The space of non-fungible tokens is constantly swept by crypto scams and illicit activities. Therefore, the way to avoid all kinds of existing and newly created fraudulent activities is to stay updated and informed about them.
In addition, the prices and the transaction charges in the non-fungible market may also rise due to increased competition for the newly created NFTs, making it difficult for an ordinary trader to afford them.
Therefore, the non-fungible token providers are constantly trying to tackle this issue by creating allowlists or whitelists. These help the traders to get easier access to the non-fungible tokens providing them special privileges in the market.
Moreover, an allowlist is usually deployed by the projects dealing with non-fungible tokens before initiating the minting process. It helps in the restriction of users who can mint NFTs.
A list containing the wallet addresses that provide users access to the NFT collection before the general public is known as a whitelist. This comprehensive guide article will elaborate on the concept and workings of the NFT whitelist. Moreover, why these lists are used and how one can get registered in those lists.
What is an NFT Whitelist?
A list used in cybersecurity that contains approved IP addresses, applications, and email addresses while eliminating all others is known as a whitelist. Therefore, it gives the users on the list unique access and rights to access a particular object.
In the crypto space, while dealing with non-fungible tokens, the list containing wallet addresses that are provided with exclusive minting privileges is known as the non-fungible token allowlist. It allows minting one or more non-fungible tokens, usually at lower rates, before making them available to the general public on the scheduled date.
A mint pass or an allowlist offers the opportunity to the community members and the early traders to mint their tokens using a pre-mint before it is available to the public.
However, unlike an allowlist, the mint pass charges a certain amount from the traders before allowing them to mint non-fungible tokens before the public.
Working of an NFT Whitelist
After compiling their wallet addresses on the list, early access to the newly minted nonfungible tokens is provided. Therefore, to become a prospective buyer, the first task is to get the wallet address approved for whitelisting.
Most of the projects usually evaluate their users’ accounts before adding their names to the whitelist, as they want only true and enthusiastic fans to access their non-fungible tokens.
Once a particular wallet address is added to the NFT whitelist, they are provided with a time and date to mint their required tokens. Usually, a time slot within two days is provided after registration; however, it may vary as the slot length may differ for different projects.
Users will be allowed to access their accounts and mint the tokens of their choice on the scheduled date, and therefore, they should wait patiently for their turn.
How Can Anyone Enter the Whitelist?
One can grab the attention of the owner or the founder of any project by participating in the project through the social media platforms such as Telegram, Discord, Twitter, etc. This provides him with a more accessible opportunity to get added to a whitelist. Some of the basic steps needed to get registered for a whitelist are mentioned below.
- Keep an eye on an NFT project before its launch
Most NFT projects look for multiple community members in their early stages who can help spread awareness regarding their projects. The people interested in this duty are then provided with rewards in return.
Therefore, interested participants can use their social media accounts, such as YouTube and Twitter, to stay updated regarding the upcoming NFT projects. In addition, they can also join several platforms, such as Rarity.tools, to get the latest NFT news.
- Join the Discord server of the NFT project
After one has finalized the project that he needs to join, the next step is to join its Discord server to contribute to the project’s development and to increase interaction with other participants.
Moreover, using the server, one can also find out additional information that may prove helpful later, such as the latest project announcements, the roadmap of the project, and data regarding the project’s founders, etc. This information may also help in evaluating the credibility of any project before aiming at joining its whitelist.
- Follow the steps required to get whitelisted
Every project has its application process. Therefore, to enter the allowlist, the user should follow the instructions given by the project of his choice. After completing the initial requirements, the user has to provide his crypto wallet address.
If the project accepts the address, the user can access the whitelist. Then he will be given a time slot after being added where he can mint the tokens of his choice before the community.
Procedure to Get Whitelisted On Binance NFT
Customers can access all the recent sales of non-fungible tokens using the NFT Subscription Mechanism of the Binance platform. However, they can avail the opportunity and commit their tokens in the sale if they fulfil specific requirements proposed by the NFT and BNB platform, which may include maintaining a required amount of BNB tokens, etc.
Moreover, by using their participation tickets, users can also buy the non-fungible tokens of their own choice. as the user subscribes to a more significant number of tickets, the chances of him being chosen also multiply. A subscription cap is also provided to all the enthusiastic users, but the last remaining non-fungible token is allocated without partiality.
The four phases of the Subscription Mechanism process over Binance are elaborated below. All these stages are necessary to ensure that all participants have an equal chance in the NFT sale.
The user needs to accomplish all the prerequisites required by the BNB and NFT platforms depending on every sale. These conditions may include holding a certain minimum amount of BNB in the wallet or locking the non-fungible tokens for a specific period. Moreover, specific projects may also set some other criteria for the user to enter the sale.
Users can also participate in the NFT primary sale by allocating their tickets or a specific amount to any pool. Most of the non-fungible tokens the user may buy during a sale may be specified using a participation ticket.
If the entire procedure is carried out fairly and without partiality, all the participation tickets are considered while choosing the final winning tickets.
The users whose participation tickets win at the end can buy the non-fungible tokens of their own choice during the sale.
Steps To Participate in Binance NFT Sale
The user can participate in the Subscription Mechanism sale by following the below-mentioned steps.
- Firstly, the user has login into his Binance account and go to the web page of Binance NFT.
- Then click on the banner on that page in order to participate in the non-fungible token sale.
- This will lead the user to a subscription page. On this page, he can view all the project-related information. This information may include the number of tokens that have been issued by the project, the subscription countdown, the subscription cap for the participation tickets, the charges required to get the participation tickets, the count of tickets that the user has purchased, etc.
- The next step is to complete all the required steps demanded by the sale.
- The user can enter the number of tickets he wants to buy by selecting the option “Subscribe for Tickets”.
