NFT projects need early investors to take off and gain traction. For that, they use whitelists. Let’s find out what whitelists are and whether or not you should bother.
A whitelist is a list of people who will be the first to buy newly-listed coins or tokens at a lower price. In NFTs, whitelists can also be ‘tickets’ for cryptocurrency wallets to mint new tokens.
Getting whitelisted takes active steps, and in this article, we’ll tell you how to go about that. You can start by subscribing to social networks of the project, rate posts, or share news on your social media.
The system is very similar to that of an airdrop. The difference is that by taking part in an airdrop, you get the coins or tokens per se, and a whitelist is a way to secure yourself a place among the first to buy or mint new tokens at a sweet price.
Why do whitelists exist?
Most new and promising NFT projects generate a lot of hype. More often than not, there are too many people wanting to be the first to buy the tokens first, and the number of those is, quite obviously, limited. As a Whitelist is made, the lucky few are selected from those who applied.
On average, they are chosen at random but sometimes, whitelist participants can be picked after winning some competitions (the best comment in social networks, the most retweets, etc.) or by other parameters, such as merits, experience, number of followers, etc.
On the technical side of things, whitelists also serve a good cause. In tech terms, a whitelist is a pre-issued approval for a crypto wallet to mint a specific token (or a number thereof) during a set time window. If you’ve been around crypto for some time, you’ve probably heard of ‘gas wars’ — a state of affairs when too many people are trying to mint NFTs all at once, thus blowing transaction prices out of any reasonable proportion.
Whitelists help mitigate that by assigning each pre-approved wallet for a specific time window when it’s allowed to mint the tokes, thus nipping the problem of network congestion right in the bud.
How to get whitelisted for an NFT project?
First, you need to find a project. This process is entirely subjective and boils down to your ability to DYOR and google. You can try researching the field at https://rarity.tools/upcoming or follow some NFT influencers to be among the first to find out about different upcoming projects.
To get on an NFT Whitelist, you will have to obtain a minimum set of accounts on Twitter, Discord, and Telegram. Email can also be helpful. You will also need a crypto wallet. For beginners, the best starting point will be a wallet on Binance Smart Chain (Trust Wallet) or Ethereum (MetaMask). There are other wallets with more favorable and attractive functions, but these are the ones that are used most commonly.
Next, you have to find the projects. The easiest way to find out about them is on special resources about airdrops — websites, social network groups, Telegram channels, Discord servers, etc.
Projects may have their own requirements for new participants. You may only be asked to fill out a short form, but you will most likely have to complete several subscriptions and other activities to get on the list. At this stage, carefully study the terms for whitelisting so that you don’t miss anything!
Even if you do meet the terms, there is no guarantee that you will end up on the whitelist. Therefore, some die-hard fans tend to abuse the system by creating several dozen accounts, crypto wallets, and spam applications from all of them at once. This way, they devote several hours a day to each project. As underhanded as it may seem, this method increases your chances of getting into the coveted whitelist.
How to make money on NFT Whitelists?
There are two ways to make money on whitelists.
- The simplest and most obvious: you get on the whitelist, buy a few coins at a bargain price, and then sell them for more. Usually, the profit covers the cost of buying coins. And there are still a few tens of dollars left. For example, participants in the whitelist of the BSCLaunch project were able to buy coins for $0.08 and sell them for $10.
- Sell the whitelist itself. Yup, lucky tickets can be bought and sold. And it is much easier for many investors to buy several spots on a whitelist than to sit for hours completing tasks from a dozen different accounts. Buyers of such places are often found on Telegram, Reddit, Discord, and other social platforms. As a seller, you won’t be required to invest anything extra — you just follow the steps to get into the whitelist and then sell your access.
What are the risks?
Not all NFT projects will take off. Getting whitelisted does not guarantee that you will be able to sell your tokens and return at least part of the funds. Therefore, many investors apply for several projects at once so that at least one or two of them can cover the costs and make up for the time spent.
NFT whitelists are also susceptible to fraud — be sure to DYOR on both the project and the buyer/seller of your whitelist spot.