Entering the web3 world can feel a bit like being a toddler, as you try to navigate and discover all the new possibilities. Every day, more words are added to your dictionary so that you can express yourself more accurately.
Inside the NFT universe, to know what an INO is seems pretty fundamental. However, when two words can mean the same thing, it’s always good to reinforce this similarity.
INOs and NFT Drops are one in the same.
But we need to dig a little deeper so we can properly understand the full idea of Initial NFT Offering i.e. NFT Drops.
The expression ‘Initial NFT Offering (INO)’ came from the concept of Initial Public Offerings (IPOs) and later from Initial Coin Offerings (ICOs).
Let’s start with IPOs
Initial Public Offerings (IPOs) are events in which a private company goes public in the market and opens its shares on the stock exchange to raise more money for it.
Those moments are often celebrated by companies because by opening their shares to the public, other investors can come in and contribute to the company’s growth.
It’s also a demanding process. After it’s public, it’ll require more updates and reports to the new shareholders and society in general.
And then came ICOs
Initial Coin Offerings (ICOs) can be defined the same way as IPOs but now we are finally entering the web3 world and the crypto market.
Pretty much the same as IPOs, ICOs is when a crypto company launches its products to the public.
However, instead of opening shares, crypto companies enable the sale of their coins to the first investors who are interested in their project.
Thus, early investors can buy crypto with the hope that its value will increase over time, thereby increasing their profits.
But that is not the only difference.
We must remember that cryptos are part of the web3 world.
Consequently, by purchasing a company’s coin, you are also acquiring utility inside that project – you can use those coins to buy or sell assets inside the project; use them to pay the necessary fees inside of it; stake them to have passive income, and much more.
And, finally, INOs
Initial NFT Offerings (INOs) follow the same concept as its two big brothers above.
It is the moment a collection of NFTs is launched to the public with the goal of selling and promoting the NFTs to a broader audience.
By participating in Initial NFT Offerings you can get really interesting advantages such as lower fees and even higher returns on investment.
Having a good and solid NFT platform is beneficial for both creators and collectors. It allows stability, efficiency, and safety for both parties as they put their investments in this new digital form of assets’ acquisition.
But is INO the same as NFT Drop?
The name ‘NFT Drop’ comes from the “drop” culture adopted by many sectors of the market – including the physical ones.
The concept of a “Drop” is to launch a new product or collection in one event with date and time scheduled to happen so fans, consumers and/or collectors can participate in an organized and programmed way and guarantee their purchase.
The Klever NFT Launchpad is a platform made to host your NFT Drops
If you match that with the idea of INOs, you will see that it is the same concept with different names.
Nevertheless, it’s important to highlight there can be only two names for it, but there is more than one format for an NFT Drop – some more common than others. We’ll take a look at the most popular:
1. ‘Good old’ Standard Drop
First-come first served.
The standard drop is when the launch allows users to buy the NFTs as they come, until the whole collection is finished.
Some rules may apply, depending on the project, such as only allowing users a limited number of NFT mints in one single transaction or the participation of just one wallet so more people can take part in the Drop as well.
As part of this process, there is also whitelisting: If the creator creates a whitelist, some wallets/users on the list can purchase previously from others, usually with a price limit and a start and end date.
2. Open Editions
This is made for those who enjoy exclusive products mixed with adrenaline.
With only a window of time set before the launch, buyers will be able to mint the NFTs of their interest. The final size of the edition will be defined once the time the window closes, and no more mints are permitted.
3. English Auctions
Very much like regular auctions, the highest bidder takes the NFT.
A certain period will be pre-determined, and the auction will start at a minimum price. The bidder who sets the highest price once the auction is over is the winner.
4. Dutch Auctions
The opposite of the English Auction, the Dutch version starts with a higher price with the intent of coming down.
It allows the collectors to define what would be the fairer price for the collection, however, it can come both ways: either the original concept can happen or, if the collection being sold is on the hype wave, then it can be over before it even starts to fall.
KleverChain can power up your Drop
It is also important to say that the same NFT Drop can have more than one type of selling formats: one collection, for instance, can have a standard, an English and Dutch format at the same time.
For now, Klever’s platform will work only with the standard and later it’ll add more formats.
The most important thing after all is to guarantee a safe platform to perform all those modalities. KleverChain is the engine that powers up all the functionalities inside the Klever NFT Marketplace making it faster, cheaper, and safer for developers and creators to invest in.
Anyone can create their own marketplace – the creator sets the fees and conditions.
Creators simply need to design and build their own user interface and frontend for their NFT Marketplace, while Klever provides the blockchain infrastructure and the NFT Marketplace protocol.
After that, it takes only one ‘Drop’ to begin your collector journey.
So, if you are interested in launching and dropping your project on our platform, you can submit your application by clicking here and our team will evaluate it and get in touch with you as soon as we can.