- After the winning tickets are chosen, the user can finally track the progress of their purchase of non-fungible tokens. If the user becomes successful, he can discover his NFTs on the NFT Use Centre of Binance. On the other hand, if he fails to purchase, the Binance platform will return his funds.
Advantages of NFT Whitelists
Several advantages are provided to the collectors, investors, and project creators by the NFT whitelists. A few of them are mentioned below.
- Access to Tokens Before the Launch
As any NFT project succeeds in attracting a large number of people towards its projects, at the same time, it also increases the rate of competition in the market. However, whitelists allow particular users to mint NFTs before the general community, thus decreasing the on-chain traffic.
- Avoids Strenuous Competition
Every non-fungible token is unique; therefore, they have a limited supply in the market. So as soon as any NFT is minted, it gets eliminated from the market, leaving many buyers empty-handed. This may result in the resignation of many buyers, or they may buy it at increased prices in the secondary market.
However, the main idea is to unite the people under a common belief and increase their interaction; therefore, several NFT projects always try to avoid such fierce competition. Implementing a whitelist thus decreases the competition in the market, putting forward serious buyers and facilitating them in accessing the tokens of their choice.
- Refrains from Gas Wars
While dealing with blockchain technology, the transaction charges do not remain constant. The demand for any digital product is directly proportional to the increase in transaction fees. As the congestion in the network increases, the charges become higher.
Launching any popular NFT is highly responsible for the choking up of a network. Moreover, many enthusiastic supporters are left empty-handed as millions of buyers bid for a single token.
However, the buyers may be willing to pay more in the case of freshly minted tokens. Therefore, the transaction of those buyers who pay more is carried out first. Sometimes, the transaction charges exceed the price of the NFT itself.
The NFT whitelist solves this problem by providing a time window to the buyers where they can buy their tokens by saving on the gas fee. This decreases the competition among the buyers, refraining the users from outbidding each other at higher transaction costs.
- Incentives for Early Supporters
A whitelist provides early access to certain people in public to mint their chosen NFTs. It depends on the project’s policy and what kind of benefit it provides to the user.
Some of them may allow the user to buy the non-fungible token for free, while others may share the exclusive content of their project with the user. Moreover, some may offer the user to buy tokens at discounted prices.
However, getting registered for the NFT whitelist may also vary. Some projects may ask the user to hold a specific amount of the project’s asset in his wallet or to complete a specific task in a given period.
Some of the projects may not even require a formal submission and choose the user for the whitelist for his increased participation in the group chats and discussions. Therefore, one should know that getting on the whitelist has no standard procedure.
- Reduces Risk of Scams
The common illicit practice used by scammers to manipulate market conditions is wash trading. It happens when anyone buys or sells his assets recurringly in the market to increase their prices. However, as the users are provided access to NFT sales after passing the whitelist prerequisites, the risks of scams and cybercrimes are usually reduced.
Disadvantages of NFT Whitelists
In addition to providing several benefits to its users, NFT whitelists also have certain disadvantages that users cannot deny. Some of them are mentioned below.
It requires consistent effort for the users to get registered on the whitelist. Therefore, continuous engagement on social media platforms can be time-consuming for the user. Moreover, it still does not ensure if the project will prioritize him for the whitelist.
- Phishing Attacks
While dealing with crypto assets, phishing attacks are a significant hurdle. The users may be made to click on some random websites or links sent by anyone, thinking of them being authentic. Therefore, it is essential always to be alert and only consult with actual project members before finalizing any decision.
The non-fungible tokens not sold in the NFT sale or are not preferred by the general public become illiquid. It even becomes difficult for the owners to sell them in secondary markets. Therefore, it is essential to carry out research before investing in a token to avoid any problems in future.
Ways to Find Out an NFT Scam
As the hype of non-fungible tokens is still growing and people are learning to adapt to them, cybercriminals have also become activated to wipe out the funds from the users’ wallets through illicit means. Therefore, certain warning signs can help users to stay alarmed about such activities. However, there are specific steps that are involved in getting whitelisted.
However, if any random person or anyone involved in the project offers the user to get his name on the whitelist by asking for money, this should be an alert sign for the user. This is because the community members of the NFT space do not have direct control over others.
In addition, another alarming situation may include being asked for the bank details or the private key to the wallet by any member to get his name on the allowlist.
Moreover, suppose any call from an unknown number, a text, or an email is received from an unknown source that informs the user about his selection for the whitelist. In that case, it is essential to verify the authenticity of the source before sending or investing any funds.
Moreover, it is always advised to the users only to trust the accurate sources and the authentic links posted by the project on its social media platforms such as Twitter, Discord servers or Telegram, etc.
Should One Strive to Enter the NFT Whitelist?
A lot of effort is required to get the name registered in the NFT whitelist, which may include increased engagement with the members involved in the project, continuous participation in the NFT projects, and investigation of NFT presales.
However, despite all these efforts, one may still not be able to get whitelisted due to the specific criterion set by the project or its platform.
In order to participate in the NFT sale taking place on Binance, the users have to fulfil the initial NFT criterion and rules set by the Binance BNB platform by using the NFT Subscription mechanism set by the Binance platform.
However, if one succeeds in getting his name registered on the whitelist, the opportunity may prove worth it as he might be able to buy the nonfungible tokens at a lower price.
Moreover, it may help the user avoid trades in costly secondary markets and expensive gas wars. In addition, if the users have a proper plan and continue to put effort into trading, they can also use the whitelist opportunity to improve their trading portfolio.
The competition in the NFT market may increase as they get hype worldwide. Therefore, to increase the probability of minting the token of his choice, one should strive to get whitelisted. However, it is essential to check the project’s authenticity and choose a reputable NFT project for this purpose.