Getting on an NFT whitelist allows users to buy tokens before the public minting process. This can prevent users from catching up in a gas war, saving them money and time. NFT projects will often host giveaways on social media, in which people can win a spot on the whitelist by retweeting or sharing information about the project. This is why it’s best to join the relevant Discord server and watch the announcements section.
Authenticity
The goal of a whitelist is to recognize and reward loyal fans of a project. Getting on one of these lists can make a big difference in your ability to purchase NFTs during a public sale and in the value of those NFTs later on. The most common way to get on a whitelist NFT is by joining the NFT project’s Discord server or Twitter account. From there, you can keep up with new developments and interact with other community members. Usually, NFT projects will post instructions on how to apply for a whitelist in the “announcements” section of the server. One of the biggest reasons whitelists exist is to avoid competition with presale events. During this time, many people want to buy the same NFTs. This can lead to confusion, especially as some people may not be genuine buyers. Whitelists help avoid this by allowing buyers to mint their tokens during a specific window. To ensure authenticity, NFT projects may ask whitelist applicants to prove they are human. This might require them to enter a Captcha or set up two-step authentication. It can also include a requirement to join their public Discord channel or verified Twitter account. This is to avoid bot accounts and nefarious players trying to hijack NFT presales for resale purposes.
Security
A thriving NFT project relies on the support of a dedicated and engaged community. Whether through social media channels, forums, or Discord servers, an active NFT community should be a positive sign for the project and a critical factor in whitelisting it. However, it is essential to remember the common pitfalls that can undermine a project’s authenticity and security. For example, some whitelist applicants may use bots or other deceptive strategies to infiltrate communities and gain access to a project before others. While these individuals may have good intentions, they are not helping to foster a genuine and supportive environment.
Additionally, they can create a sense of competition and “gas wars,” which are a severe threat to the stability of the blockchain and discourage genuine engagement. Another pitfall to avoid is getting sucked into an NFT project that is a scam. This can happen when a project gains traction and many people rush to the whitelist. This can lead to a massive loss of money and time, especially if the project needs to gain traction. To help protect against these pitfalls, it is essential to carefully research the projects you want to whitelist before committing to your wallet address.
Avoiding Gas Wars
Whitelist spots can help you avoid high transaction fees on the Ethereum blockchain, especially when an NFT has become popular and thousands of people try to mint it simultaneously. This is known as a “gas war,” it can be costly, even costing multiple times the NFT mint price. Because of this, many NFT projects will have giveaways on social media or in their Discord servers to give users a chance to earn their spot. This can include tweeting about the NFT presale, contributing to the community in Discord, or bringing new people into the Discord group with your referral link. Many NFTs are meant to create a vibrant online community, so this type of in-group access is essential for the founders to see you’re an active and engaged user. The goal is to show that you’re a positive addition to the in-group, which makes you more likely to be whitelisted. However, getting on a whitelist is a time-consuming process. It can take hours of social media engagement, interacting with other community members, and promoting the NFT project on Twitter and other platforms. And there’s no guarantee that the NFT will be successful, which means you could save time for no real benefit.
Privacy
Whitelists prevent “gas wars.” Gas Wars happen when too many people mint their NFTs at once, creating heavy traffic on the blockchain and raising transaction fees for everyone. This is a big problem because it slows down the process, discourages those who would otherwise be interested in buying an NFT, and ultimately hurts the NFT creator’s bottom line. Whitelists eliminate the problem by allowing only a small group of pre-approved buyers to buy their NFTs during a specific window. Another benefit of whitelists is that they protect a buyer’s privacy. Many projects have to deal with shady actors who try to get a head start on the minting process by registering several fake crypto wallets or spamming the project’s social media. Whitelists stop these accounts from taking away the opportunity from legitimate buyers and protect against fraud, as scammers don’t get a chance to profit from their efforts. To be a part of an NFT’s whitelist, a potential buyer must register their public ETH address in the project’s wallet.
