NFT Drops : An Extensive Guide For Buying Them!

Intending to participate in upcoming NFT drops? Thinking of unleashing your creative acumen and dropping some cool media art collections for public sale? With the NFT market burgeoning and exhibiting bullish on-chain metrics irrespective of the crypto market vagaries, it is a great idea to create or collect NFTs.

So, what is an NFT drop? Akin to a product, service, or album launch, an NFT drop refers to the public release of an NFT collection. It encompasses the drop date, exact time, a pre-determined minting price, and purchase limits that cap the number of NFTs you can mint per transaction.

Continue reading to understand NFT drops better.

Why Are NFT Drops Attractive?

 

NFT drops are lucrative because they help investors procure certified limited-edition artworks at affordable prices. Those who mint NFTs as soon as the drop commences are likely to get NFTs at cheaper rates. Thus, the earlier you enter a drop, the better.

Another benefit of NFT drops is a whitelist spot. Whitelisted investors are entitled to an assured minting slot and pre-sales which take place a few days/hours before the public mint. Thus, you are eased of intense competitive pressures to get minting slots, especially for hyped-up projects. Plus, pre-sale prices are lower than minting prices. The lower the NFT cost, the greater will be the profit margins when your NFT’s value soars in the secondary market.

Moreover, most NFT project creators/artists collaborate with external marketplaces to list the collection immediately after the drop is done. Hence, you can flip the purchased NFTs and make colossal gains, if their value skyrockets rapidly.

Lastly, every day many NFT drops go live across multiple blockchains. The abundance of drops can be largely attributed to big brands and celebs penetrating the NFT sphere, piquing public interest in immutable virtual art. Moreover, with growing NFT use cases in blockchain gaming and the metaverse, the number of daily drops is expected to rise phenomenally. Hence, NFT enthusiasts will have zillion choices in days to come.

 

 

NFT Drop Types Explained : Know About The Different NFT Types

The NFT drops are mainly of the four types

Standard NFT Drops

It is a type of NFT drop wherein collectors can buy tokens on a first-come-first-serve basis at a prescribed minting fee plus gas. The live mint will continue till the collection is 100% sold out.

Moreover, most standard drops restrict the quantity of NFTs bought by a single entity/wallet to prevent the concentration of an NFT series in a few hands. Thus, more buyers can participate in the minting process and contribute towards community expansion.

Open Editions NFT Drops

In 2021, SuperFarms had conducted a Genesis NFT drop called Falcon PAC which lasted for over 12 hours. Similarly, Nifty Gateway had organized a Boardrooms drop. A distinguishing factor was that these were open edition NFT drops. They were live for limited hours and had no preset edition sizes or purchase caps.

In short, open editions are timed drops allowing collectors to mint as many NFTs as possible within the stipulated time window. The window can be as short as 5-10 minutes and the total amount of NFTs purchased during the window becomes the ultimate supply quantity of the collection.

NFT Drops On Dutch Auctions System.

 

It is a bidding system following a descending price format. Prior to the auction, the auctioneer collects all bids and sets the ceiling price for the asset. As the auction progresses, the price declines at regular intervals by a fixed percentage at a pre-established pace till it touches the resting price. Moreover, Dutch auctions curb the frantic flocking of collectors during launch time and redistribute sales flow.

The Art Blocks project uses Dutch auctions as it reduces gas wars, especially on Ethereum, and diverts Ether from miners to artists and creators. It also returns excess minting fees to buyers.

English Auctions NFT Drops

 

They are analogous to conventional auctions and adopt the ascending price format wherein bidding starts at a preset floor price and collectors submit bids within a specified time frame. When the auction closes, the highest bidder gets the asset.

English auctions are ideal for extremely scarce 1/1 NFTs. World-famous auction houses Christie’s and Sotheby’s predominantly follow the English auction system.

Where Can You Discover NFT Drops?

Finding NFT drops is easy, but finding trustworthy ones with high-profit potential and appealing to your senses is daunting. With NFTs proliferating the digital assets market, filtering out the legit from the scams and the best from the worst has become increasingly complex.

Appcraver brings to you quality and fact-checked information about NFT drops on different blockchains like Solana, Ethereum, Cardano, Elrond, and others. To access information about the best upcoming and ongoing NFT drops, go to Appcraver/NFT-drops (hyperlink).

Below are a few of the methods for identifying an NFT Drop.

Finding NFT Drops on Social Media(SM) platforms

 

The top SM handles for tracking vital NFT drop details are Twitter and Discord. The Discord page provides periodic information on project upgrades, roadmaps, giveaways, drops, and merch releases. Moreover, you can join the Discord community of NFT projects without much ado.

