10 August 2022
Non-fungible tokens (NFTs) made a rather inauspicious appearance in 2014 when digital artist, Kevin McCoy, created the first NFT named Quantum. Nothing really newsworthy happened in the NFT space for some time after this. Behind the scenes, though, developers were working on meme tokens and tradable game cards.
In 2015, a trading card game called Spells of Genesis was launched. This was followed in August 2016 by another trading card game, Force of Will. Although probably not known by this terminology at the time, these may have been the very first NFT drops ever. But, before we delve into too much detail, let's understand NFTs and NFT airdrops or drops.
NFTs are a special kind of cryptocurrency coin. A crypto coin is just a block of data. Each coin is derived from the previous one. When several coins have been created, each one from the preceding one, a chain of blocks forms. Hence, the name blockchain.
NFTs are essentially the same, except that they have some extra data. A crypto coin's data contains details of the creation date, the creator and the trail of ownership transfers. An NFT contains all of this data as well but the additional piece of data assigns a special purpose to the coin; or token as it is better known.
The extra data usually represents a unique asset. This is where the notion of non-fungible comes in. This token cannot be exchanged like for like with any other NFT. With cryptocurrencies, when you exchange one coin with another, you have an exact replica with the same attributes. With NFTs, no two are alike.
An NFT drop is the initial release of a new NFT or collection of NFTs. An NFT drop typically takes the form of an open invitation to mint a specific NFT at a specific price. The term airdrop is also often used in the NFT space, but they generally apply to a free issue of token or cryptocurrencies for promotional purposes.
Drops are advertised on various social media and NFT exchanges well beforehand. The aim is to create interest in the NFT in order to push up the market value. A drop is most often an opportunity or invitation to mint an NFT. It is seldom an outright and direct issue of an NFT.
Drops have a time window during which the token can be minted. The drop will specify the starting date and time as well as the websites or exchanges through which the tokens can be minted. Each drop has a limited number of tokens and, in some cases, the window will close only once all the tokens have been minted.
What does an NFT drop mean? Well, we know that now, so let’s get to the next important part. Getting in on a drop or airdrop is actually quite easy. As with any online shopping or product sourcing, it all starts with a web search. A quick search on “NFT drops today” will yield a number of links to exchanges or marketplaces where the drops are hosted.
Although some NFT drops may be listed as free, you will most likely have to at least pay the minting fee or “gas”. This is an amount of money, charged in the NFT's underlying blockchain currency, that rewards the people who mine the currency and authenticate each new transaction.
What does an NFT drop mean, and how is it different to an airdrop? According to the definition of “airdrop”, NFTs or cryptocurrencies may be credited to a person's wallet entirely free of charge. This is normally done to promote a new asset or as a reward for buying or owning a particular digital asset. Airdrops may also come in the form of additional privileges attached to the ownership of a celebrity NFT.
In most cases, however, an NFT drop will have a cost. The cost of an NFT can vary from a few cents to several million dollars. The price of a new NFT is set by the creator and depends on quite a few factors. Major factors include recovering the cost of creating the NFTs, the number of NFTs being released in the drop and the price of similar competing NFTs.
A fairly recent entrant to the NFT market is Singularifty, the NFT trading platform of the NextHash Group. Working with MetaMask, one of the most popular crypto wallets, Singularifty provides a platform for buying, selling and transferring non-fungible tokens.
The platform provides tutorials to guide you through the setup of your MetaMask wallet, and answers your most burning question, “what does an NFT drop mean?”. It also shows you how to claim tokens offered through NFT drops and how to transfer individual or multiple tokens to other Ethereum based wallets.
Singularifty will be launching their drops in the near future. With its ease of use, comprehensive support and guidance and vast range of tokens across various genres, the Singularifty platform is set to revolutionize the world of NFT collecting and trading. With the current lull in the crypto market, prices of NFTs are also under pressure. This is a great opportunity to get into the market and start your NFT collection off without spending a fortune.