Looking to understand what an NFT Drop is? Or NFT Drops Examples? Well, that is 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 NFT collections and solo NFTs in 2021 and making it more mainstream, more and more people are trying to look behind the intricacies of NFT Drops.
In this article, we are going to cover A-Z regarding everything that is to learn about NFT Drops, including, what they are, types, Examples, etc. But first, let us understand what are NFT Drops and why should you care?
What Are NFT Drops? Everything About NFT Drops
You are no stranger to the word ‘Drops’ if you have ever purchased limited edition or exclusive collectibles. It could be rare footwear, streetwear, anything for that sake. To explain in simple terms, when a label or a brand comes out with an exclusive edition or a limited edition of a product and ships them to stores for public release, this entire process is known as a ‘Drop.’ Collectors queue in front of stores to get their hands on that limited edition stuff within the ‘Drop’ period and be proud owners of those products.
When it comes to NFT Drops, you’re also trying to lay your hands on limited-edition collectibles. However, the basic difference is that the collectibles in question are digital – ‘dropped’ for public release by famed personalities or brands. See our NFT Drops calendar for the updated list of NFT Drops for 2022.
A Rundown On The Different Types And Examples of NFT Drops
However, even amongst NFT Drops, there are segregations. Here, we will try to introduce different examples and types of NFT Drops to you and make you aware of their uniqueness. Knowing the particulars about the NFT Drops will give you certain leverage while you are trying to mint the NFT Drops for the next hot NFT on the pipeline.
Standard Drops are the most common types of NFT Drop formats that enable you to mint NFTs for a pre-meditated price on a first-come, first-serve basis until the entire collection is minted. If there are 5555 unique NFTs in a particular collection, a standard NFT Drop will enable you to mint all 5555 until the last one of them is purchased.
However, the catch is that certain NFT collections put a restriction on the number of NFTs that can be minted to a single wallet or during a single transaction to encourage more collectors to participate in the NFT Drop.
Open Editions are like the erstwhile open marketplaces when collectors and artists can mint an unlimited number of NFTs of a collection during a set period of time. The time window is especially narrow – five to ten minutes. The total number of NFTs that the collectors can mint during that window contributes to their final NFT collection size that will be featured.
English Auctions are mostly limited to select NFT marketplaces that are known for super-rare NFTs featured by a creator. English Auctions invite bids from the collectors like a normal auction within a set time period for a super-limited or rare 1/1 NFT. Once the time period ends, the NFT gets in the hands of the highest bidder.
From the auctioning point of view, the Dutch Auctions Type can be considered a kind of anti-NFTs, as this kind of NFT Drop starts with a higher price range for the NFTs in a collection and gets lower with time. Dutch Auctions are also pretty rare, and from the project’s point of view, these auctions are intended to allow the collectors to have a fair buy-in point.
Therefore, for example, if a Dutch Auction starts with NFT prices at 5 ETH, several buyers could be waiting for the price to go down to 0.5 ETH. However, the Dutch Auction idea is quite undermined, as several popular NFT Drops occurring in this format get sold out immediately once the collection is put up. There are multiple high-stakeholders who might not want the price to go down as much to lose out on their profits later while trading their owned NFT pieces.
After learning everything there is to know about NFT Drops, it might have already roused the temptation in you to participate in the next NFT Drop with all your resources. We have curated a list of the best NFTs on Our NFT Calendar page for you.
Before investing in NFTs, read about the apparent red flags that are associated with the phenomenon and the risk of scams that can happen, do your own research, and approach your favorite NFT Drop with caution.
This article is published by Infostor.com (c). If you are looking for upcoming NFTs, Check our Upcoming Solana NFTs Page.