Main Takeaways:
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NFT whitelisting is the process of getting a crypto wallet address pre-approved for minting.
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Besides minting priority, users of whitelisted addresses may enjoy other benefits like reduced transaction fees and exclusive content, depending on the project.
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Learn how to get whitelisted on Binance NFT and other NFT projects in the market.
NFT whitelisting allows users to enjoy benefits like minting priority. Learn how to get your crypto wallet address pre-approved on Binance NFT here.
Due to the influx of NFT users, NFT projects have turned to a strategy called “whitelisting” to grant presale minting access to only pre-approved crypto addresses. Whitelisting is beneficial to both projects and users as it helps mitigate fraud and avoid gas wars.
Criteria for whitelisting approval varies from platform to platform, although some requirements are more transparent than others, like Binance NFT. Sign up for a Binance account today to participate in a fair NFT whitelisting process and enjoy the benefits of being whitelisted.
Want to participate? Read on to find out how NFT whitelisting works and the steps you can take to increase your chances of being whitelisted.
Disclaimer: Being whitelisted does not guarantee profits. NFTs are an emerging asset class that is still evolving. The information in this article should not be construed as investment or financial advice. Always do your own research before making any decision to buy, sell, or trade NFTs.
What is NFT Whitelisting?
NFTs (non-fungible tokens) are constantly evolving, encapsulating proof-of-ownership for assets as far-reaching as digital art, metaverse land sales, NFT gaming items, and even physical items. With such a wide cast of use cases, it’s no wonder that the NFT phenomenon has become such a popular area within the crypto space.
Many new and existing NFT projects have active and engaged communities looking to secure the latest NFT drop from their favorite projects. For some projects, it’s vital that the newest release is democratic and accessible to all, and one of the fairest ways to do this is through a process called whitelisting.
Whitelisting allows NFT projects to offer their communities the opportunity to mint an NFT sale prior to its public minting or sale.
Why are NFT whitelists used?
Projects practice NFT whitelisting for three main reasons: rewarding early supporters, preventing gas wars, and guarding against spam.
Rewarding early supporters
What the whitelist provides is a means for a smaller group of the community to have early access to an upcoming NFT release. Some projects may be releasing free NFTs and exclusive content to whitelisted users, while others could be allowing presale access at discounted rates; all whitelist offers vary depending on the NFT project.
The requirements for whitelist registration also vary from project to project. Some may require a range of tasks to be completed or a minimum wallet hold of that particular project’s asset. There is no standardized process for whitelisting; some projects may even grant pre-approval if you are actively participating in community events and chats, with no formal submission needed.
Preventing gas wars
Since public NFT sales don’t require whitelisting, a high number of users interacting with the smart contract simultaneously can cause transaction fees to rise significantly. This happens when users compete to get their minting transactions approved first, driving up gas costs and leading to what we call “gas wars”.
In contrast, whitelist registration allows only a selected number of wallet addresses to mint the NFT before the public sale, which means the sale is less likely to experience network congestion and gas wars. Another of the most effective ways whitelists avoid gas issues is by determining a specific timeframe within which NFTs can be minted. It’s worth noting that the gas price will vary depending on the blockchain network traffic as a whole. Sometimes, a whitelist sale can be affected by other minting sales or external events. A favorable addition to the whitelist concept for NFT projects is that if there is a huge demand to join the whitelist, it creates hype and buzz around the release, project, and potential subsequent releases.
For more information on gas fees on Binance NFT, check out our guide on What are the NFT Transaction Fees on Binance.
Combating spam
By establishing whitelisted users, projects can prevent spam from non-whitelisted addresses. In addition, the whitelisting process ensures that mass account registrations are not allowed. Preventing spam accounts from accessing presale minting is essential as they may slow down network efficiency and inflate gas fees for users.
