In this article, we review why it’s important to be aware of the details of non-fungible token launches and provide tips on how to navigate such events.
What is an NFT Drop?
An NFT drop is the release of a collection of non-fungible tokens. The concept refers to the exact moment when an NFT is deployed and offered to collectors.
The term “drop” is also used in other markets with the same meaning: it is the exact instance of a release. As Cointribune explains, it is also associated with the commercial deployment of limited editions, products, and collectibles. NFTs have adapted to this concept.
Why is it important to know the details of an NFT drop? Because it allows investors to be “first in line” when the asset starts its journey.
Think of this example.
Knowing when the drop of an NFT is, is similar to waiting at the door of a store for the arrival of a highly anticipated product, to have it before anyone else. That scene surely recalls the launch of the first Apple iPhone models.
In addition, entering the NFT drop at the moment it happens means that you are likely to get a better price on the purchase and that it may eventually skyrocket in the future.
As we will examine in detail in Tips for buying in an NFT drop, staying informed about the launches of these digital assets allows you to fully take advantage of the opportunities that are unfolding.
In addition, it allows investors to have the knowledge to make good decisions and avoid scams.
What types of NFT drops exist?
There are various types of NFT drops. Let’s see what you should keep in mind at this point:
- The most common launch allows NFT creators to offer the collection in order of arrival.
- In some cases, those who mint NFTs establish limits for purchase by a single owner of a wallet.
- In the Open Edition mode, a creator mints as many NFTs as they can within a specified time period; the amount reached at the end of that period is what will be included in the collection launch.
- The so-called English Auctions occur in selective NFT markets; the creator offers the asset just as it occurs in traditional auctions of works of art, antiques, wine, etc. Because the winner pays their bid, this type of bid is known as a “first price auction.” In other words, the best bidder wins.
- Dutch Auctions (Dutch Auctions) are less common in the NFT world. In these cases, the price starts high and decreases as the bidding progresses.
Tips for buying in an NFT drop
Among the recommendations for buying in an NFT drop are the importance of researching assets, maintaining a critical posture to distrust too attractive offers, and examining what are fair prices to avoid overpaying.
Let’s see these tips in detail.
Research before buying
A good practice before any purchase, which also applies to these investments. Some questions to answer are: who created the NFT?, what other collections have they offered for sale?, are they part of a community?, what is the seller’s reputation?, and what do other people say on specialized forums and sites?
Finding negative information is clear evidence. Not finding data about sellers should also be considered as an alert.
Distrust too tempting offers
We have learned this thanks to computer security specialists: when an offer is too tempting, we should analyze it in detail. A too low price (in the case of NFTs) may be the “bait” to trap possible victims of fraud.
Beyond scams, it is advisable to avoid buying an NFT just because it is cheap or because you can pay for it. Keep in mind that we are talking about an investment that you hope will increase in value.
Buy NFTs that you like
Personal taste should not be left behind in this field. If at times it will be necessary to save a little more capital, it will be better to be patient and opt for a token that really generates satisfaction.
Following Creative Bloq, it is an interesting stance to stop thinking of NFTs as simple metadata and, instead, perceive them as art and/or collections. This way, more sensations and impulses come into play when buying them.
How to find NFT drops?
Finding NFT drops doesn’t require being an expert, but it is harder to find an asset that meets the tastes and possibilities of each collector-investor.
At this point, we know that the non-fungible token market has much in common with art collecting. That’s why the ways to find NFT drops are similar.
You can find out through social media posts, specialized media, word of mouth, etc. Other online environments, such as The Sandbox and Decentraland metaverses, are conducive to finding NFT drops. There are also specialized launch sites, such as NFTcalendar.io.
Finally, those interested in keeping up with NFT drops should stay alert to avoid scams with NFTs.
In that sense, it’s advisable to avoid and/or check the information that arrives by email and direct messages on networks, with special invitations to participate in a whitelist that will allow you to enter before others.
This doesn’t mean that all these invitations are attempts at fraud, although they are a good opportunity to put our advice into practice: always investigate before investing.