What Are NFT Drops?
It’s hard to escape the world of NFTs at the moment. They’re absolutely everywhere! You can’t move on the internet for hearing about them in some form or another.
Non-fungible tokens - or NFTs, as they’re more commonly known - are digital tokens that are stored on the blockchain (a digital ledger). With cryptocurrency, each coin is the same but with NFTs, each one is entirely unique and they’re a way of proving ownership over a digital file of some kind, whether that’s an image, an audio file, a video or something else entirely.
No doubt, on your travels around the world wide web, you’ve come across the phrase ‘NFT drops’. As a term, this sounds quite vague when you first hear it but, after you’ve spent some time navigating your way around the NFT sphere, it’s actually quite self-explanatory.
Quite simply, the phrase refers to the creation of an NFT, which is then dropped into the public domain so they’re available for investors to view and purchase.
Drops happen all day, every day and if NFTs are something you’re interested in, either from a creative perspective or with a view to making investments, you’ll need to understand the nuances of the fabled drop.
Top tips for investors
First of all, it’s essential that anyone planning on investing in NFTs knows how to recognise the real deal and how to avoid the scams that have, inevitably, already started popping up.
Scams either attempt to deceive people out of their hard-earned cash directly or to gain access to the relevant data so that digital or cryptocurrency wallets can be hacked.
Examples of scams include the rug pull, where buyers are drawn in through the promotion of a fake NFT collection or project and the promise of making some money. These NFTs are shouted about on social media platforms but, as soon as a purchase is made, they simply disappear and their promises go unfulfilled, leading to a drop in value.
Airdrop scams, meanwhile, involve the use of social media sites like Instagram, Twitter and Facebook to promote NFT giveaways.
When people come to collect their prizes, cryptocurrency wallet information is requested - and which then gives the scammers access to the account, so they can take any money or any NFTs that are there, sitting pretty and ripe for the picking.
In order to avoid scams such as these, make sure you never share your cryptocurrency wallet information with anyone, no matter how convincing they may seem to you. There is never any need for anyone to ever know what your passcodes are - so make sure that they stay private so you can stay protected.
Before you invest in any NFT drops, it’s also a good idea to research the seller so you can see if they have a blue check verification mark to check if they’re the genuine article.
Also take the time, if you can, to have a quick look over their social media accounts (if they don’t have any, this is a big red flag!), read online reviews and check out their other listings just to be extra sure.
And, of course, try your best to only do business over reputable and well-known NFT exchange markets, such as OpenSea, Mintable, Rarible and MakersPlace, among others.
Remember that the NFT world is still in its infancy and new marketplaces are popping up all the time… which represents an excellent opportunity for cyber criminals. Don’t fall into the trap!
Another top tip for investors is to only invest in NFTs that they actually enjoy. Of course, there’s a big rush involved when purchasing tokens and this can quickly become addictive if you’re not careful. Before you know it, you’ll be buying drops you have no interest in… which will quickly get quite expensive and dilute the value of your portfolio.
Ask yourself some key questions before making any purchase. Do I really need this NFT? Why do I like it? Do I support the brand and what they stand for? Can I afford the purchase? Answering these honestly will help you make the right decisions when it comes to buying NFTs.
How to find good NFT drops
With NFTs flying about here, there and everywhere, it can be easy to find yourself overwhelmed by it all. Having a few tried and tested places you can go where you know you’re likely to find something you like can help you sort the wheat from the chaff.
If you’re looking for a broad selection of different drops, social media is a great place to begin. Here, you’ll find offerings from some of the biggest brands out there to small independent artists, so you’re sure to find what you’re looking for here.
Another really fun way to find your next big drop is to make friends online. Get chatting with people in NFT communities and start sharing your hints and tips. Who knows what you’ll come across?
And, of course, marketplaces are one of the very best places to go to find amazing drops, with NFTs being released on a daily basis. Keep an eye on the rankings you find on these sites, as this will help you see what’s trending and hopefully point you in the right direction for your next investment.
How to do a successful NFT drop
If, on the other hand, you’re not planning on investing in drops but would rather create them yourself, it’s important that you do all you can to maximise your chances of success.
As with anything that grows in popularity, it inevitably becomes more challenging for people to stand out from the crowd - and this is certainly true of NFT drops. There are so many collections out there now, how are you supposed to ensure that your creations are the ones currying favour, rather than your competition’s?
Given how competitive the marketplace is, the main question you need to ask yourself is: why should people buy my NFTs over someone else’s?
Once you have a clear idea of what sets you apart, you can start building up the hype! The more interest you can drum up in your digital tokens, the more likely it is that people will invest. The more potential investors you have showing interest, the higher the value of your NFTs will become.
As with any online offering, it’s important to do all you can to build a sense of community and really engage with your followers.
To facilitate this, make sure you have a professional and fully mobile-optimised website so that people can find out all about you and what you stand for. Promo videos and photos will also prove very useful from a marketing perspective. You can’t expect your work to sell itself, after all and there isn’t much good that can be said for being unappreciated in your own time.
It could prove particularly beneficial to make use of an NFT calendar if you are planning on making your first drops soon. These feature some of the most interesting drops out there, as well as lots of high-profile launches, so that investors can find new opportunities among their preferred interests.
These calendars are the best place to go for all NFT news, with sellers able to update their information so that buyers don’t have to spend hours scouring the web to find out what’s going on.
And, finally, one of the best ways to go about ensuring NFT drop success is to put fairness at the heart of everything it is you do in this sphere.
This is one of the hottest topics in the NFT world, since the economy is creator-driven - so make sure that you’re not completely neglecting people at the lower end of the economic scale, giving them the opportunity to enjoy your creations, as well as those who may be slightly more well heeled.
Understanding NFT drops and how they work is essential for both investors and those creating their own digital tokens. It could make a huge difference to the successes for both, so it’s certainly an aspect of NFTs that you would be wise to familiarise yourself with, regardless of what your overall objectives are for your digital token career.