Looking to understand what an NFT Drop is? Or examples of NFT drops? Well, that’s no surprise, since non-fungible tokens and everything around them have taken the world by storm. With more and more celebrities, icons and internet sensations dropping their own solo NFT and NFT collections in 2021 and making them more mainstream, more and more people are trying to look behind the intricacies of NFT Drops.
In this article, we are going to cover from A to Z all there is to know about NFT drops, including what they are, types, examples, etc. But first, let us understand what NFT drops are and why should you care?
What are NFT drops? All About NFT Drops
You’re no stranger to the word “Drops” if you’ve ever purchased limited editions or exclusive collectibles. It could be rare shoes, streetwear, anything for that. To explain in simple terms, when a label or brand releases an exclusive or limited edition of a product and ships them to stores for public release, this whole process is known as “Drop”. Collectors line up outside stores to get their hands on these limited edition products during the “Drop” period and be the proud owners of these products.
When it comes to NFT Drops, you’re also trying to get your hands on limited-edition collectibles. However, the fundamental difference is that the collectibles in question are digital – “abandoned” for public release by famous figures or brands. Check our NFT Drops schedule for the updated list of NFT Drops for 2022.
An overview of the different types and examples of NFT drops
However, even among NFT drops, there are segregations. Here we will try to introduce you to different examples and types of NFT drops and make you aware of their uniqueness. Knowing the details of the NFT drops will give you some leverage as you try to hit the NFT drops for the next hot NFT on the pipeline.
Standard Drops are the most common types of NFT Drop formats that allow you to mint NFTs at a premeditated price on a first-come, first-served basis until the entire collection is minted. If there are 5555 unique NFTs in a particular collection, a standard NFT Drop will allow you to hit all 5555 until the last of them is purchased.
However, the problem is that some NFT collections impose a restriction on the number of NFTs that can be minted in a single wallet or in a single transaction to encourage more collectors to participate in the NFT Drop.
Open editions are like the old open markets where collectors and artists can mint an unlimited number of NFTs from a collection for a set period of time. The time window is particularly narrow – five to ten minutes. The total number of NFTs collectors can mint during this window contributes to the final size of their NFT collection that will be featured.
Auctions in English
English auctions are mostly limited to certain NFT marketplaces known for extremely rare NFTs presented by a creator. The English auction invites collectors to bid like a normal auction within a set time frame for a super limited or rare 1/1 NFT. Once the period is up, the NFT is in the hands of the highest bidder.
From an auction perspective, the Dutch Auction type can be seen as a kind of anti-NFT, because this type of NFT Drop starts with a higher price range for the NFTs in a collection and decreases over time. Dutch auctions are also quite rare and, from a project perspective, these auctions are intended to allow collectors to have a fair point of purchase.
Therefore, for example, if a Dutch auction starts with NFT prices at 5 ETH, several buyers might wait for the price to drop to 0.5 ETH. However, the idea of the Dutch auction is quite undermined, as several popular NFT drops occurring in this format are sold immediately once the collection is set up. There are several important stakeholders who might not want the price to drop so much only to lose their profits later when trading their NFT coins.
After learning all there is to know about NFT Drops, it may have already sparked the temptation in you to participate in the next NFT Drop with all your resources. We’ve curated a list of the best NFTs for you on our NFT calendar page.
Before investing in NFTs, read the apparent red flags associated with the phenomenon and the risk of scams that may occur, do your own research, and approach your preferred NFT Drop with caution.
This article is published by Infostor.com (c). If you’re looking for upcoming NFTs, check out our upcoming Solana NFTs page.