will be confirmed. With so much competition to mint, a lot of people tend to increase the amount they’re willing to pay for gas fee. By doing this, it attract competition on the network which leads to “gas fee wars” resulting in ridiculously high transaction fees going for thousands of dollars. This war is mostly common on the Ethereum blockchain, chains like Solana, Avalanche are way cheaper.
To solve these issues, NFT projects have introduced whitelist strategies.
BENEFIT OF HAVING A NFT WHITELIST
1. You are guaranteed to a buy (mint) the project early before those without WL buys on the secondary NFT Marketplace.
Note: Marketplaces are platforms that allows buying and selling of digital arts or NFTs
2. Early bird access: Some projects rewards their early users with their NFT, which worth a fortune later when they list on the secondary market. Thus, gaining quick access is greatly beneficial.
3. You tend to avoid the great gas fee wars. When you are added to the Whitelist of any NFT project, you can choose a specific time you’d like to mint your NFT within the window provided. This allows the transactions to be spaced out, which means less competition, less traffic on the network, and low gas fees.
For example, let’s say an NFT project named Bored Monkeys launched at a mint price of 0.5 ETH excluding gas fees and jumped to a floor price of 2 ETH on the secondary market like OpenSea or LooksRare within 48 hours of launch. So, a person who got hold of any NFT from that project at mint must have 3x’ed their investment within 2 days.
NFT WL are the most sought after things right now in the NFT space. It’s difficult to get because of the massive competition around it.
POSSIBLE WAYS OF GET A PROJECT WHITELIST.
- Find a project early.
A whitelist only works if the project has not been launched. You must find a good project before its drop and before it accumulates a mass following. You can find upcoming projects on RarityTools to find upcoming projects or follow NFT experts/influencers on Twitter or subscribe to their YouTube channel to get good insights of next alpha or bluechip.
2. Join the project’s Discord group.
Discord is where most NFT project’s activity takes place ie. Introduction to the founding team, project’s road map, major announcements, giveaways, instructions to getting on the whitelist, etc. Links to the Discord group can usually be found on a project’s Twitter bio.
3. Follow rules to get Whitelist role.
Every project gives you a task to do, most time this task helps the project gain traction and awareness.
Task could be:
- fan art.
- inviting your friend to their discord group.
- engaging in quality conversations in the discord group.
- participating in giveaway, you can be lucky.
- get in their discord early.
Voila you now know what a NFT Whitelist really means.
NOTE: This is for educational purposes only. This isn’t a financial advice, DYOR and invest smartly.
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