Crypto-based scams are constantly sweeping the non-fungible token (NFT) space; Therefore, staying informed is the most important way to prevent new and existing NFT scams. Other than fraud, intense competition with newly minted NFTs can lead to higher prices and higher transaction fees, making them unaffordable for early backers.
However, these problems have been solved by NFT providers by creating whitelists or allowlists, granting special privileges and access to a newly minted non-fungible token. Before public minting begins, immutable token projects use whitelists to restrict who can issue NFTs. For example, one can withdraw NFTs without worrying about gas wars if they are whitelisted.
This article will discuss the concept and process of NFT whitelisting, why NFT whitelists are used, and how to get an NFT whitelist.
What is an NFT whitelist?
Whitelisting is a concept used in cybersecurity that refers to the approval of a list of IP addresses, email addresses, and applications while denying everyone else. However, it is about granting special rights and access to a specific object.
In the NFT space, a list of immutable tokens is a list of wallet addresses with exclusive minting rights, ensuring the ability to mint one or more NFTs prior to their scheduled release to the public, often at a lower cost.
Related: How Do You Evaluate an NFT’s Value?
Pre-minting is often done by mint card or allow list, giving community members and early backers a chance to mint before the public sale begins. However, the difference between a mint card and a allowed list is that a mint card costs money to mint a certain amount of NFTs before a public sale.
How do NFT whitelists work?
After pooling digital wallet addresses, early access to newly minted non-fungible tokens is granted. Getting approval to whitelist your address is the first thing you need to do as a potential buyer. Most projects want access to their NFTs for their true fans and early backers, and they rate user accounts before adding them to a whitelist.
Related: Non-Fungible Tokens: How to Get Started with NFTs
Selected wallet addresses are given the date and time to mint a new token once it has been added to the NFT whitelist. Each project has a different length of time; However, many allowlists offer a two-day window. Users must wait for the specified date, and they will be able to access their account at the specified time and mint the NFT as agreed.
Benefits of NFT Whitelists
Whitelists provide many benefits to investors, collectors, and project creators. For example, allowing loyal fans to make NFTs before the public can avoid a gas war. In addition, being on the whitelist usually results in a lower price for the mint than for a general mint.
This means that whitelisted users will have free time to complete their purchase, and can spend extra money on physical NFT purchases by saving gas fees. Furthermore, collectors may be rewarded with airdrops if they are able to mint a high value NFT project. Bored Ape Yacht Club holders, for example, have earned Mutant Ape NFTs, allowing existing users to craft new apes for free.
Likewise, project creators save upfront marketing fees and benefit from the promotion of early backers, who are financially incentivized to stay active in the project and attract new backers. In addition, project creators can stop spam from non-whitelisted addresses by creating whitelisted users, which is necessary, because suspicious accounts may raise gas prices and reduce network performance.
Disadvantages of NFT Whitelists
Whitelisting is time consuming, as it requires consistent sharing on the project’s Discord server and other social media pages. However, an individual may not end up on the whitelist if the project fails to gain momentum.
Furthermore, scammers may perform a phishing attack and entice investors to click on random links. As a result, users should be careful and communicate only with legitimate representatives of the project.
In addition, unpopular junk funds may end up becoming illiquid assets that are difficult to sell on the secondary market. Therefore, always do your research before minting non-fungible tokens, and only put money in if you are satisfied with the future of the project.
How do you get whitelisted for NFTs?
By contributing to a project via Discord server, Twitter, Telegram group, etc., an individual can get the attention of the project’s founders to gain access to the whitelist. Here are the basic steps to get a whitelist of NFTs:
Research an NFT project before launching it
In its early stages, the majority of NFT initiatives seek community members who can help raise awareness and reward participants in return. One can search for projects on Twitter and YouTube or use platforms like Rarity.tools to keep up with the latest trends.