Benefits of NFT whitelisting
Access to NFTs before public launch
While attracting many users is a sign of a successful NFT project, it also means that there will be more competition to mint NFTs. Whitelisted users often get priority or guaranteed access to mint NFTs, avoiding the competition, on-chain traffic, and soaring gas fees. For example, a project may allow only its whitelisted users to mint NFTs anytime within a predefined 48-hour period. As mentioned above, some projects may even offer exclusive NFTs as a token of appreciation for early supporters.
Reduced risk of fraud
One example of fraud is when someone repeatedly buys and sells their assets to inflate prices artificially. This practice, known as wash trading, is one of several tactics that bad actors use to manipulate the market.
Since users typically have to pass whitelist criteria before being granted access to the NFT presale, theoretically, the risk of fraudulent behavior is reduced. Restricting the mint period can also prevent bad actors from attempting to monopolize the project’s NFT market.
Caution against whitelisting
While priority or early access to crypto may sound like a lucrative idea, users should note that being on a whitelist and minting presale NFTs does not guarantee profits. If you mint NFTs that are unpopular, they might just end up being illiquid assets that are difficult to sell on the secondary market. Remember to do your own research before minting and invest only what you are willing to lose. Given the volatility of the market, there is no way to accurately predict the demand of assets offered by new projects.
How to get whitelisted in 3 steps
1. Find projects before they are launched
The NFT market is brimming with potential projects hoping to attract new users. These new NFT projects may offer whitelist spots before their official public launch. In other words, to get whitelisted, you’ll need to be early.
If you like seeking new opportunities and trying novel products, this should be right up your alley. However, if you are not an early adopter, you need to be aware of the risks involved as you are placing trust in a new project that has yet to prove itself. With NFT scams prevalent, it is advised to always do your own research before joining a whitelist.
2. Join Discord groups
Once you have done your research and decided on a project, you will need to join the community by entering a project’s chat group. For NFT projects, Discord is the primary communication tool, followed by Twitter. Each Discord group may vary from project to project, but information about the whitelisting process is usually posted on the Announcements channel. If there isn’t any information there, explore the other channels of the Discord group. It is possible that you missed the whitelist period or that the project does not have a whitelist. Alternatively, ask other members of the group in the community chatting channel. Most projects have a general channel to facilitate conversations about the project or other general topics.
3. Apply to be on the whitelist
Once you have done ample research on the project and whitelist criteria, it’s time to apply to be on one.
Whitelist applications can range from filling out a simple Google Form to earning a spot by being an active referrer of their project. Some projects even use a lottery system in their whitelist process. Each project is unique and has its own rules governing its whitelist process.
There is no guaranteed way to get on an NFT whitelist as requirements will differ. For instance, creator-focused projects may only select winners of an art contest to be on their whitelist. This unique selection process is why being connected and informed about new developments in Discord groups is beneficial to users hoping to get whitelisted.
Sometimes, the selection process may not be entirely transparent. It’s important to only complete the tasks that you feel comfortable with. In case you’re discouraged about not getting accepted, remember that other projects in the market offer opportunities too.
How to get whitelisted on Binance NFT
It may be hard to successfully get whitelisted for other platforms or companies due to a lack of transparency regarding requirements. However, on Binance NFT, the selection criteria are transparent and fair, thanks to the Binance NFT Subscription Mechanism.
Through the Subscription Mechanism, users can get exclusive access to the latest NFT sales, as long as they meet the NFT or BNB prerequisites. For example, certain sales might be exclusive to holders of certain NFTs, such as our recent Easter Subscription Mechanism sale.
Conclusion
As NFT continues to make waves, the competition to mint may be tough, depending on how popular the project is. If you’re interested in minting NFTs, consider applying to get whitelisted and increase your chances of a successful mint. As always, make sure to establish an NFT project’s reputability and take the time to research before making any trades.
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Disclaimer: Cryptocurrency investment is subject to high market risk. Binance is not responsible for any of your trading losses. The statements made in this article are for educational purposes only and should not be considered financial advice or an investment recommendation.