Besides, most NFT artists and projects have dedicated Twitter profiles regularly tweeting
project-related events. They may also have Instagram, Facebook, Reddit, or Telegram accounts featuring their art galleries, collection items, and project-related stuff.

The Video-streaming platform, Youtube, is also a popular destination for finding NFT drop data. Another platform, Medium, is ideal for accessing long-form descriptions about drops, Web3 updates, projects, and tokenomics.

Lastly, SM profiles contain links to a project’s website. The website provides all information pertaining to the project including drops.

NFT Drops Listed in NFT Marketplaces

 

Like Amazon is to real-world items, an NFT marketplace is to one-of-a-kind cryptographic tokens. NFT marketplaces are online platforms for buying/selling blockchain artworks and your prime gateway to trade in the tokenized art realm. Besides, they enable users to mint, list, and monetize their NFT creations. Hence, we can call them meeting places for investors, collectors, artists, creators, and brokers.

Moreover, marketplaces are blockchain-specific. Furthermore, they may be closed marketplaces like MakersPlace, Foundation, etc., or open marketplaces like Solsea, LooksRare, etc.(24). Besides, they may cater to a specific niche. For instance, “exclusible” is a premier marketplace for luxury brand NFTs.

Marketplaces are also go-to places for finding real-time and forthcoming NFT drops. Some top marketplaces are:

Opensea

It is the largest and earliest cross-chain open marketplace supporting Ethereum, Klaytn, and Polygon-based NFTs. Moreover, it provides gas-free trades on Polygon. As of February 19, 2022, Opensea has 1.2M+ traders and trading volumes equalling $21.73B.

It has affiliated with renowned web artists across the globe to launch new and exclusive drops and special top-tier sales. You can subscribe to its monthly newsletter – Tide, to search for the requisite drops information, Dev updates, new DeFi applications, promotional discounts, etc. Boog – Exclusive music and Censored Pigs are the top NFT drops to look forward to on OpenSea in the coming days.

Rarible

Rarible is a multi-chain marketplace compatible with Ethereum and Tezos. Enjoying overall tenth rank among all marketplaces, Rarible, as of February 19, 2022, boasts of 97K+ traders and trading volumes of $292M+. The Rarible newsletter covers market analysis, tech upgrades, project developments, drop news, curated art pieces, and much more. An upcoming hot drop on Rarible is the “never-seen-before Nirvana” NFT collection.

Read our Rarible review here

Crypto.com

It is a leading cryptocurrency exchange and crypto-trading services provider with a huge customer base worldwide. Recently, it launched its own NFT marketplace and supports NFTs minted on crypto.org chain and Ethereum. Moreover, Crypto.com collaborated with biggies like Snoop Dogg, Michael Rashid, etc., to launch celebrities’ collections.

Some premier brands associated with Crypto.com are Philadelphia 76ers, Aston Martin F1, UFC, Heavy Metal, etc. You can buy NFTs on Crypto.com at a fixed price or through an auction. Subscribe to their newsletter for periodic news on drops, collectibles, special giveaways, and user surveys.

Depending on what blockchain or genre your desired NFT belongs to, intermittently check the partner marketplaces for drop information. For example, if you seek Solana NFT drops, follow Solanart, Magic Eden, Digital Eyes, etc. Similarly, for buying BSC-based NFT drops, check Pancakeswap and Bakeryswap. For basketball-related drops, browse NBA Top Shots and so on.

Subscribing to Podcasts For Finding NFT Drops

 

NFT podcasts or audibles are excellent mediums for knowing everything about blockchain, not just NFT drops, in particular. Some outstanding NFT podcasts you can’t afford to miss are Bankless hosted by David Hoffmann and Ryan Adams, Unchained anchored by Laura Shin, Zima Red spearheaded by Andrew Steinwold, and most importantly social entrepreneur and NFT creator Gary Vee’s audio experience on Apple Podcasts.

What You Shouldn’t Do While Purchasing NFT drops?

The important mistakes people make while investing in NFT drops are the follows.

Buying NFT Drops Without Adequate Research

Buying crypto artworks is synonymous with buying branded products. The bigger the project brand or creator status, the more trustworthy or valuable is the collection. NFTs churned by relatively unknown artists may be a scam in disguise. Thus, researching a project’s branding, SM activity, creators’ standing, community size, and smart contract terms is imperative.

The best way to gauge creators’ public image, accomplishments, failures, and popularity, is to track their social media. Moreover, a large number of followers implies a robust fan base.

A project’s roadmap gives insights into the vision, mission, collaborations, perks, and authenticity of an NFT project. It also reflects the concrete efforts of the project’s founders and confirms their brand-building intent.

A thriving community on communication platforms like Clubhouse, Twitter spaces, Discord, etc., further confirms the credibility of a project.

