What Is An NFT Drop?

What Is An NFT Drop?

Whether you're new to the world of NFTs or you're already familiar with these digital assets, an NFT drop is something you're going to come across regularly. They happen every day, multiple times a day. But what is an NFT drop?

As a new NFT investor, you can make the most of the opportunities presented if you’ve done your research and are well-prepared. To help you out, we’re answering the question, “what is an NFT drop?” as well as how they work and how to avoid common NFT scams.

What Is an NFT Drop?

First of all, what is an NFT drop? An NFT drop is simply the release of a new NFT collection or project. This usually happens on a specified date and at a specified time.

Getting in early as the drop goes live means that you have a better chance at buying the NFT for cheaper before its value increases (or hopefully increases!). There may be a limit to how many purchases can be made and how many NFTs can be minted during an NFT drop period, so getting in early is best for investors and collectors looking to have their pick of the first available.

How Do NFT Drops Work?

Now that we’ve answered the question, “what is an NFT drop?” let’s talk about the next question on your mind, “how do NFT drops work?” To participate in new NFT drops, you'll first need to register with the NFT platform. You can then look at the available NFTs and make your desired purchase.

Many NFT drops require you to follow certain instructions to be eligible for an NFT. Since NFT drop time is limited, this creates a sense of urgency, often driving up the prices for popular new collections. The NFT community sees new drops as a way to score valuable and rare NFTs at the cheapest price possible before they skyrocket in value.

Minting Process

Minting is the term used to refer to the process of transforming digital content, such as virtual art, into a digital asset or crypto collectible (known as an NFT) on the Ethereum blockchain. This is not terribly dissimilar to physical fiat coins being minted and put into circulation, except each NFT is unique and can't be exchanged for or equal to another token.

After minting an NFT, it's stored in a decentralized database called the blockchain forever. This digital storage and validation technology also makes it impossible to modify, hack, or remove.

During a new NFT drop, the creator of the NFTs can schedule royalties from sales so they'll receive a commission whenever their work is traded on an alternative market, as well. This allows creators to continue profiting from subsequent sales and creating more NFTs for future collections.

How Much Does Minting Cost?

Minting an NFT has its own cost, as well. The minting price can cost anywhere between $50 and $200 or more, depending on a variety of factors such as the demand on the Ethereum network at the time and the NFT platform being used.

As most digital art is stored via the Ethereum blockchain, using this blockchain (minting NFTs, selling, buying, or transferring) also incurs what are called "NFT gas fees.”

What Risks Are Involved?

Buying NFT drops comes with a risk, but with the right knowledge, you can avoid getting scammed or losing money. Be aware of these common scams in the NFT space:

  • Rug Pulls
  • Fake websites or brands
  • Direct messages or emails
  • High gas fees

Rug Pulls

A rug pull is when someone launches an NFT or crypto project, raises funds, and then quickly abandons the entire project. You can avoid these situations by gauging how active a brand is on social media, Discord, and other community platforms. A brand that isn't sincere with its efforts is a red flag.

Fake Websites and Fake Brands

Fake sites and fake brands are everywhere. They can hide in plain sight on your search engine and be completely unsuspecting. Some fake websites or brands can look really legitimate, almost identical to the real site it’s imitating, only once you connect your digital wallet they can steal your assets.

To avoid fake websites, always check the site's URL before you buy NFT drops and make sure you're buying from the official brand.

Direct Messages or Emails

Ever received emails or private messages claiming that you have won a prize? The same hustle is happening in the NFT space with scammers claiming you have been chosen to participate in a special NFT drop or whitelisted to get in early on a sale.

Recognize these kidneys of red flags and never reveal personal information, your crypto wallet details, or secret phrases to anyone.

High NFT Gas Fees

Another risk to consider as you learn about NFT drops is high gas prices. Purchasing NFTs on a marketplace that utilizes the Ethereum network may come with the downside of hefty fees, especially when the blockchain network is experiencing high traffic. Every transaction on the blockchain requires gas fees to be paid.

NFT Drops On UCOLLEX

UCOLLEX offers an exciting and innovative NFT marketplace featuring unique NFT drops from talented, curated artists. Unlike other marketplaces, UCOLLEX allows users to easily buy NFTs with a credit card; no crypto needed!

This distinction makes this awesome platform accessible to everyone as well as providing a way to buy NFTs without paying gas fees!

How to Pick An NFT Drop

Now that you’ve got an answer to the question, “what is an NFT drop?” let’s talk about how to pick an NFT drop worth your attention.

Where to Find NFT Drops

First off, where can you find NFT drops? If they’re happening all the time, how do you learn about when a new collection is set to release so you can research it? A few easy ways to find good NFT drops include:

  • Social media
  • NFT communities
  • NFT news articles
  • NFT marketplaces

Social Media

Social media is arguably the best way to stay ahead of the game in the NFT world. Platforms like Twitter, Discord, Instagram, and Youtube allow NFT devotees to discover a broad range of NFT drops.

NFT Communities

Networking with fellow NFT investors by joining Discord servers, Telegram groups, Subreddits, and other similar communication platforms is a fun way to learn and share information. Just look out for scammers lurking in some groups!

NFT News Articles

There are several NFT and crypto news outlets that share up-to-date information on upcoming drops, like Coin Rivet News or NFT Evening.

NFT Marketplaces

Most of the time, you can also find reliable information on upcoming NFT drops on your preferred NFT marketplace. Popular marketplaces include Rarible, OpenSea, Mintable, and UCOLLEX.

Joining A Project’s Discord

NFT projects and brands use Discord as a space for their community to gather and connect. Here you'll find updates, announcements, and support related to the non-fungible token project.

Discord servers are free to join, a powerful tool for gauging the strength of a project's community, as well as a chance to check out the brand's founders to see how well they interact with their community.

After you join a Discord server, make sure to read the rules before engaging in the chat.

Research Before the Drop

As with any form of investment, doing your own research before participating in an NFT drop is critical.A few pointers for researching an NFT project are:

  • Analyze the founders, the entire team, and the NFT creator to determine if they are reliable, have a strong reputation, and if your values align.
  • Search for members of the team's past projects to see if they have been a success.
  • Follow the relevant social media channels to get an idea of the hype around the project.

Follow UCOLLEX for Future NFT Drops

If you're ready to dive into the mind-blowing world of NFTs, start by giving UCOLLEX a follow and joining our rapidly growing Discord community for news on the latest can't-be-missed NFT drops and more! With so many NFT drops happening, this is the perfect place to stay in the know.

Now that we’ve answered the question, “what is an NFT drop?” we hope you’re feeling more confident to jump into this new and exciting way for investing, collecting, and creating. As with any kind of investment, it’s crucial that you do your own research before purchasing. With the processes outlined in this guide, you’ll know which NFT drops are the best for your goals and be able to tell if there are any red flags that should make you wary.

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