What is Crypto Whitelisting?

What is Crypto Whitelisting

Content provided by various contributors. DYOR.

In the context of cryptocurrencies, whitelisting typically refers to creating a list of approved addresses or individuals allowed to participate in an Initial Coin Offering (ICO) or token sale. This is often used to prevent fraud or ensure compliance with regulations.

The process of whitelisting typically involves submitting personal information and documentation to the organization conducting the ICO or token sale to verify your identity and ensure that you are eligible to participate. This can include your name, email address, proof of address, and government-issued identification. Once your information has been verified and added to the whitelist, you can participate in the ICO or token sale and purchase tokens.

Some whitelists are also used as a priority list for public sales. If you are whitelisted, you will have priority to buy tokens during a public sale, even before the public sale starts.

Whitelisting can also be used in other contexts related to cryptocurrencies, such as in cryptocurrency exchanges, where it can limit the types of transactions or trading pairs allowed on the platform.

Even though Whitelisting is a way to avoid fraud, it still cannot guarantee a 100% fraud-free environment. This is because some scams are sophisticated and can still pass through a strict whitelisting process.

Steps To Participate in a Whitelisting Campaign

The specific steps involved in a crypto whitelisting process can vary depending on the organization conducting the ICO or token sale. Still, in general, the process typically involves the following steps:

  1. Sign up for the whitelist: This typically involves providing your name, email address, and other basic personal information.
  2. Verify your identity: This step usually involves providing a government-issued ID, such as a passport or driver’s license, and proof of address, such as a utility bill or bank statement. The organization conducting the ICO or token sale may also conduct a background or KYC (Know Your Customer) check to verify your identity.
  3. Submit additional documentation (if required): Depending on the organization and the jurisdiction, you may be required to submit additional documentation, such as proof of income, a W-9 form, or a self-accreditation form.
  4. Wait for whitelist approval: After submitting all of the required information and documentation, you will have to wait for the organization to review your application and approve you for the whitelist. You will usually be notified of your whitelist status via email.
  5. Participate in the ICO or token sale: Once you have been approved for the whitelist, you will be able to participate in the ICO or token sale and purchase tokens. You’ll need to send cryptocurrency (usually Ether) from a whitelisted address to the smart contract address of the ICO or token sale.
  6. Receive your tokens: After the token sale is completed, you will receive the tokens you purchased at the address from which you’ve sent the cryptocurrency.
Bitcoin live price
price change

Depending on the ICO, it may be possible for the whole process to be done in one go, in the form of a form to be filled out on the website. This way, you submit all the required information and documentation in one go.

Read more from author

Editor's picks

A Detailed Analysis of Euler Finance’s $196 Million Flash Loan Attack

On 13 March 2023 at 08:56:35 AM +UTC, DeFi lending protocol Euler Finance experienced a Flash Loan Attack. Euler Finance is a protocol that operates as a permissionless lending protocol. Its primary goal is to facilitate lending and borrowing of various cryptocurrencies for users. The UK-based tech startup utilizes mathematical principles to develop non-custodial protocols on Ethereum and other blockchain networks, with a focus on achieving high performance. Based on on-chain data analysis, the attacker has successfully executed multiple transactions resulting…

DevourGO Establishes Devour DPAY as the Payment and Rewards Token for the Restaurant Industry

The global economy is steadily transitioning from Web2 to Web3, and the restaurant industry is no exception. In this context, DevourGO has established Devour DPAY as this sector's payment and rewards token. The strategy offers restaurants a way to connect with Web3 communities while giving their guests real-world recognition for their affiliations. The project has three core utility pillars - crypto payments, DPAYBack rewards, and NFTs. In this way, DevourGO's ecosystem creates a win-win relationship between restaurants and their customers.…

BingX – A Crypto Exchange with Enhanced Copy Trading Features and More

As the number of traders in the crypto industry grows, different people look for different products to suit their needs. One of the most popular names in the cryptocurrency industry is BingX. It's a popular crypto exchange that offers spot, contract, copy, and grid trading to millions of customers in over 100 countries. Today's review will examine BingX and its features, focusing on copy trading and other essential platform aspects. What Is BingX? BingX is a leading crypto exchange that…

An Account of the Recent White Hat Attack on DeFi Protocol Tender.fi

In the latest development in the world of Decentralized Finance (DeFi), Tender.fi, a DeFi lending protocol, fell victim to a white hat attack. The alleged ethical hacker behind the attack had managed to drain a whopping $1.6 million from the platform, forcing the service to halt borrowing while it attempts to recover its assets. The attack, which took place on Mar-07-2023 at 08:21:38 AM +UTC, has caused significant concern among the DeFi community. According to Numen Cyber’s on-chain monitoring, the attacker siphoned 198…

Is Polkadot a Good Investment in 2023?

Since the inception of cryptocurrency, the bull run and the bear market have had significant impacts. In fact, because of the volatile nature of cryptocurrency, these are two sides of the coin every crypto investor anticipates when investing in the market. While investors look forward to the bull run, the bear market, also known as "crypto winter," is the dread of any investor.  As of 2022, a report by CNBC stated that cryptocurrencies suffered a considerable decline, losing about $2…

Clinton and Epstein’s Flight Log Now An NFT Collection by ViceHub

Crypto enthusiasts have found a new way to immortalize history with the launch of 'Lolita Adventures.' This NFT collection is based on former US President Bill Clinton and late financier Jeffrey Epstein's flight log. ViceHub, an Ethereum and Solana-based NFT project, has created this collection combining satire and journalism to tokenize a piece of history. The Idea Behind this New NFT Collection The crypto space is witnessing yet another project working to change the NFT narrative. Through Lolita Adventures, this…

What Are Crypto Copycat Projects?

Crypto copycat projects are cryptocurrencies designed to imitate the functionality and success of existing cryptocurrencies. These projects typically try to capitalize on the popularity of established cryptocurrencies, such as Bitcoin, Ethereum, or Binance Coin, by offering similar features, branding, or even a name close to the original currency. The aim of copycat crypto projects is often to ride the coattails of the original cryptocurrency's success and make a profit by selling tokens or coins to investors who are attracted to…

What is NFT Utility?

NFT utility refers to the practical uses and functions of non-fungible tokens (NFTs) beyond their traditional purpose as digital collectibles. While NFTs are often associated with artwork or unique digital assets, their utility can extend to various applications, from gaming to finance to supply chain management. One of the primary benefits of NFT utility is that it enables creators and developers to create more value for their digital content by making it more easily transferable and accessible to users. In…

What Are Soft Cap and Hard Cap?

Soft Cap and Hard Cap refer to two important concepts related to fundraising through Initial Coin Offerings (ICOs) or Token Sales. These two terms describe the minimum and maximum amount of funds a project aims to raise during its crowdfunding campaign. How Do They Work? A Soft Cap is the minimum amount of funds a project needs to raise to consider its fundraising campaign successful. It is a target set by the project team to ensure that they have enough…