Cryptocurrency-based scams are constantly spreading through the non-fungible token (NFT) space; Thus, staying up to date is the most significant way to prevent both new and existing NFT scams. Aside from fraud, the intense rivalry over newly minted NFTs can cause prices to rise and transaction fees to skyrocket, making them unaffordable to early adopters.
NFT providers have solved these problems by establishing whitelists or allowed lists, which grant special privileges and access to newly minted NFTs.. Before public minting begins, non-fungible token projects employ allowlists to restrict who can mint NFTs. For example, one can mint NFTs without worrying about gas wars if whitelisted.
This article will cover the concept and process of NFT whitelisting, why they are used and how to get on them.
What is an NFT whitelist?
Whitelists are a concept used in cybersecurity that refers to the approval of a list of IP addresses, email addresses and applications, rejecting all others.. In other words, it refers to granting special rights and access to a specific object.
In the NFT space, non-fungible token allowlists are a list of addresses of wallets with exclusive minting rights, ensuring the ability to mint one or more NFTs prior to their scheduled release to the general publicoften at a lower cost.
Early minting, often via a mint pass or allowlist, offers community members and early backers the opportunity to access mintage 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 NFT before the sale generateshe.
How do NFT whitelists work?
Once digital wallet addresses are collected, early access is given to newly minted non-fungible tokens. The first thing a prospective buyer should do is get their address approved for whitelisting. Most projects want their NFTs to be accessible to true fans and early backers, and they test user accounts before whitelisting them..
Selected wallet addresses are given a date and time to mint a new token once it has been added to the NFT whitelist. Each project has a different time slot duration; however, many whitelists offer a two-day window. Users must wait for the designated date, and they will be able to access their account at the designated time and mint an NFT as agreed..
Advantages of NFT whitelists
Whitelists offer many advantages to investors, collectors and project creators. For example, allowing devoted fans to mint NFTs before the public can prevent a gas war. Besides, being whitelisted usually results in a lower mintage price than the public mintage price.
This means that Whitelisted users will have a free time slot to complete their purchase, and will be able to spend additional money on the actual NFT purchase by saving gas costs. Besides, collectors can be rewarded with airdrops if they manage to mint a high value project NFT. For example, Bored Ape Yacht Club holders received Mutant Ape NFTs for free, allowing existing users to mint new apes for free.
In the same way, project creators save up-front marketing costs and benefit from early backer promotion, who are financially encouraged to remain active in the project and attract new sponsors. Besides, project creators can stop spam from unwhitelisted addresses by creating user list, This is essential, as suspicious accounts can increase the price of gas and reduce the performance of the network.
Disadvantages of NFT whitelists
Getting on a whitelist takes time, as it requires constant engagement on the project’s Discord server and other social media pages.. Even so, one may not end up on the whitelist if the project fails to gain momentum.
Besides, scammers can carry out a phishing attack and entice investors to click on random links. Thus, users should be careful and communicate only with legitimate representatives of the project.
Besides, unpopular NFTs can end up being illiquid assets that are hard to sell on the secondary market. Therefore, always do your own research before minting non-fungible tokens and only invest money if you are satisfied with the future of the project.
How to enter the NFT whitelist?
By contributing to a project through its Discord server, Twitter, Telegram group, etc., one can gain the attention of the project’s founders in order to get whitelisted.. These are the basic steps to get on an NFT whitelist:
Search for an NFT project before launch
In their early phases, most NFT initiatives look for community members who can help raise awareness and reward participants in return. You can search for projects on Twitter and YouTube or use platforms like Rarity.tools to keep up with the latest trends..
Join the NFT project Discord server
After choosing a project, the next step is join your Discord server to interact with other members of that project and contribute to its development. Additional useful information such as the background of the project founders, the roadmap and the latest announcements can be found on the server, which can be used to assess the credibility of the project before joining the whitelist.
Follow the instructions to enter the whitelist
The instructions of the chosen project must be followed to request to enter a whitelist. Once the prerequisites have been met, the cryptocurrency wallet address must be provided which, if accepted, will offer access to the whitelist. Once added to the whitelist, a time slot will be assigned to mint the token.
How to get on the Binance NFT whitelist
As long as they meet the NFT or BNB requirements —for example, holding a certain amount of BNB holdings— to commit your tokens for sale, customers can have exclusive access to the latest non-fungible token sales using Binance’s NFT Subscription Mechanism.
Users have the opportunity to buy NFTs during the sale with participation tickets. The probability that a person’s tickets will be chosen increases as that person subscribes to more tickets. Besides, each user has a subscription cap, and the final NFT will be allocated fairly.
Preparation, Subscription, Calculation and Distribution are the four stages of the Subscription Mechanism process. All of them are essential to guarantee that the participants have the same opportunities in the sale. These phases are explained below:
Below are the steps to participate in the sale of Binance NFT through the Subscription Mechanism:
- Go to the Binance NFT website after logging into the Binance account.
- To participate in the NFT sale, you click on the banner.
- The subscription page is accessed, where it is possible to see information about the project, including the total number of NFTs that have been issued, the number of tickets each user can buy, the cost of participation tickets, the subscription limit for participation tickets and subscription countdown.
- Prerequisites determined by each sale must be met.
- By selecting “Subscription for Ticket(s)”, you can enter the number of participation tickets you wish to purchase.
- Users can track the progress of their NFT purchase once the winning tickets have been chosen. Successful buyers will discover their non-fungible tokens in the Binance NFT User Center, while users with failed 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 methods to steal funds from victims’ wallets. So being aware of certain warning signs helps keep you protected. As already mentioned, whitelisting involves a few basic steps. However, If a project representative or random user asks you for a bribe to whitelist your name, it is a scam, since the real non-fungible token creators do not control their community.
If you are asked to share your private key or bank details to get on the whitelist, consider it a red flag and avoid sharing that information. Also, if you’ve received an email, text, or call from an unverified source about your whitelisting, do your due diligence on the project before committing funds. Trust only the official links posted on the project’s Twitter account or on Telegram or Discord channels.
Is it worth trying to get on an NFT whitelist?
Entering the whitelist requires a lot of effortincluding NFT pre-sales research, ongoing contribution to NFT projects, and engagement with project team members. However, it is possible that it will not be possible to enter the whitelist, since each project or platform has specific selection criteria. For example, users must meet Binance’s BNB and NFT prerequisites to participate in non-fungible token sales using the Binance NFT Subscription Mechanism.
In any case, the opportunity to get early access to intriguing initiatives is often worth it, since you can buy NFTs cheaply and avoid costly gas wars and expensive secondary market operations. Additionally, users can use whiteliss to bolster their investment portfolio if they have the right plan and are willing to put in the effort.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading: