The rise of Non-Fungible Tokens (NFT) has changed the landscape of digital transactions where users can transfer the ownership of unique digital assets including art, virtual plots, and other collectibles. The increasing popularity of NFTs has created rivalry among collectors and an increase in the rate of scams and hacks within the platform. To solve the issue, NFT providers including creators and the marketplace have introduced the concept of NFT Whitelist.
This article covers everything you need to know about NFT whitelisting, including its importance, how to join, etc.
Table of Content
- What is an NFT Whitelist?
- Why is NFT Whitelisting Important?
- How NFT Whitelisting Works?
- How to Join an NFT Whitelist?
- Limitations of NFT Whitelists
What is an NFT Whitelist?
Whitelisting is the process of approving access and special rights to specific objects, such as email addresses, IP addresses, and applications while rejecting the rest. In the NFT platform, whitelisting involves the approval of wallet addresses with exclusive minting rights allowing NFT community members to register their interest in the private sale.
Why is NFT Whitelisting Important?
NFTs are built upon strong communities and can comprise more than a thousand members before the launch. NFTs reserve a certain fraction of the total supply for community members, aiming to increase their interest and engagement in the community.
Since the NFT projects are limited in numbers, the demand can outweigh the total supply, preventing some from enjoying the NFT service. As the community is the sole of NFT platforms, rewarding them with exclusive offers is important for the well-being of NFTs.
The Non-Fungible Tokens (NFT) offer its community members exclusive access to private sales. All members are asked to register their interest and then selected wallet addresses are whitelisted for participating in the private sale.
Apart from rewarding early adopters, whitelisting also prevents a surge in gas fees and protects the platform from scams. Since the whitelisting restricts access for all, the gas fee surge is controlled. The accounts are verified to get whitelisted, so the fake accounts are not entered into the white list, preventing scams.
How Does NFT Whitelist Work?
Most NFT platforms release a whitelist form in which the community members have to register their interest in participating in private sales. After compiling the digital wallet addresses, community members are given early access to Non-Fungible Tokens. The access is given only after the accounts are approved, eliminating the chances of scams.
How to Join an NFT Whitelist?
To get whitelisted users have to gain the attention of the NFT founders, this is mainly done by contributing to the project through the Discord server, Twitter account, or Telegram group.
The basic steps to get whitelisted in NFTs are as follows;
1. Find a Pre-Launched NFT Platform
Most of the NFTs look for community members to spread awareness of the platform across people and offer token rewards in return. New and pre-launched NFT projects can be found on Twitter, YouTube, and certain websites.
2. Become a Community Member
Once you find an NFT of your choice, follow their account on Telegram and join the community on Telegram and Discord servers. Before joining the community, check the platform’s background, and roadmap, and analyze its recent announcements.
After joining the community, participate in their AMA sessions and discussions and contribute to the project. Giving feedback and opinions during the sessions is a strategy to gain the attention of the founders and increase the chance of getting whitelisted.
3. Fill Out The Whitelist Form (in most cases)
Users interested in getting whitelisted must fill out a whitelist form by filling in details like wallet address, email address, and the reason for joining the private sale.
4. Perform Required Tasks To Get Whitelisted
Some projects require performing certain tasks and activities to get into the whitelist. The tasks include retweeting a particular tweet, creating memes, etc. The given tasks must be completed before the deadline to increase the chance of adding to the whitelist.
5. Share The Screenshot
Once the given tasks are completed, share the screenshot of the completed task with the NFT. The screenshot can be shared through the Discord server or Telegram.
Limitations of NFT Whitelist
NFT whitelisting is a time-consuming process. A user has to follow the platform and become a community member, perform all the tasks, and gain the founder’s attention, all these tasks take time and even after performing all the tasks, there is no surety of getting whitelisted.
The rising phishing attacks can lead users to fake links and fall into their traps, making it mandatory to verify the authenticity of the NFT platform.
The increasing number of NFT platforms benefits users. However, this includes both legitimate and illegitimate ones. Since whitelisting is done on pre-launched and new NFT platforms checking their reliability and reviews can be challenging. Always do individual research before buying NFT tokens.
Final Thoughts
NFT whitelisting is a strategic approach from NFT founders to increase their project visibility and growth. It allows the platform to reward their community members and enhance their engagement. It also prevents scams and controls the surge of gas fees.
For investors, choosing a reliable NFT platform can be a cumbersome process sometimes and the time taken to complete the process of whitelisting and even then no guarantee of getting into the whitelist makes many reluctant to use the advantage.