Lastly, studying smart contract terms like expiration dates of redeemable merchandise or promotional coupons, NFT burning, amalgamation, forking criteria, etc., helps in making informed investing decisions.

In general, steer clear of NFT drops with unvalidated smart contracts, allowlist sales, faulty project design, unaudited infrastructure, unscrupulous SM behaviour, and fabricated floor maintenance.

Falling Prey To Fake Drops

Investing in NFTs sans careful analysis may trap you in the following kinds of scams.

1) Rug Pulls

In January 2022, creators of the “Big Daddy Ape Club” series, successfully swiped $1.3M from prospective collectors, leading to the biggest scam on Solana. The fraud occurred irrespective of the creators being vetted by a validation firm. They deleted their SM handles too.

It was a rug pull wherein developers intend to make quick bucks and dump the project immediately after the NFT drop and vanish with investors’ money.

2) Purchasing NFT Drops From Fraudulent Sites

Scammers often set up exact replicas of legitimate websites to dupe investors and extract sensitive information like seed phrases from them to steal crypto assets from their wallets. Some red flags to spot illegal sites are:

  • Abysmally low or exorbitant NFT prices.
  • Sellers/collections with no blue badge meaning unverified.
  • A mismatch between NFT contact address and creator’s site address.
  • Suspicious URL or spurious links.
  • 100% anonymous developers with shady SM activity.
  • Trading platforms with zero functionality.

Tools like Scamadvisor, WhatsApp trend micro checks, BlockSite, etc., help detect phishing sites easily.

3) NFT Drops By Dummy Brands

Conmen can build fake NFT storefronts or produce forged works resembling a branded collection or store. In 2021, Larva Labs requested Foundation to take down a cryptopunk that was passed off as an original work by Ryder Ripps – a self-proclaimed net artist (43). Similarly, a scammer hacked Banksy’s official website and conned a collector into buying a fake Banksy NFT for $336,000. However, not all derivative works are counterfeit or construe copyright infringement.

4) Relying On Personal Messages

Receiving direct messages on social media chatrooms or personal emails promoting NFTs with overpromising roadmaps or “too good to be true” pricing and features, must ring warning bells in your mind. The messengers are probably frauds attempting to obtain personal information from users. They may also impersonate bonafide artists.

Buying Drops Not Within Your Budgetary Limits

 

The NFT craze has blown up the prices of many NFTs to jaw-dropping levels. Most prominent NFT projects command millions. However, the NFT market is highly speculative with no guarantee of a brand’s ever-lasting profitability or sustainability.

Moreover, if the current mania is a mere bubble, you may incur heavy losses in NFT investments. The value of your NFTs may plummet to zero even. Thus, set aside a specific portion of your wealth into an NFT investment account and don’t invest beyond your loss-absorption capacity.

Purchasing NFTs Drops That Seem Economical

Making thrifty unresearched purchases can have negative repercussions. While it may be tempting to buy NFTs that are affordable, a low NFT price may be indicative of grave issues like poor quality art, bad artist reputation, scams, passive community, or low rarity tier.

In the long run, such concerns may lead to a consistent low demand eventually pushing the NFT’s market valuation below your purchase price, reducing its resale value, and causing losses.

Do Free NFT Air Drops Exist?

The crypto universe often airdrops cryptocurrencies, tokens, or NFTs as brand promotion offers or exclusive rewards to community members for their loyalty, active participation, and digital asset purchases. They are freebies distributed as a part of a marketing strategy aimed at drawing investor attention towards a new cryptocurrency, NFT collection, NFT game, or DAO. 

Usually, investors must have a stipulated quantity of NFTs from a given collection, a Web3 wallet, participate in giveaways, or complete simple tasks like sharing an SM post, whitelist registration, etc., to qualify for NFT airdrops or gifts.

Some Biggest NFT Airdrops:

  • 5K proto-NFT by Larva Labs
  • 10K mutant serums to BAYC NFT holders
  • 3D animated NFTs to the first 8888 account creators on Pancakeswap

Are NFT Drops A Worthy Buy?

NFT drops are a starting point for brand positioning. They are comparable to opening day sales enabling you to acquire NFTs well below the market-clearing prices. Given the current NFT boom, if the drop you purchased becomes the next rarest Bored Ape or Cryptopunk, you can become a “Richie-Rich” overnight.

However, not all NFT projects give sky-high ROI. Some are downright worthless too. Moreover, the NFT territory is a breeding ground for scammers, with approximately $14B lost yearly to NFT frauds.

Hence, select NFT drops you genuinely like provided they are within your budget, support budding artists, endorse social projects, exercise caution, and do sufficient research before investing