NFTs (or non-fungible tokens) are one of the most popular cryptocurrencies at the moment. They could see significant returns if the value of the new collection increases. Chainalysis’s new research shows that only a few participants make the most out of NFT profits.

Chainalysis’s report stated that the best investments are made in large collections to get maximum profits. Whitelisting, however, is an important step. This is the practice that allows a limited number of people to buy new NFTs at lower prices than others during minting events, where digital files are turned into digital assets on a blockchain.

Chainalysis reported that users who are whitelisted and then sell their NFTs make 75.7% profit, as opposed to just 20.8% who don’t.

Similar: The Mysterious Pak NFT Project Creates Sales of $91.8m

According to the study, only a few highly-skilled investors make most of NFT collection profits. Whitelisting allows early collectors to access lower prices and greater profits. This holds especially true for minting. There is also evidence to suggest that investors may have used bots in order to make purchases during minting events. These transactions could result in lost sales or even shutting out the less skilled users.

Whitelisting in NFT looks a lot like the highly-criticized preferential treatment that is given to insiders and investors in cryptocurrency. This was common practice before it was banned. NFTs are a new phenomenon that has made it popular this year. But there have been many questions regarding the property rights one receives when purchasing one.

Chainalysis reported that NFTs are one of the fastest-growing and most interesting areas in cryptocurrency. They have also become very popular among retail investors. However, it said that NFT traders must be aware of the market.

Continue reading on BTC Peers