What is an NFT whitelist and how can you join one?

Having early access to the newly launched NFT collection is what every NFT enthusiast dreams of. All NFT traders want to buy their favorite NFT at a low rate and sell it high, but fierce competition and high demands push prices and gas fees out of their grasp.
Keeping these issues under consideration, renowned NFT projects have launched a new system called Whitelisting to prevent the “gas war” during the minting process. Here we will discuss what exactly NFT whitelisting is and how you can be the one to mint on the pre-sale list.

What is the NFT Whitelist?

In the cybersecurity and IT world, Whitelist means the list of individuals who are given special access to something and are considered safe. However, in the NFT world, this word stands for something more specific.
An NFT whitelist is a database of IP addresses that are given the special privilege of minting the NFTs at a certain date and time before their public release.
Prior to the public launch of an NFT collection, some individuals who have already submitted their IP addresses to the project teams are given the privilege to mint NFTs. Being on the whitelist enables the users to avoid high secondary prices and transaction fees.

NFT Drop

The creators of a specific NFT collection announce the exact date and time of its pre-release using the Drop feature. In these NFT drops, the project teams announce the launchpad, their price, and the time for their community to mark their calendars. There are certain websites like NFT Calendar that have prebuilt calendars for these impending drops and might send you a reminder so you never miss minting your dream NFT.

NFTs are going to appear for sale on an NFT marketplace anyway so why is there a rush for the NFT drops exactly?
Missing an NFT's drop is something you might not want as an NFT enthusiast. NFT drops are often limited in quantity and missing one means you have lost the opportunity to own a unique NFT. Moreover, it may result in a financial loss. If you missed out on purchasing the NFT from its original creators, you may have to pay a higher price when purchasing from a secondary source.

Why do we need NFT Whitelist?

I. Prevent Gas War

Due to the high demand for unique NFTs, there is intense competition among buyers as soon as they are released. As transaction fees on the blockchain are proportional to the demand, both prices and gas fees skyrocket. Getting yourself whitelisted prior to the launch of these projects may be financially a better option for you.

II. Avoid Fierce Competition

Getting whitelisted not only saves gas fees but also keeps speculators at bay, thus limiting the competition. Popular NFTs are exhausted as soon as they are minted. This fierce competition often leaves pure NFT fans deprived of their favorite NFTs. They are left with no choice but to buy these NFTs from the secondary market at higher prices. This list ensures that only whitelisted individuals have access to these valuable NFTs.

III. Decreased Fraud Risk

Some bad actors often try to inflate the prices of NFTs by repeatedly buying and selling their assets, thus resulting in the manipulation of the market. As the whitelisted users can mint NFTs before the public launch, they find themselves safe from these fraudulent activities.

How do you get whitelisted?

Getting yourself whitelisted is not always easy, but if you follow certain steps, there are better chances of succeeding. In this section, we will go over how to get your name on this whitelist.

Find a Project before the launch

The first step to getting whitelisted is to find projects before the launch, or existing NFT projects which are going to launch a new collection. You will have to make an extra effort to find these projects because they are not as well promoted as the existing ones.

Do your research

The NFT world, like any other digital space, is vulnerable to spam and fraud. As an investor, you must identify the projects in which you wish to invest and become acquainted with them. You can also try out some online platforms like Rarity tools that help to find pre-launch projects to invest in.

Follow social media

Following and checking projects' social media it regularly keeps you in touch with the development of new projects in the early stages. You will also learn many important things about investing in NFT projects.

Join the discord server

Discord is an online social media platform where people join with each other through “servers”. Many NFT projects have their communities on discord where creators discuss recent developments, upcoming NFT collections, project roadmaps, and all the latest announcements.

Follow the Instructions

Getting an NFT whitelist isn’t as easy as just clicking “join now”. You have to follow certain instructions and rules to get a hand on pre-sale items.
Whitelisting requirements differ from project to project. In some projects, you just have to fill out a form. Other projects may ask you to perform different tasks like following them on Twitter, subscribing to their YouTube channels, inviting other members, etc.

You must adhere to all of the project's requirements and instructions. After carefully following all of the steps, you must provide your IP address to the project's team in order to be whitelisted. Once your request is approved, you will be officially whitelisted for the upcoming NFT collection.

Cautions against NFT Whitelisting

While whitelisting for NFT projects can give you early access to pre-sale items, there are some cautions to keep in mind too.

Scammers

To defraud people, some scammers may create fake projects and promote them as legitimate NFT projects. Before investing your money in any project, you should conduct your own research to ensure its legitimacy.

Lack of guarantee

Being whitelisted does not always ensure that you will be able to purchase NFTs. If a unique NFT is limited in quantity, there are chances that you may miss it despite being whitelisted.

Volatility

As NFT prices keep fluctuating, the price you pay for a whitelisted NFT may not reflect its true worth or value in the future. It is important to keep volatility in mind while making the investment decision in any NFT project.

Regulation Problems

The NFT world is highly unregulated, and there are no specific investor safeguards. As a result, it is critical to remain cautious before investing in any NFT project.

Conclusion

Overall, whitelisting for an NFT project is worthwhile because it enables you to mint pre-launched NFT collections, allowing you to buy low and sell high to make a profit. However, before making any investment decision, you should keep certain precautions in mind and conduct your own research.