If you have been involved in the NFT space then you have probably heard of NFT drops. Although a simple concept they are extremely important in finding the next best project. But what exactly are they?
Don’t worry, in this article, I will be answering this question and much more. So without further ado, let’s jump right in.
NFT drops are dates set by developers on which NFTs are launched. They detail the exact release time and price of an NFT collection. Ultimately, it is a way of bringing attention to a project launch.
What are NFT drops?
Put simply, NFT drops are a way for creators to relay information regarding upcoming NFT launches. In turn, fans know the exact launch date and the specifics of what to expect. This could include the marketplace it is launching on, the initial price, total supply, etc.
Often you can get guaranteed access to an NFT drop by being placed on a whitelist. This list is used as means to secure investments and reward loyal fans. However, users must meet the relevant requirements to get whitelisted. To learn more click here to read my previous article.
How to buy an NFT drop?
Purchasing an NFT drop is the same process as buying any other NFT. It involves the following steps:
- Firstly, navigate to the marketplace which is hosting the NFT drop. You can find this information on the creator’s website or drop calendar.
- Secondly, you need to connect your wallet and make sure you have enough funds to cover the transaction fee.
- Once you have selected NFT you will need to click buy and authorize the transaction. A prompt will appear on your wallet that you will need to approve. It is important to verify the address before approving the transaction
- Lastly, you can check the transaction on a blockchain explorer to make sure everything is processed correctly.
Best NFT drop calendars
The best way to plan and find NFT drops is by using NFT calendars. These have the exact launch dates. Here are a couple of the best calendars:
nftevening.com – this popular news site contains an extremely useful NFT calendar. The user interface is simple and intuitive. Moreover, you can filter by category, blockchain, past events, and the most popular NFT drops. Not only that but there is information on the total supply and the mint price. Overall, this is a solid pick.
raritysniper.com – another great choice is rarity sniper. This is a more in-depth calendar with an extensive range of NFT collections. Like NFT evening, users can filter by blockchain. However, unlike most calendars users can also filter by supply and sale price making analysis much easier.
Signs of good NFT drops
Strong community – an active user base is vital for a successful NFT launch. At the end of the day, demand is set by the community. Therefore, it’s important to look on social media platforms such as Twitter or Discord to see if there are positive discussions around the project
Original artwork – this point is entirely subjective, but ultimately it is the number one reason people buy art NFTs. If the artwork looks good and is not another Bored Ape Yacht Club clone then this is a good sign. The artist’s reputation will also play a role in value perception.
Utility – in essence, utility is a way of providing value outside of the basic NFT form. Creators provide perks and rewards to NFT holders. This could be in the form of exclusive concerts or merch. The utility is a great addition to an NFT launch.
NFT drop scams
It is important to do your research before buying into an NFT drop as scams are rife. Here are a few examples:
Rug Pulls – this is a common scam whereby a project does not fulfill its promises after taking the user’s funds. Malicious developers mint a new NFT pumping up the price. Then while extracting as much value as possible they abandon the project and the price crashes. To learn more about rug pulls click here.
Phishing – this is another prominent issue in the space. Essentially, scammers create fake websites which imitate legitimate NFT drops. Unsuspected customers who interact with these websites compromise their wallets. Consequently, scammers gain access to their funds, and their wallets are drained.
Hacks & bugs – Lastly, we cannot talk about NFTs without mentioning hacks. Smart contracts and wallets often get exploited due to bugs in the code. That is why you must use a hardware wallet to protect against hacks. The hardware wallet I recommend is the ledger nano X. You can check out my review by clicking here.
Overall, NFT drops are a simple idea. That being said, finding the next best NFT drop while also avoiding scams is the hard part. But hopefully, this article will guide you through the process and help you find the next hot NFT collection. Thanks for reading.
Want to learn about crypto roadmaps? Click here to read my previous article.