NFT (non-fungible token) is probably not a new phrase to anybody by now. It is a fast growing sub-category of the blockchain.
With our collective memory on the rise of Bitcoin, many people are genuinely afraid of missing out on NFTs incase this becomes the next big thing.
However, there is still a general lack of information on how to actually start ‘NFTing’. Terms like NFT drops, NFT collection, Mint, Whitelist etc. are now common place in the community, but for outsiders, they are completely foreign and don’t make much sense.
In this article, we’ll examine the meaning of NFT whitelist, and answer some pertinent questions on the subject.
What does NFT Whitelist Mean?
One may jog his way through the dictionary and develop an adequate meaning for the term “whitelist.”
However, the phrase may vary in details depending on the discipline you wish to associate it with.
Whitelist, in relation to the blockchain and NFTs, refers to being accepted on an initial list of people who will get early and guaranteed access to an NFT mint on a specific date.
Popular NFT collections often have a higher demand than the supply, which is exactly why the prices keep going up.
To avoid the commotion and the competition once the NFTs are released, you can get yourself on a whitelist, which means you will have an opportunity to buy the NFTs before they are released to the general public.
It also means you will be protected from potential higher prices once the NFTs hit the marketplaces.
Why is it called whitelisting?
As mentioned, whitelisting is adding your cryptocurrency wallet address to a list of addresses that have unique minting capabilities.
As with many terms in the NFT and crypto space, whitelist is an English term that simply means a list of people/things that have been accepted for something, or have been granted a particular privilege.
In this case, the privilege is the early access to an NFT project, which protects you from high prices, as well as guarantees you a piece of the action, particularly in high-demand projects.
What are the Reasons for Whitelisting?
1. To reward early and loyal supporters
The NFT ecosystem is constantly expanding due to the increased number of NFT projects being launched.
People on a whitelist get guaranteed NFTs at a fixed price. This means that in a project with high demand, they don’t have to worry about missing out.
2. To prevent a gas war
Gas is necessary for transactions to take place. If many individuals engage in treasonous behavior at the same time, gas wars will erupt, resulting in increased costs.
To minimize gas wars, the minting period for the whitelist is usually set at a specified time, and only involves a few people.
Benefits of being on an NFT Whitelist
1. Guaranteed mint access
NFTs have given many individuals opportunities they would not have had otherwise. You will be kept out of the minting process if a project has already sold out until you are whitelisted.
2. You get the NFT for a cheap ‘early bird’ price
Some NFT initiatives allow whitelists to acquire NFTs at a lower rate than the general selling price.
However, note that not all projects will adhere to the same criteria and that many will have pre-sale and public sale costs.
How To Get on an NFT Whitelist
1. Find a promising NFT project Early and before launch
To be included in an NFT Whitelist, you must first discover a fresh new project or a pre-launched project. Websites like rarity tools may assist you in determining which projects are available.
2. Join the project’s Discord
You’ll probably need to join their Discord group after you’ve decided on a project that you want to rip profits from.
Discord is the primary means of communication in the NFT community. When you join the Discord community, look for instructions on becoming whitelisted under the “announcements” area or ask other members of the group.
3. Meet the eligibility requirements
Each project will have its guidelines for becoming whitelisted, so do what you’re comfortable with. You will be whitelisted if you fulfill all of the requirements.
4. Be active in the new community
Most initiatives provide supporters interested in the project and bring value a seat on the whitelist.
You may express your support for the initiative by tweeting, retweeting, and talking about it on social media. Be cautious not to break the community’s rules.
Can You Lose Money Minting a Whitelisted NFT?
Minting an NFT does not mean that you will make a profit. In other words, we simply mean that the NFT may be purchased and sold, but there is no assurance that you will make money while doing so.
For most popular projects however, the price almost always goes up after the public release.
Is NFT Whitelist a Scam?
It’s a fraud if you’re asked to buy a spot on a whitelist NFT project as a general rule. Whitelists are handed out to thank people who are dedicated to the project’s community, and they usually are not for sale.