Crypto-based scams are constantly sweeping the nonfungible token (NFT) space; therefore, staying updated is the most significant way to prevent both new and existing NFT scams. Other than fraud, intense rivalry for newly minted NFTs may cause prices to rise and transaction fees to skyrocket, making them unaffordable for early supporters.
Nonetheless, these issues have been solved by NFT providers by establishing whitelists or allowlists, giving special privileges and access to a newly minted nonfungible token. Before public minting begins, nonfungible token projects employ allowlists to restrict who can mint NFTs. For example, one can mint NFTs without being concerned about gas wars if they are on the whitelist.
This article will discuss the NFT whitelisting concept and process, why NFT whitelists are used, and how to get on an NFT whitelist.
What is an NFT whitelist?
Whitelisting is a concept used in cybersecurity that refers to approving a list of IP addresses, email addresses and applications while rejecting everyone else. That said, it relates to granting special rights and access to a specific object.
In the NFT space, nonfungible token allowlists are a list of wallet addresses with exclusive minting rights, which ensures the ability to mint one or more NFTs before their scheduled release to the general public, often at a lower cost.
Related: How do you assess the value of an NFT?
A pre-mint, often carried out via a mint pass or an allowlist, gives community members and early backers a chance to the mint before the public sale opens. However, the difference between a mint pass and an allowlist is that a mint pass costs money to mint a certain amount of NFTs ahead of the general sale.
How do NFT whitelists work?
After compiling digital wallet addresses, early access to newly minted nonfungible tokens is given. Getting your address approved for whitelisting is the first thing you need to do as a prospective buyer. Most projects want their NFTs accessible to true fans and early backers, and they evaluate the users’ accounts before adding them to the whitelist.
Related: Nonfungible tokens: How to get started using NFTs
Selected wallet addresses are given a date and time for minting a new token once it has been added to the NFT whitelist. Each project has a different time slot length; however, many allowlists offer a two-day window. Users must wait for the appointed date, and they will be able to access their account at the designated time and mint an NFT as agreed upon.
Benefits of NFT whitelists
Whitelists offer many advantages to investors, collectors and project creators. For instance, allowing devoted fans to mint NFTs before the public can avoid a gas war. In addition, being on the whitelist typically results in a lower mint price than the public mint price.
This means that users on the whitelist will have a free time slot to complete their purchase, and they can spend additional money on actual NFT purchases by saving on gas fees. Furthermore, collectors may be rewarded with airdrops if they are able to mint a high-value project NFT. For instance, holders of the Bored Ape Yacht Club received free Mutant Ape NFTs, allowing existing users to mint new apes for free.
Similarly, project creators save upfront marketing fees and benefit from the early backers’ promotion, who are financially incentivized to remain active in the project and attract new supporters. Additionally, project creators can stop spam from non-whitelisted addresses by creating whitelisted users, which is essential, as shady accounts may raise gas prices and reduce network performance.
Drawbacks of NFT whitelists
Getting onto a whitelist is time-consuming, as it requires consistent engagement on the project’s Discord server and other social media pages. Still, one may not end up on the whitelist if the project fails to gain traction.
Moreover, scammers may conduct a phishing attack and entice investors to click on random links. As a result, users should take caution and only communicate with legitimate project representatives.
In addition, unpopular NFTs may end up being illiquid assets that are challenging to sell on the secondary market. So, always do your own research before minting nonfungible tokens and only put up money if you are satisfied with the project’s future.
How to get whitelisted for NFTs?
By contributing to a project via its Discord server, Twitter, Telegram group, etc., one can gain the attention of the project’s founders to get onto the whitelist. Here are the basic steps to get whitelisted for NFTs:
Look for an NFT project before it launches
In their early stages, the majority of NFT initiatives seeks community members who can aid in raising awareness and reward participants in return. One can search for projects on Twitter and YouTube or use platforms like Rarity.tools to stay up to date with the latest trends.
Join the NFT project’s Discord server
After choosing a project, join its Discord server to interact with other members of that project and contribute to its development. Additional helpful information, such as the background of the project’s founders, roadmap and latest announcements, can be found on the server, which can be used to assess the project’s credibility before joining the whitelist.
Follow the instructions to get whitelisted
The application process to join a whitelist varies from project to project. Follow the instructions by your chosen project to apply to join an allowlist. Once you’ve fulfilled the prerequisites, you’ll need to provide your cryptocurrency wallet address, which, if accepted, will give you access to the whitelist. After being added to the whitelist, you will be given a time slot to mint your token.
How to get whitelisted on Binance NFT
As long as they satisfy the NFT or BNB requirements — e.g., maintain a certain amount of BNB holdings — to commit their tokens toward the sale, customers can have exclusive access to the most recent nonfungible token sales using Binance’s NFT Subscription Mechanism.
Users have the opportunity to purchase NFTs during the sale with participation tickets. The likelihood of your tickets being chosen increases as you subscribe to more tickets. In addition, each user has a subscription cap, and the final NFT will be allocated impartially.
Preparation, Subscription, Calculation and Distribution are the four stages of the Subscription Mechanism process. They are all essential to ensuring that participants have an equal chance in the sale. These phases are explained below:
The steps to participate in the Binance NFT sale through the Subscription Mechanism are listed below:
- Go to the Binance NFT web page after logging in to your Binance account.
- To participate in the NFT sale, click on the banner.
- You will be taken to the subscription page, where you can view information about the project, including the total number of NFTs that have been issued, the number of tickets that can be purchased by each user, the cost of the participation tickets, subscription cap for Participation Tickets, and the subscription countdown.
- Fulfill the required prerequisites determined by each sale.
- By selecting “Subscribe for Ticket(s),” one can enter the number of participation tickets they want to purchase.
- Users can track the progress of their NFT purchase once the winning tickets have been chosen. Successful buyers will discover their nonfungible tokens on the Binance NFT User Center, whereas users with unsuccessful purchases will get a refund from Binance.
How to spot an NFT whitelist scam?
Since the NFT industry is still in its infancy, scammers use fraudulent ways to wipe out funds from victims’ wallets. Therefore, being informed of certain warning signs helps stay protected. As mentioned, getting whitelisted involves a few basic steps. However, if a project representative or a random user asks for a bribe to get your name on the whitelist, it is a scam because genuine nonfungible token creators do not control their community.
Moreover, if you are asked to share your private key or bank details to get onto the allowlist, consider it a red flag and avoid sharing such information. In addition, if you have received an email, text or call from an unverified source about your selection for the whitelist, conduct due diligence on the project before committing funds. Trust only official links posted to the project’s Twitter account or Telegram or Discord channels.
Is it worth trying to get on an NFT whitelist?
Getting whitelisted involves a lot of effort, including investigating NFT presales, continuous contribution to the NFT projects and engagement with the project’s team members. However, one may still fail to get whitelisted, as each project or platform has specific selection criteria. For instance, users must meet Binance’s BNB and NFT prerequisites to participate in the nonfungible token sales using Binance’s NFT Subscription Mechanism.
Regardless, the opportunity to gain early access to intriguing initiatives is typically worthwhile, as one can buy NFTs for a low price and avoid costly gas wars and expensive secondary market trades. Furthermore, users can utilize whitelists to bolster their investment portfolio if they have the proper plan and are willing to put in some effort.