NFT Project Launch Strategies - Part 1 of 2
Updated: Jun 12, 2022
This article is part 1 of 2, where we break down the different launch strategies, new projects in the NFT space use to garner interest from the NFT community.
#1 - Standard Launch Strategies
The below launch strategies, form the base strategy for all new NFT projects. No matter how a new project may put a spin and narrative surrounding a launch, it will all tie back to these three fundamental strategies and so having a good grasp of these, will set you in a good place to explore the NFT space.
‘Traditional’ Mint - The project will build some awareness in the market but not excessively. It will set 1 price to mint at and the price will be the same for everyone. The benefits of this strategy, is that it is considered "fair". However, if there is hype [excitement and anticipation] around the project, NFT community members will all try to mint the project at the same time, which in turn, will lead to gas wars - This carries the risk of people spending ETH of gas, without successfully securing the NFT asset.
Dutch Auction - This is an auction, whereby the price of minting an NFT asset from a project, will start high, with incremental drops over time - The price will continue to drop until either all of the NFTs are sold out or the price goes meets the minimum reserve price - adding an element of gamification to NFT project drops. This approach results in the pricing of each NFT asset being dynamic, resulting in lower gas fees. One disadvantage is it can lead to FOMO and people buying in at the highest price point i.e. someone may buy an NFT at 5 Eth, while every 15 minutes the price goes down 0.1 Eth.
Free Mint - As the name suggest this is free to mint - This has been a hot strategy for 2022 [Think GoblinTown]. The main benefit of this, is that it is risk free for the initial minter, so they do not have the anxiety of loosing their money in a rug pull. Much the same as with "traditional" mint, this strategy can encourage gas wars.
These strategies can be combined with different tactics such as a stealth launch and post-mint reveal, check out part 2 here to find out more about them with examples of a horrow launch and a launch strategies thats trending in 2022.
If you are building an upcoming NFT launch, which strategies would you use? If you need advice on which is best for your project we can help. Get in contact with us here.