NFT Presale, as the name implies, is the process of opening the minting process to community members or early supporters of an NFT project before the official launch to the public, usually through a whitelist or a mint pass.
NFT, Non-Fungible Token, collections appear on a daily basis, giving collectors the opportunity to be the first buyer of an NFT – a process known as “minting.”
When it comes to navigating NFTs, the term minting can be perplexing because it refers to both a collection becoming part of the blockchain and a collector purchasing an item from that collection for the first time.
What You Need To Know
One of the primary benefits of minting NFTs is that investors can purchase a collection as soon as it becomes available. That means they have the best chance of profiting if the NFT collection’s value skyrockets after being listed on secondary NFT marketplaces like OpenSea.
High rewards, however, are accompanied by high risks, and NFTs are no exception. When you invest in non-fungible assets, your funds may become more illiquid (harder to withdraw) than if you invested in fungible cryptocurrencies like bitcoin.
Selling bitcoin, for example, is possible at any time through a wide range of exchanges, mobile applications, and brokerage platforms. However, with NFTs, you are usually limited to a few marketplaces, some of which have a limited number of buyers.
Fast-Changing Norms of NFT Sales
The Bored Ape Yacht Club is now the world’s most valuable NFT collection, with a floor price of 100 ETH (around $270,000 at the time of writing). The public mint of the collection took place in late April 2021 and lasted several days. Those first in line were able to snag the hugely desirable NFTs at just 0.08 ETH ($217) each.
Admittedly, there wasn’t a great deal of competition to mint NFTs before the sector’s boom in early 2021. But as the NFT market has continued to evolve and expand, the minting processes took on new forms.
These days, many NFT projects come to market through a two-tiered system. Instead of launching only through a public sale, projects might run a pre-sale first.
How To Be Whitelisted For A Presale
A whitelist is the process of pre-approving a crypto wallet address for an NFT pre-sale. It functions similarly to an early access list in that it guarantees that a certain number of crypto wallets will be able to mint one (or more) NFT of an upcoming project.
A whitelist spot is a holy grail in NFT mints these days. These grant access to the presale, which occurs a few days or hours before the main public sale.
Pre-sale mint prices are frequently lower than public sale prices. However, the low price isn’t the only reason whitelists are in high demand. Having a guaranteed slot to mint an NFT relieves the pressure of competing to mint during a public sale when the collection’s supply is limited.
Requirements On How To Be Whitelisted
The requirements for whitelist eligibility differ depending on the NFT project. They are usually listed in the “announcements” section of the project’s Discord channel, and the link to the Discord channel is shared on the project’s Twitter feed.
Typically, whitelist spots are distributed based on engagement on the messaging app Discord. NFT projects enjoy a good buzz, and the most active community members who contribute to them will be rewarded. Common metrics include chat frequency and friend invitations.
The NFT project may also award whitelist spots on Twitter to those who help spread the word about the upcoming collection by tweeting about it.
Whitelists may be referred to by different names in different projects, such as “pregame” or “star list.” However, the concept remains the same.
What is NFT Grinding?
Grinding is the time spent playing a game doing repetitive tasks in order to unlock a specific game item or to gain the experience required to progress smoothly through the game.
Whitelist requirements have recently become so stringent and time-consuming that many NFT traders refer to it as “grinding.”
SEE ALSO: 7 Beautiful Habits Of Confident People
Prospective collectors must purchase a branded hoodie and beanie for $150 to be entered into a raffle for Invisible Friends, a project that has yet to launch as of this writing. This only increases the likelihood of someone being added to the whitelist.
How To Mint During The Presale
If you have snagged a whitelist spot, congratulations! You will be able to mint an NFT during the presale by going to the project’s website, connecting your crypto wallet, and clicking “mint.”
Caution is advised, however, as scams posing as presale NFT launches are common on Discord. Project administrators will never send you a private message with a mint link, but scammers will.
It is critical to consider minting in the same way that you would enter a lottery. You frequently cannot choose which artwork to mint, which means you have no control over the rarity of the piece you receive. The so-called “reveal” could occur after the public sale when the entire collection has been minted.
Secondary markets open for trading immediately following the presale, so if you want to make a quick profit, you can sell or buy an unrevealed NFT before the public sale.
Public Sales and Gas Wars
Gas wars occur when different network participants battle it out to secure space in the next block, by taking part in a priority gas auction.
The mechanics of public sales are similar to presales – you connect your crypto wallet and mint – but if there is too much demand, you may fail to mint an NFT. Not to mention that high demand can cause Ethereum gas prices to skyrocket.
The public sales are conducted on a first-come, first-served basis. Savvy NFT traders will engage in “gas wars” to be the first to be served. This entails paying miners increasing amounts of money in the hope that their transactions will be processed faster than those of other competing minters.
To make matters worse, even if your transaction fails, you will still be required to pay gas fees, so proceed with caution. There are no refunds on the blockchain.
Finally, keep in mind that there is no guarantee that your NFT will be worth more than the public or presale prices when you try to sell it on the secondary market.