What Is NFT Sniping?

Recently, the NFT sphere has become a real magnet, attracting an incredible number of investors interested in making money on digital objects. In the background of the excitement around the new opportunities that NFT projects provide, many different practices allow you to monitor the NFT market and promptly buy the necessary lots. One such practice is NFT sniping.

This article will help you understand what NFT snipping is and where it came from. You will also learn about what techniques and tools are used for this practice and what impact it has on the NFT space.

What Is NFT Sniping And Where It Comes From?

NFT sniping is a recently widespread practice based on analysing the market and searching for new or undervalued NFTs of projects whose actual value differs from the real value for a number of reasons in order to buy them quickly before other interested parties do so. In other words, NFT sniping is a tactic of instant purchase of NFT projects on the market at the most favourable price for further trading or resale at a higher price, while the real value is unknown to the general public. The advantage of this approach is that NFTs in high demand or undervalued are bought at the most favourable price at the time of project launch, which does not allow other bidders to raise the rate to repurchase it and creates the potential for a significant profit.

The expression NFT sniping describes a military term implying shooting at the enemy from cover, with high accuracy and at long range. This practice was the result of the development of the NFT niche, which by its nature is a dynamically changing environment, where in some cases, the sale of NFT projects is a kind of auction, giving the opportunity to purchase the necessary token at the most favourable price (floor price) using highly accurate and fast tools of analysis and monitoring of different marketplaces and sites involved in their implementation. In this case, NFT sniping emphasises the speed and efficiency of operations aimed at acquiring NFT and its subsequent resale.

Techniques and Tools Utilized in NFT Sniping

Despite the fact that NFT sniping is a relatively new practice of generating increased profits from the sale of niche projects, it has a rampant popularity that has come due to the practicality of the method based on the use of highly effective tools for finding undervalued NFTs. Among them, the following stand out:

Internet Communities and Resources

NFT snipers have been shown to join a variety of online communities and groups where they can find like-minded individuals and exchange information, tips and ideas related to new and valuable NFT project listings. For this purpose, any popular information resources, social networks like Facebook or messengers, including NFT sites and various forums are used.

As it enables them to share expertise and keep up with market trends and possibilities, information sharing among such groups can be a useful tool for NFT snipers. Collaboration and information exchange also assist snipers in enhancing their tactics, finding new analytical instruments, and navigating the challenges of the NFT market. To avoid potential fraud or inaccurate information, caution must be exercised while disseminating information, and the credibility of sources must be confirmed.

Browser Extensions 

Another group of tools that give rarity snipers an advantage in the NFT market when buying projects are browser permissions. They are programs and services that work on the model of a search engine that helps to track different marketplaces and platforms trading NFTs, analyse their lists and send notifications in case of new or undervalued NFTs in the public domain. Browser extensions can also provide useful analytics and information about the NFT market, such as pricing trends, historical data, and rarity analysis.

Thanks to the functionality of these extensions, it becomes possible not only to conduct a comprehensive assessment of each NFT project according to a variety of criteria, the most important of which is rarity, but to collect analytical and statistical data, including information about the origin of the project, its category, date of creation, as well as the blockchain network in which it was created.

NFT Sniping Bots

One of the most popular tools playing a significant role in NFT sniping is sniper bots. NFT sniper bot is an automated system based on mathematical calculations that perform complex analysis and monitoring of the NFT market in real time in order to find undervalued and potentially profitable projects according to a number of criteria, such as value, NFT rarity, or price. The sniping bot program allows you to automatically buy NFT projects that meet the necessary purchase requirements, giving a great advantage in speed and efficiency over manual methods of carrying out the same process. Sniping bots are expected to evolve with the help of AI technology.

Impact of Snipping on the NFT Market

As the world of NFTs continues to expand, NFT sniping has become a divisive practice, receiving both support and criticism. In spite of the fact that many individuals perceive this to be a smart trading strategy, concerns have been raised regarding ethical considerations and the potential negative impact on the NFT market. A decision regarding how NFT sniping will be handled in the future will be based on the trajectory of the NFT market. Any regulatory measures or market adaptations to level the playing field will depend on the future trajectory of the NFT market.

To date, the impact of sniping practices on the NFT industry is the subject of active discussion in this area. Some experts argue that this hair dryer will contribute to market instability, which in turn will provoke the process of artificially inflating the cost of NFT projects, creating barriers for ordinary market participants who do not have much capital. On the other hand, many are of the opinion that this practice is based on a mechanism that determines an integral component of competition in markets where their participants are constantly looking for opportunities to profit.

Since this practice has been developed and has support among many NFT market participants due to its potential profitability, it is highly likely that in the foreseeable future, there will be systems and solutions preventing the possibility of getting access to potentially profitable projects in advance by analysing their data with the help of various programs. This position is conditioned by the need to ensure transparency and trust, as well as equal competition, giving every investor the opportunity to have a chance to buy an NFT project at the best price at the very last moment.

Conclusion

The practice of NFT sniping is based on the use of automated bots that help to quickly and efficiently analyse the markets of NFT projects and make profitable purchases. The NFT community conducts experiments studying the possibilities of this tactic for its operability, which in practice will allow getting high profitability results within the framework of buying undervalued NFTs.

Written by

Constantine BelovLead Author, Content Department in Marketing

Reviewed by

Tamta SuladzeLead Author