NFT Minting and Rarity Rating

nft minting and rarity rating

Non-fungible tokens are the most discussed concepts in the blockchain space today due to their way of restructuring how users transfer assets and securities. Using this technology, creatives can sell their works – digital artworks, music, games, tickets, etc. – in the form of digital tokens. NFT investors, otherwise known as collectors, can bid for these tokens and pay with cryptocurrencies. Therefore, it is safe to say that NFTs have created a new path for creatives to monetize their content. With the increasing adoption of NFTs, creators sought to understand the intricacies of minting and find cost-effective ways to mint tokens. On the other hand, investors want to ensure that they are buying unique and valuable NFTs. Making NFT minting and Rarity rating an important step to uncover the most beneficial investments. 

What Is NFT Minting and How Does It Work? 

Minting is the process of converting a digital file or physical asset into tokens or collectibles on a blockchain. These items are stored on a distributed ledger system, and users cannot modify or delete them. The minting process turns a simple file or asset into a blockchain-based asset that users can trade in exchange for cryptocurrencies. 

Minting is generally simple; all the creator needs is a digital file or asset, wallet, web browser, transaction fees, and access to an NFT marketplace. The process starts with installing the wallet extension on the browser.  

Creatives can leverage numerous wallets, including Metamask, AlphaWallet, Math Wallet, Trust Wallet, and Coinbase Wallet. However, it is worth noting that some wallets support all blockchains while others run on Ethereum only. This is an important factor to consider before minting an NFT.   

The next step is to connect the wallet to a marketplace. Users can explore numerous options, such as RaribleOpenSea NFT, SuperRare, Nifty Gateway, and Mintable. NFT marketplace activates users’ profiles immediately after they connect a wallet, and after that, the user can go ahead to fill in his profile details. 

Upon profile completion, creators can create NFTs or upload pre-existing files in different formats as permitted by the marketplace. Then, he can assign titles and descriptions to his item, after which he will proceed to mint. 

Blockchains usually charge transaction fees, and minting is no exception. An NFT creator must have some money in their wallets to mint tokens. Once the creator pays the fee, the minting process is complete. It is worth noting that one may have to wait a while for the blockchain’s smart contract to execute codes integrated into the digital file. 

Stages That Investors Can Get Involved In An NFT Project 

Just like the traditional finance market, there are different stages at which investors can get involved in an NFT project. In the NFT space, the stages are subdivided into two major phases: the pre-launch phase and the post-launch phase.  

More often than not, creators need funds to kick start their projects. They may need to hire developers to write their smart contracts or even other creators to help create a bulk of digital files, which usually amount to thousands. Let’s say that the creator has the technical knowledge and enough files; they still need to funds to pay the transaction fees for minting, build a community and create publicity around the project, and all these cost a lot of money. 

During this phase, creators mostly source funds from venture capitalists and angel investors, who, in return, own a percentage of the project or receive some tokens upon launch. This method of investing is private as the creators initiate the meeting with investors.  

When the tokens are finally minted, NFT creators open pre-launch sales in which members of their community can participate. On occasion, investors have the opportunity to purchase the NFT at a lower rate during pre-sales, so they quickly jump on the bandwagon. 

The last stage is the post-launch sale. At this point, the creators have fully launched the NFT project, meaning that everyone can buy. Investors who purchase at this point may have to do that at a higher price than the pre-launch sales, but a viable project will guarantee good returns. 

NFT Rarity And How To Calculate It 

NFTs are usually difficult to price because creators’ works are unique and individuals have different tastes. This makes it possible for two pieces of work from the same artist to have different price tags. Pricing becomes more difficult when creators mass-produce their NFT because tokens in the same series use a similar template. The only distinguishing factor is the element on the template.  

Therefore, an NFT tends to become popular if it possesses rare elements. Creators usually publish the rarity score of tokens on the project’s official website, but it is important for collectors to know how these scores are assigned. 

NFTs possess different traits, and the traits have values. To calculate the rarity score, investors can use this formula: 

Rarity Score for a Trait Value = 1 / ([Number of Items with that Trait Value] / [Total Number of Items in Collection]) 

rarity ranking crypto punks

Collectors can determine the total rarity score by summing up the rarity scores of all the different trait values. Rarity.tool’s founder created this calculation method, and it has become the yardstick for ranking tokens in the marketplace. 

A token’s rarity also determines whether or not it would trade at the floor price. The floor price is the suggested retail price of an average NFT, and rare tokens sell higher than the floor price. For example, if an NFT trades at the floor price of 1 ETH, it means that it is not considered rare.  However, one with rare elements will certainly trade above the floor price. To this effect, collectors should always conduct a rarity check before selling their NFTs.  

Also, creators receive automatic payouts, popularly known as royalties, whenever a collector resells their NFTs on a marketplace. These payouts are interminable and guided by smart contracts, ensuring automation. Most marketplaces allow NFT creators to choose their preferred royalty percentages, but the standard range is 5% to 10%. It is worth noting that not all NFTs yield royalties. If the creator does not include royalty payment in the smart contract, he won’t receive any. 

Using Community Building To Boost An NFT Launch 

NFT marketplaces are overwhelmingly competitive; therefore, creators need to go the extra mile to drive publicity to their projects. One of the proven ways to ensure the successful launch of an NFT project is to build a community before launching. Artists can leverage social media platforms like Twitter, Discord, YouTube, and TikTok to build a large following. 

Most collectors discover NFTs on social media platforms, so if NFT authors can create enough hype around their project, they can increase their success chances. This is because when prospective collectors see a lucrative project, they will join its social media community to observe and find out more information. Then, if the NFT possesses the elements or qualities they seek, the purchase happens.  

community also gives its members a sense of belonging. As a result, the community members will make it a mission to spread the word and bring in more people. The more people they convince to join the community, the higher the project’s chances of success.  

The Concept of NFT Auto Generation 

As we know, NFT minting is driven by lines of codes, but creators can modify these codes to auto-generate more tokens easily. Here, the creator will use different pre-existing code-compiled layers containing varying designs to create unique tokens. These layers can also be created with design apps such as Photoshop and Blender. Before generating these tokens, the author needs to develop a concept, as it will help him determine the various layers he will need. 

The next step is coding. Creators can write their codes or use already existing codes uploaded on GitHub by doing a little modification. During this process, programs such as VS Code, Solidity, Node.JS, and Truffle come into play. The created layers are then uploaded on the programming application – Solidity or VS Code – where the written code is used to manipulate the layers to auto-generate as many NFTs as the creator desires. 

Conclusion 

The NFT minting process is as simple as opening an Amazon or eBay account and listing a product. Creators require little technical knowledge to do this, but it’s nothing they can’t handle. Investors should also make an effort to know the rarity of a token before selling on marketplaces, and they can achieve this using Rarity.tool. 

Furthermore, authors can now leverage tools, such as community building and auto-generation, to ease their launch process while generating huge revenue. Given the numerous technologies in the NFT space, it is easy for both creators and collectors to thrive with ease. All they need to do is to utilize them the right way. 

Contact Data

Name: Chris Jones

Organization: UrbanLink Media

Phone: 1-855-730-5465

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