Ellen Britt for CNT#NFT
You’ve probably heard the word “drop” used when a musical artist is about to release a new song. Or a new, limited edition of the latest big-name sneakers are about to hit the market. That’s a drop too.
Well, the same thing applies in the NFT world, when a new NFT is about to be released to the public. Only this time, the drop is digital.
Most NFT drops don’t just come out of the blue but are announced in advance so that as many people as possible will have a fair share at nabbing them.
But there are many different ways in which NFT drops are handled, depending on the company that is behind the NFT.
Here are four of the most common ways NFT drops are handled:
One – The Standard Drop
The standard drop does things on a first-come, first-served basis, allowing collectors to mint during the period of the drop until all the NFTs are gone. Some companies will place restrictions on how many NFTs can be minted to a single wallet or during a single transaction, in an attempt to make the process fairer for all who want to participate.
Two – The Open Editions Drop
In an open edition drop, the limit is not on the number of NFTs available to mint, but the time window in which to mint them is restricted. This period of time is usually around five to ten minutes and the total number of NFTs minted during the time period determines the final size of the edition.
Three – The Dutch Auction Drop
In a Dutch auction drop, the price of the NFT starts out high and then decreases until the entire collection is sold out. This is supposed to enable the market to set a “fair” price for the NFT but in reality, many NFTs who are sold at Dutch auction, sell out fairly immediately at the higher price point.
Four – The English Auction Drop
In an English Auction, the NFT is extremely limited as to the number of NFTs available, usually 1 of 1. There is a set time frame in which collectors can bid and when the time expires, the NFT goes to the highest bidder. As the NFT space continues to grow and innovate, you’ll likely see other types of drops, such as the Stealth Drop, where a creator releases the NFT with no prior announcement. Or Airdrops used as marketing tools, as we discussed here.
Mintified Means Innovation
And remember that Mintified is not your usual NFT platform. Look for a whole raft of new and innovative ideas coming soon. Drop that in your pipe and smoke it!