What is an NFT Drop?
What is an NFT Drop?
NFTs are cryptographic assets taking the globe by storm. Maybe you’re learning how to buy NFTs for the first time, or you’ve just started dipping your toes into the weird, wide world of non-fungible tokens—or maybe you’re a seasoned NFT buyer ready to take your collection to the next level. No matter where you’re at in your NFT journey, there are tons of options out there for game lovers, sports fans, and people who are still figuring it out.
A quick look at any NFT marketplace shows you millions of already-released NFTs to choose from, but how do you get in on an NFT when it’s first released? This is where NFT drops come in.
What is an NFT Drop?
A drop is when an NFT becomes available—think of it as a release date with a precise time. By getting in early, you’re more likely to see the cheapest prices. These digital tokens are typically cheaper when they first drop and might appreciate in value after the NFT drop, meaning your NFT asset might be more expensive on the secondhand market. Wait until after the drop, and you risk paying these higher prices yourself.
So, how does an NFT drop work? A typical NFT drop has a maximum number of NFTs to be minted—aka, a limited supply. This keeps the number from getting so high that each NFT has zero rarity and, therefore, little value. A drop often has a purchase limit to spread the wealth and keep things fair.
Many NFT drops have preferred access lists, like DraftKings, which gives eligible users early and guaranteed access to drops.
Types of Drops
Before you learn how to buy NFTs when they drop, it’s important to understand that there are a few different kinds of drops. Know the difference before you make your next purchase.
Standard NFT drops
This first-come, first-served model, like the one used by DraftKings, is similar to a limited edition pair of shoes on sale. The moment the shoes become available, people buy them at whatever the set price is until they’re all gone.
For a standard NFT drop, a set collection number will go on sale at a set time. If the collection consists of 1000 NFTs, the drop makes all 1000 available to mint until they’re all sold. There will likely be a purchase limit, so a single buyer can’t purchase the whole collection at once. A queue mechanic, such as the one used at DraftKings, will also typically randomize which users get access. This ensures that everyone has a fair chance at purchasing an NFT.
Open edition NFT drops
Open edition NFT drops are similar to standard drops, except instead of a set number of NFTs, there’s an unlimited number that can be dropped and sold within a fixed window of time. These windows are often short, such as five or ten minutes long.
Auctions are for NFT drops or resales. The NFT auction process is like a typical auction, with the item going to the highest bidder. There are a few subcategories of NFT auctions. English auctions are for bidding on a single 1-of-1 NFT. A Dutch auction starts with a high initial price for an NFT that lowers incrementally until someone buys it. A candle auction keeps the closing of the auction unknown, preventing someone from waiting until the last second to bid.
Packs keep the specific NFTs you’re purchasing unknown, similar to buying a pack of trading cards. An added bonus of this model is the surprise element—anyone can get lucky and wind up with a rare and precious collectible.
Drops at DraftKings
DraftKings gives you several options to snatch your next dream NFT. Choose from drops, pack drops, and auctions, all curated by the NFT fanatics at DraftKings. In addition to DraftKings Marketplace, where you can buy NFTs and Packs, you’ll find NFT sports games like Reignmakers, with millions in prizes up for grabs.
Finding NFT Drops
Looking into how to participate in an NFT drop? Drops happen daily, and keeping track of what’s coming up can feel like a full-time job. Here are some tips to ensure you don’t miss out on that next big NFT release:
Where to find drops?
An easy way to keep tabs on upcoming NFT drops is to use an NFT calendar, and there are a few online that list major upcoming drops. Most NFT marketplaces also have daily drops.
Another great way to stay in the loop is to follow social media sites or discord communities dedicated to NFT news. These communities are critical resources and provide tons of insight into NFTs. The simplest and most stress-free option is to follow a trusted site that does drops, such as DraftKings Marketplace. Only purchasing from credible sites ensures you won’t get scammed.
DraftKings has frequent drops, and unlike other NFT marketplaces, DraftKings lets you buy your NFTs with regular currency. There’s no need to set up a crypto wallet or navigate cryptocurrencies when you pay for your digital assets with regular money. Check out the DraftKings Marketplace Discord to stay up to date on the latest drops.
Verify the Creator
As exciting as the NFT space is, there are no guarantees. That’s why looking into an NFT or NFT collection before investing in it is essential. Here are a few pro tips to help you find and buy assets you’ll love.
Do your own research
Learn how NFTs are created, and see who the creator is. Do they have a track record? Has effort been put into building something around the NFT collection? Are they linked to a reliable site? A bit of research can go a long way.
Buy NFTs you like
Although NFTs can appreciate in value for huge profits, making money off of your NFT isn’t a sure thing. Stick with NFTs you’ll be proud to own, whether it’s a beautiful piece of art, a cool collectible, or a piece of a fantasy sports game.
Avoiding NFT scams
Sadly, there are NFT scammers out there. The good news is that you can take plenty of steps to avoid NFT scams and keep your assets safe. One of the safest ways of investing in NFTs is by sticking with trusted sites and brands you know, like DraftKings.